Franchising Is Moving: 2022 Trends to Watch
Franchising grew rapidly in 2021! Fueled by COVID’s impacts on work-life balance, access to capital, and the prices of commercial real estate, franchising became an option for many that were looking for a change. There are several factors driving franchise growth and trends to watch in 2022 as people turn to franchising as an alternative to heading back to the traditional workplace.
Economic Growth
Despite the economic effects the pandemic had on businesses, franchising gained a 10% increase, amounting to more than 26,000 new franchised locations in 2021. According to the International Franchise Association (IFA), franchises now account for 780,188 businesses in the United States, nearly 6,600 more than in pre-pandemic years. Commercial and residential services witnessed the highest growth in 2020 and 2021 with a record increase of almost 8%. It’s no surprise that franchises in home services are also taking off as people are spending more time at home and seeking to improve their living spaces. Services such as moving, clean up, junk removal, and remodeling are helping people across the US and Canada establish a more well-balanced and aesthetic home.
Location
As more families moved away from major cities to remote areas in their state or opted to move to warmer climates in record numbers, it opened more opportunities for new franchise locations outside of key metropolitan areas. According to the IFA, the top 10 states that sustained the highest franchise business growth in 2021 were:
- Ohio
- Florida
- Michigan
- Colorado
- Texas
- Georgia
- Arizona
- Virginia
- North Carolina
- Wisconsin
Alternative to Traditional Employment
Employees have been reluctant to return to traditional employment and office environments. The work-from-home model provided families a work-life balance they had not experienced before. Providing them more time to spend with family and void of daily commutes, office dynamics, and the expense of working away from home. Employees have prioritized flexibility and a work-life balance as the key motivator for seeking alternatives to traditional employment. It’s predicted more employees will continue to seek franchising as a means to business ownership as it provides flexibility, freedom, and the stability of an established business model with a proven system.
Contribution to the Job Market
Franchising is a vital source of employment for skilled workers that are often hardest hit by economic downturns. Franchising has proven to be a resilient business model leading to expansion emerging from past recessions. Despite job loss during the pandemic, franchises sustained employment for 7.5 million skilled workers and as things normalize, they are expected to increase both jobs and business opportunities in 2022.
Financing is Easier
Franchising also experienced a surge during the recession of 2008, but unlike its predecessor, franchise financing in 2021 has been easier. The success of the real estate market, personal investments in technology and crypto, decreased spending as a result of working from home, and low-interest rates have freed up capital for new business owners to finance franchising opportunities. Not to mention that securing financing for a proven franchise model has long been easier than securing financing for an independent startup that doesn’t have the proven track record for success. The influx of vacant commercial buildings has also improved franchise owners’ ability to finance brick and mortar locations at competitive prices compared to previous years.
As employees continue to trade their employment for entrepreneurship, franchising will continue to rise as an ideal option. Franchises provide a well-established, supportive, and flexible alternative to the 9-to-5 and will grow as a key player in redefining the traditional work model and reestablishing the economy well into 2022. If you are among the sea of people seeking franchise opportunities in the new year so that you can achieve the much-desired freedom and satisfaction with leading your own business to success, consider franchising with College HUNKS Hauling Junk & Moving. In 2021, College HUNKS sold more franchises than in any previous year, broke countless records, and received numerous forms of recognition. We take great pride in our brand and know that you’ll understand why the HUNKS family is a good place to be in 2022 when you review our business model.
Contact our franchising team today!