Franchising grew to 58,885 establishments in 2021 and is projected to grow an additional 3.3% in 2022, increasing to 60,809 establishments. Franchises’ economic output grew at a record rate of 18.10% in 2021, with an increased output of $61.6 million. Output growth is expected to continue into 2022 by 6.1%. Source
While Covid-19 may have affected that prediction slightly, franchise growth in 2022 stays indomitable even during economic or health crises. Depending on the business, many franchise brands are even thriving. Thus, there are numerous reasons why franchising will be more significant than ever in 2022 for franchisors and franchisees (franchise owners).
Franchise Creates Employment
While some franchisees were forced to downsize their employment, many were judged necessary enterprises and were permitted to remain open, profitable, and even expand and hire additional employees. Additionally, because a franchise has a proven business model and consistent products or services, it is more likely to retain clients.
A franchise is One by Many
Franchise firms have the advantage of giving franchisees a corporate method of success rather than leaving them to fend for themselves through trial and error. They have a proven structure and support system, which makes a franchise significantly less hazardous than a do-it-yourself venture.
Collective in Success
Franchisees are not alone in times of financial distress or other adversity. Being a part of a franchise brand provides franchisees with a strong support system for exchanging best practices and business approaches that enable them to weather unforeseen economic or societal upheaval more effectively than independent business owners. This is the strength of a well-developed entrepreneurial network!
Low Expense through Volume Buying
The purchasing power of a wider network provides franchisees with additional chances to control costs. And, during any crisis, this can make all the difference in terms of remaining competitive. Franchisees frequently also benefit from modern technology and software given by the franchise company to more effectively track their purchasing and orders.
Brand Name that Sticks
Being a part of a well-known national franchise brand. Even in difficult economic times, name brands retain an advantage in drawing customers. Franchise brands are recognized for their consistency and quality, which instills confidence in the product or service on a national and local level.
While successful franchisees promoting a national brand continue to fuel franchise growth in 2022, they understand that operating a business is difficult and requires a strong entrepreneurial attitude. Each franchise brand has unique needs, but in general, to run a successful franchise, you need good organizational and communication skills, as well as a commitment to study the business. Additionally, it is critical to believe in and respect the benefits of adopting a tried-and-true model and to embrace the existing system in order to ensure the greatest chance of success.
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