With recent reports that unemployment is again on the rise as job vacancies continue to decrease1, the franchise industry has never looked so appealing to entrepreneurs looking to determine their own success. And with an uncertain economic climate continuing to influence brands’ decisions and activity, welcoming prospective business owners to the security of an established model is affirming the concept that has already helped thousands reap huge personal and financial success. Here, Chris Wootton, the Managing Director of domestic cleaning franchise Poppies, discusses why periods of economic uncertainty can be the best time for entrepreneurs to invest in a franchise brand.
It is fair to say that the doom and gloom we have been subjected to around the cost-of-living crisis has made us all second guess if business ownership is the right way to go in 2023. But fear not! Even in times of recession, the franchise model has flourished. Looking all the way back to the 1950s – when the franchise model was popularised – brands in every industry have proven the strength and resilience of the franchise model, and have continued to do so ever since. That is over 70 years of refining, development, evolution and perfection. Franchisees today never need to worry about being isolated, and prospects can rest assured that they are almost certainly joining a brand that has ‘been there, done that’.
But how do we know the franchise model works during times of hardship? Well, if we look at the last 70 years, we can see that some of the biggest economies in the world have faced some unprecedented events. In fact, in that relatively short amount of time, the world has seen 12 recessions and throughout each one, which industry has consistently remained untouched? You guessed it.
For example, at Poppies, our franchisees have the safety of joining a network that has been nurtured and developed for over 40 years. With new franchisees continuing to see the benefit of operating in a secure, supportive structure, they are forging huge success without unnecessary risk.
“The franchisor employs such an inspiring vision, and you can tell how much the rest of the franchise network believes in the brand’s mission and values,” says recently launched franchisee of Poppies of Warwick, Kuldeep Mahi. “I decided to join the franchise as the brand is authentic and trusted, has close family values at its heart and is also on the cutting edge of technology. As a franchisee, I really feel like I’m a part of the future of the industry, as well as having the chance to maximise my financial opportunity.”
One of the best things about joining the franchise industry today is simply the fact that we operate in a business scape that has seen it all. Through rigorous, never-ending business development and growth, the infrastructure that entrepreneurs are welcomed to within franchise brands has never been stronger. Not only to support a new franchise launch, but throughout the entirety of a franchise agreement and beyond, brands have years of experience to tap into to ensure that, even when new businesses look to be an uncertain investment, franchises will always flourish. The only limit is yourself! And that is certainly true today, with an impressive 93% of franchisees in the UK running a profit1.
As well as brands investing years into their own development and growth, the concept of ‘cross pollination’ is also helping them stay one step ahead of the curve. Collaboration is second nature in franchising, and this is not only applicable to franchisees sharing thoughts, ideas and innovations as a way of strengthening their brand’s reputation, but to franchisors and brands themselves. Thanks to the open, supportive nature the entire industry has adopted, brands across various industries regularly evolve in tandem, further securing the franchise industry and helping establish even stronger foundations for prospects launching franchise businesses today.
The competitive advantage franchisees are given as new business owners has never been so visible. Whether it is a cleaning business, a restaurant chain, an education provider or any other brand operating amid the diversity and excitement of the franchise industry, there has never been a better time to take control and join a brand that is solely designed for one purpose – your success.
1 Larry Elliott, 2023, UK payroll numbers fall as unemployment rate rises to 3.9%