In the not-too-distant past, opening a franchise often offered meant more security and stability than opening an independent business. But that was before the coronavirus public health emergency shook up business owners and consumers alike. As we move forward, what does the future of franchises look like? Every franchise is managed differently, yet some factors are common.
Making the Most of Interdependence
Franchisors and franchisees depend upon each other. During the COVID-19 crisis, some franchisors stepped up to provide their franchisees with as much support as possible. For example, Dunkin’ Donuts made sure their franchisees knew about government support programs like the Paycheck Protection Program (PPP).
Are you concerned about the future of franchises like yours? Consider contacting your franchisor to see what help is available.
Remaining Flexible
Consumer behavior has changed since last year, primarily influenced by government restrictions and shutdowns. It might be necessary for you to adapt your business model to ensure your franchise makes it to the future. For example, curbside service became common at many restaurants during the height of the pandemic. The new normal for some franchises might include continuing and improving the customer’s experience during curbside pickups.
Other franchises might also find themselves facing a future that looks little like the past.
Seek Guidance
Franchisees need to understand and consider every opportunity for the support that is offered to them. Remember that your franchisor is facing some of the same difficulties you are as you both look toward the future of franchises. As mentioned above, some franchisors have dedicated themselves to helping their franchisees succeed. You just might have to seek out new opportunities.
Stay the Course
Despite all the difficulties, many franchises still have lower operating costs than independent businesses. This fact could increase their viability in a wildly-fluctuating business world.
If you currently own a franchise, this might be the time to review business plans to adapt to current conditions. Consumers’ behavior might be altered permanently. However, people still need the products and services that many franchises offer.
COVID-19 and the Newly Unemployed
The future of franchises may depend in part on the country’s unemployment rate. As many people find themselves laid off or terminated, their minds may turn toward new ways of supporting themselves. For some, a franchise might provide the opportunity to be their own bosses and never return to the corporate grind. Their eagerness to buy into franchises might help fuel the future.
Your Future in Franchises Depends on Doing it Right.
Always seek legal advice before signing any franchise agreements. Remember that the agreements prepared by your potential franchisor likely favor the franchisor, not you. It helps to have someone keep your best interests at the forefront.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.