Why 2021 May Be the Year to Franchise Your Business
Blood, sweat, and tears went into that business of yours. Hours upon hours of negotiations, planning, decision-making, and the like are the foundation of your operation — 2021 is the year to make your business worth more.
This year, more than ever, we are seeing business ownership thrive. My company, FMS Franchise, is seeing record-breaking franchise sales that are topping any numbers from the past decade. When mulling over the decision on whether to franchise your business, consider this: you can scale your business and expand your brand’s reputation using other people’s money. Without upfront capital from you, other people can come in and pay you to operate your brand, while you rake in monthly royalties.
This isn’t a free ride, of course. As a Franchisor, you will be responsible for supporting your franchisees to ensure success. Support includes things like troubleshooting operations or researching ways to boost unit-level profitability, but this work isn’t without great reward. Plus, with the proper vetting process, your franchisees will be more than capable business owners. Once you’ve made the choice to franchise, taking your time in selling to the right people will make less work, and more income, for you down the road.
This brings us to our next point: the market is brimming with high quality buyers. Firstly, we can’t discuss the buyer pool without mentioning Millennials (those born between the early 80s to the mid 90s). This generation tends to be tech-savvy. They also tend to see the normal 9 to 5 that they watched the Boomers or Gen X work through as less than satisfying. Around 84% of Millennials, according to a survey of 1,000 Millennials, believe that entrepreneurship is more satisfying than working for someone else. Add that with 1 in 3 who already bring in income from their own business, and we see that there’s tons of opportunity for franchise sales within this generation alone. Beyond Millennials, in general terms there are tons of people seeking to own their own business on the heels of the shutdowns of 2020. Necessity is the mother of invention, evident in last year’s start-up boom.
Companies like Firefly Forts, a concept created during the shutdown, were born during economic instability, naturally producing a recession-proof model that feels stable for buyers.
Finally, let’s talk about the market growth. By the end of this year, the franchise market will have already returned to 2019 levels and beyond — FranData predicts a 7 per cent economic contribution from franchising in 2021, with franchise establishments growing at a rate of 3.6 per cent. As franchised businesses banded together last year to help troubleshoot the unprecedented restrictions, the free flow of exchanged knowledge and ideas fortified franchised concepts in new ways. Site availability and low interest rates have also contributed to the buyer pool as individuals find it more affordable to go into business for themselves through franchises.
Should you franchise your business?
It’s a decision worth considering, but don’t do it alone. My team and I can take a look at your model, your concept’s viability, and how replicable it is and help you make a choice that is best for you and the future of your company.
Chris Conner has worked in the franchise development industry for almost 20 years and helped over 600
brands franchise their brand and develop franchise distribution channels. Mr. Conner’s work has been focused
on working with small to mid-sized businesses in all industry segments including Professional Services, Food
Service, Retail, Automotive, Fitness, Healthcare and Manufacturing. He founded Franchise Marketing Systems in 2009 after having spent his first 8 years working for a franchise development firm in Chicago. Mr. Conner’s work has been largely focused on strategic planning and franchise marketing for new and emerging franchise brands.
Today, Franchise Marketing Systems is a team of 27 franchise consultants based in the U.S. and Canada and supports brands around the world to grow and scale through franchise expansion. He has a Bachelor’s Degree in Marketing from Miami of Ohio and an MBA from DePaul University.
Get a free consultation through FMS Franchise by visiting: