Welcome to 2022: let’s get growing.
The last 18 to 24 months of the pandemic have been challenging for many businesses, but as we head into 2022, data shows the franchise industry is thriving. After nearly two years of economic uncertainty, more and more people are following their entrepreneurial dreams and taking control of their destiny through business ownership. Choosing a franchise brand helps to alleviate some of the fears and the unknowns of starting a new concept from scratch. It provides an estimate of initial and on-going investment, ways to find and retain employees, branding and local marketing that drive growth, in addition to a business model that has been tested. As a result, interest in franchising is reaching an unprecedented high, and 2022 is set to be a year of major franchise growth.
In 2022, franchisors need to focus their efforts on appealing to the growing pool of prospective franchise owners. Whether it is creating a strong marketing plan, investing in public relations, refining a franchise sales website or putting together an expert franchise development team, franchisors need to ensure they have the systems and materials in place to successfully reach new candidates.
For example, more and more brands are experiencing increased same-store sales and average unit volumes due to a pandemic-fueled pent-up demand for goods and services. Franchisors need to spread the word about these trends and the well-positioned nature of their franchised business model.
According to a report entitled The Value of Franchising from International Franchise Association (IFA) and Oxford Economics, franchise brands: “drive 1.8 times higher sales than comparable non-franchise establishments; provide 2.3 times as many jobs than their non-franchise counterparts; pass their success on to employees in the form of higher wages and benefits and offering a greater opportunity for advancement” – typically paying 2.2% to 3.4% higher wages and creating a more diverse work environment.
In addition to seeing higher sales, many franchise brands have been adding new members to their leadership teams and building out their organizations as part of their comeback strategy over the past year. These executives and industry professionals want to see the brand grow and are there to help expand the business with fresh ideas and perspectives. As these team members find their footing and start to take the reins in their new role, franchise concepts across the board are positioned for major growth moving into 2022.
Overall, franchisors have built incredibly strong relationships with their internal teams, their franchisees and their customers over the past few years as they worked together to overcome the challenges of the pandemic. Now, the franchise industry is stronger than ever, Franchisors have the opportunity to leverage the strength of the industry and take their brand to the next level.