Launching a business represents risk. Entrepreneurs are putting significant amounts of money on the line. Add to that the traditional ups and downs in the economy. One minute, the market is booming. The next minute, a recession hits.
Nothing impacted businesses nationwide more than the COVID-19 pandemic. Enterprises throughout the United States were either limited in their operations or forced to close temporarily. Many adapted by incorporating online ordering and curbside pickup.
While some survived the forced closings and other restrictions, many businesses shuttered their operations permanently. Emerging from the global health crisis, franchises seem to be as strong as ever. In fact, 2020 seemed to have little effect on the franchise industry.
A new source of income following job losses
One factor seems to be the growing unemployment rate. Many people lost their jobs, forcing them to take stock of what they wanted to do next. The trauma of a layoff led many to explore the option of franchising as their new form of income, taking control of their own destinies.
Education franchises, in particular, are doing well after schools closed down in response to the growing coronavirus spread, forcing students to transition to distance learning with the help of their parents. Startling statistics revealed that many students fell behind, and the lack of socialization only made a bad situation worse. Private education companies can fill the void and help children get caught up and give their parents peace of mind.
In addition to increased interests in franchising, prospective buyers seem to have a sense of urgency in launching their business operations. Some statistics are revealing that prospective franchise owners are signing contracts one month earlier than usual.
As the economy opens up, franchisors are likely to see more interest in their enterprises. While there is anxiousness among budding business owners, rushing the process is not recommended. Attention to detail and the help of a franchise law attorney can make a significant difference.
*NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post.