By now we all know how devastating COVD’s effects are and how it did not just threaten our health on a global scale but even our livelihoods and economies.
Before the pandemic hit us, the future of franchises looked very promising. According to the International Franchise Association, U.S. franchises were slated for a 2.8% increase which could have given people an additional 232,000 jobs in 2020.
However, a lot of franchise brands somehow survived during COVID-19’s onslaught and have thrived despite the present global climate.
Why are franchises more important at this time?
They create jobs for people.
Even though some franchises had to cut down on manpower, a lot of them were identified as essential and stayed in business, stayed profitable, and even added to their workforce. As the COVID-19 vaccine is being made available, expect other franchise brands to slowly regain their footing and momentum, and create more jobs for even more people.
Franchises are less risky for owners.
One of the advantages of owning a franchise business is the already existing corporate system that can help assist franchise owners to become more successful instead of being left to fend for themselves and figuring out what to do.
Franchisees have a strong support system in case of a financial downturn.
Since a franchise business has a strong corporate and support system to back it up, they have a greater chance of withstanding any crises and overcoming them. It already has certain systems in place that can help franchise owners endure tough times such as digital marketing for franchises at any given time and the most efficient templates to successfully build a franchise.
Franchises can keep their expenses low with volume buying.
Because most of a franchise’s supplies are ordered in larger volumes, this gives franchisees the chance to lower their overhead costs and expenses. In the face of any crisis, this helps them stay competitive.
They already have established brand recognition.
Franchise brands are well-known for their quality and consistency which gives them the upper hand over any competition. The brand recognition is enough to get them through even the toughest of times.
5 Best Franchises to Buy into in 2021
1. Dunkin’ Donuts
Dunkin’ Donuts is known the world over with its inexpensive yet delicious selection of donuts and coffee. It is reported that a DD franchise can generate anywhere between 8 to 12% net profits.
2. The UPS Store
For 19 consecutive years, Entrepreneur Magazine has listed UPS as the number one franchise brand in the U.S. UPS at present has the ability to deliver over 13 million documents a day. And because of the pandemic, their services have become more valuable now.
3. Dream Vacations
With its outstanding list of accomplishments, Dream Vacations, one of the largest cruise-vacation sellers in the U.S., is a safe bet for anyone looking to franchise a business. If you think owning a franchise will cost you an arm and a leg, think again. For as low as $3,500, you can already own a Dream Vacations franchise.
4. Ace Hardware
Ace Hardware has become a household name when it comes to hardware and other similar products. Ace Hardware offers different options to own a franchise such as merchandising and services, stock shares, and operating a small hardware inside a grocery store. With an initial startup capital of only $5,000 and great profitability, it’s one of the best franchise businesses anyone can own today.
With close to 6.5 million burgers sold per day, McDonald’s is one franchise brand that will continue to dominate the Franchise 500 charts as it has consistently ranked high on the list for years now. Owning a Mickey D’s is one of the most profitable things a business person can ever do in his or her life
As we enter 2021, there is still no certainty what our economy will look like even if a vaccine is already being distributed. Franchise businesses can help keep the economy afloat and allow more people to survive with the jobs and stability they provide.