In the wake of economic disruptions caused by the Coronavirus Pandemic, business analysts tracking online searches reported a surprising statistic: an uptick in interest in franchising. Today, this form of business model holds wide appeal. What factors might have contributed to the recent resurgence of interest in franchising?

Indirect Evidence of Public Interest in Franchising

One reason some business analysts believe franchising gained popularity during April, 2020 in the United States relates to Internet search trends. When they examined popular keywords online searchers used to hunt for franchises in the Google search engine, observers noticed the number of these searches declined abruptly in early March. However, this search topic re-surged towards the end of the month. During April, the volume of online searches centering on franchising expanded significantly.

It proves difficult to draw concrete conclusions from raw search data. Nevertheless, it does appear public interest in franchising at this time remains quite strong. Coupled with high unemployment statistics currently in many states, it appears plausible large numbers of laid off workers will consider starting their own franchised business ventures. At least three factors possibly contribute to this trend nationally:

One: The Pandemic Created Significant Job Market Disruptions

The COVID-19 pandemic coincided with one of the most abrupt transitions in employment levels in history. During early March, the USA enjoyed one of its lowest unemployment rates since statisticians began collecting data about this issue. By early May, unemployment rates had skyrocketed by a staggering 3000%.

Two: Franchising Offers a Prepared Business Roadmap

One distinct advantage of most franchises involves the provision of tested business models and procedures. Franchisees receive specific directions (and often franchisor assistance) in developing new ventures.

Three: Many Franchises Facilitate Self-Employment Options

In many cases, a franchise provides a source of immediate self-employment for franchisees. While specific franchises differ in terms of startup time frames, many do encourage new franchisees to invest sweat equity (as well as capital) in their businesses. This aspect of franchising likely appeals to owner-operators seeking hands-on managerial roles.

An Auspicious Business Trend

Whether considering a cell phone repair franchise, a fast food outlet franchise, or a gift basket franchise, numerous entrepreneurs maintain a keen interest in developing successful enterprises! It appears likely significant numbers of new franchised businesses will commence this year.