Unfortunately, job security is not a guarantee in today’s economy. In fact, mass layoffs from major companies don’t seem to come as a surprise anymore. In the first month of 2024, 776+ companies had already announced mass layoffs, and 5487+ companies have announced mass layoffs since January 1st, 2023 (Intellizence).
It goes without saying that being laid off from a job comes with significant emotional and financial impacts. While the degree of impact will depend on each individual and their circumstances, most people who get laid off will need to find another source of income. The traditional option would be to apply for other 9-5 jobs that offer a comparable wage. However, alternative options like franchising are worth exploring for those interested in owning a business.
5 Reasons Franchising Might Be Your Next Best Move
#1 – Stability in a Turbulent Economy
When the economy suffers, companies big and small have to find areas to make cuts in order to survive. This usually includes the hard decision to layoff what they deem as non-essential employees.
While franchised businesses are not immune to economic downturns, they are uniquely stable even in a turbulent economy. In fact, FranNet did a study on the 1,260 North American franchises they helped open between 2006-2010. Despite this being a time period just before and during the Great Recession, the study found that:
- 91.2% of the franchises were still in business after two years
- 85% of the franchises remained open after five years
One of the contributing factors to this success is that franchises offer an already established brand and customer base. Of course, not all franchises are created equal, so it’s important to find one that has built a solid brand. If you buy a franchise with a solid brand, then it will come with a proven business model, brand recognition and trust, market presence, training programs, and more. These benefits greatly increase your chance of success as a franchise business owner.
#2 – Training and Support
Franchising is also an attractive option for aspiring business owners because of the comprehensive training programs and ongoing support provided by franchisors.
Training topics include:
- Marketing strategy and brand positioning
- Sales processes
- Technology and business systems
- Customer experience management
- Bookkeeping
- Compliance requirements
- Choosing business location and lease negotiations
- Recruiting and managing employees
- Purchasing equipment and maintaining supplies
- Operational fundamentals
- Financial management
Support areas include:
- Access to supplies
- Help with training
- A boost in marketing and promotional efforts
- Financial assistance
- Administrative support
- Help with finding a location
- Protocols and standards
- In the field support
- Business coaching and annual conventions
If you’ve recently been laid off from your job, then it’s definitely worth considering the option of buying a franchise.
#3 – Proven Business Model
There are unique advantages to franchise ownership when comparing it to starting a business from scratch. Not only does it come with invaluable training and support opportunities, but it also gives you access to a proven business model with a track record of success. While success is never guaranteed, franchise ownership is certainly a less risky option for business ownership because you have a blueprint to follow.
#4 – Financial Benefits
In many cases, buying a franchise can provide access to more financing options because they’re less risky investments in the eyes of lenders due to their established business models, proven track records, etc. Some franchises even offer their own financing option.
A franchise network also provides economies of scale, which allows franchisees to access bulk purchasing discounts, centralized marketing campaigns, and shared resources that can help lower operating costs and improve profitability.
The proven track record of success and economies of scale that come with owning a franchise also gives the potential for higher returns on investment.
#5 – Flexibility and Autonomy
Franchise ownership is a good balance of having to adhere to a structure while also having entrepreneurial freedom. After all, the franchise structure only serves to benefit the franchisee. But franchising also allows for flexibility and autonomy among franchisees through the day-to-day operations, local market adaptations, schedule flexibility, innovation, and more.
There are also opportunities for growth and expansion within the franchise system through multi-unit ownership, territorial expansion, diversification of offerings, conversion opportunities and more.
FranNet Success Stories: From a Layoff to Franchise Ownership
The idea of buying a franchise after being laid off from a traditional job is not a new one. FranNet has several examples of clients who have successfully transitioned from a layoff into franchise ownership. Check out the following stories:
If you’ve been recently laid off, consider making franchise ownership your next step. FranNet’s franchise consultants will match you with the right franchise brand and walk you through the process from start to finish. Our services come at no cost to you! Schedule your free consultation today to get started!