As this March marks one year since the COVID-19 pandemic swept the U.S., some franchises have not only survived, but also thrived, despite these troubling times. No one knows this better than Alesia Visconti, president and CEO of FranServe Inc., the world’s largest consulting and expansion organization.
“At this time last year, business owners were facing unprecedented challenges and worried if they could survive. What we’re seeing a year later is that many franchises have actually grown,” explained Visconti. “They are proving to be pandemic resistant.”
FranServe’s network of more than 600 Franchise Consultants has resulted in new business relationships for franchise brands because of an influx of budding entrepreneurs who sought new career paths in a tumultuous year.
FranServe’s recent successes mirror findings in the 2021 Economic Outlook Report released by the International Franchise Association (IFA) last month. Not only do IFA’s findings predict that franchising will yield 26,000 new locations and 800,000 new jobs this year, but the association also projects that franchising will contribute $477 billion to the U.S. gross domestic product.
“The pandemic has created winners and losers because of evolving consumer preferences, current economic conditions, and government regulations,” stated the report, which analyzed dozens of industries and found tremendous growth across numerous market segments despite the pandemic. The commercial and residential services sector experienced the most growth since the start of the pandemic, according to the report, which attributes “soaring residential construction activities” to the spurt.
“Coronavirus has made people spend more time at home, so people are spending money on home improvements,” said Visconti. “Home improvement franchises have been working nonstop over the past year.”
Not only have traditional home improvement brands that offer services such as roofing and painting thrived but new demand for disinfection and sanitation has skyrocketed in the wake of the pandemic as well. The IFA projects that this segment in franchising will grow this year by 8% and expand to a whopping $53.3 billion industry.
Another market that experienced growth over the past year was real estate. Low interest rates as well as an increased demand for housing inspection services and property management services have helped expand the real estate sector. “We noticed an uptick in interest in property management brands and other opportunities associated with real estate,” said Visconti.
Retail food, products and services, the second-largest sector in franchising, also demonstrated growth last year based on a number of establishments, according to the IFA report. Retail sales during this period also grew in the automotive, health, personal care and home improvement sectors.
“There are certain products and services that people will always need, regardless of the economy. Getting your car repaired, for example, is not something most people consider a luxury these days. That means an automotive brand is not going to be dealt a blow when hard times hit,” Visconti explained.
Business services are also on the rise in franchising. Information technology consulting firms, marketing and HR franchises all grew during this time.
“Many people started working from home for the first time because they had to, and now they are really finding out working remotely is for them,” Visconti said. “For many, it’s been a wake-up call,” she continued. “They see now is the time to move forward and take control of their future. Corporate America is not the haven they once thought it was.”
While restaurants may have been hit hardest by the pandemic, there was a silver lining for franchises, especially quick-service restaurants (QSRs), which as a category fared better than their full-service counterparts. Food franchises with drive-throughs or delivery services also managed to defy the odds during the pandemic, as people sought alternatives for dining out.
“With so many options to choose from, aspiring business owners – even in these tough times – are finding that many brands have proven themselves to be resistant to this pandemic,” Visconti said.
“We love helping people fulfill their dreams by finding their perfect franchise fit, and now is the perfect time to do so.”
For more information regarding FranServe’s services or franchise consulting opportunities, visit franserve.com or connect@franserve.com.
– Alesia Visconti
Alesia Visconti, CFC, is the CEO/Publisher of Franchise Dictionary Magazine and the CEO of FranServe Inc., the world’s largest franchise consulting and expansion organization. She has 20 years of experience as a C-level executive, driving organizational development and taking companies to the next level. An author, professional speaker, and entrepreneur, her motto in life is “Work hard, play hard, help others, repeat.” As a self-proclaimed nerd, Alesia loves all things “superhero.”