There have been millions of business start-ups around the world in 2020, despite (or in some cases because of) the COVID-19 pandemic. This included a significant increase in interest in becoming self-employed through a franchise agreement.
For some, becoming their own boss was a reaction to losing their job, while others seized the opportunities of start-ups to meet the needs of consumers and businesses during this difficult time.
To give you an idea of ââthe rate of new business creation: in France, 84,000 new businesses were launched in one month (October); the UK recorded a record 770,000 new start-ups in 2020; the United States saw a 95% increase in new commercial applications in the same year; and Japan saw a 14% increase in business start-ups between 2019 and 2020.
For many entrepreneurs during this time, the safest and most cost-effective way to start a business was to maximize the benefits of franchise agreements. If this is a route you are also considering, your research may well include which franchises were most popular during the pandemic?
Logistics and delivery
Unsurprisingly, pickup truck franchises for sale have grown in importance due to the widespread need to get more direct-to-home deliveries during COVID-19 restrictions. This is expected to be a continuing franchise trend in 2022, as many consumers now rely on brick-and-click businesses to deliver to their doorsteps.
Courier franchises, and those related to issues such as driver training or transportation, will also continue to be popular. The growing demand for delivery services has coincided with driver shortages in many countries. If you can help with a relevant B2B franchise, you’ll have an enthusiastic, ready-to-go customer base.
The pandemic has led to a significant acceleration in remote and flexible work models for large companies, and a corresponding increase in home business start-ups. Fortunately, the franchise opportunities that involve working from home are diverse and plentiful, including an attractive array of low cost franchise deals.
During the economic uncertainty created by the COVID-19 crisis, the option of being your own boss with little or no capital investment in premises, vehicles or equipment was naturally a big draw.
Home franchises are also the perfect start-up path for parents and anyone who wants to control the time they invest in their new business. Especially if you combine the convenience of working from home with the satisfaction of the increased demand for certain services, such as educational franchises.
Or, the prospect of creating a home-based product franchise, selling items shipped from the manufacturer directly to customers, has also proven appealing.
While the pandemic has resulted in increased reliance on technology, IT-related franchises have naturally proven to be popular and likely to be successful. This could include providing individuals with computer training or repairs, or technology franchises for corporate IT support.
There are also franchise opportunities in software development to match the great push for companies to digitize, connect and integrate their business systems.
Retail Franchises Naturally, fast food franchises have continued to dominate the list of the most popular franchise options. However, as more and more consumers now use their technology to shop online, there has also been great interest in starting businesses in other aspects of retailing.
This popular pandemic type of franchise is another that covers a wide range of options, including turning a hobby or passion into a way to make money. For example, arts and crafts franchises and franchises selling pet products have turned out to be a dream come true for some people who have taken the opportunity to be their own boss.
Health and Fitness Franchises
This is another natural result of the pandemic. Growing awareness of the need to stay fit and healthy has inspired new start-ups for some time, but the coronavirus crisis has added a new degree of urgency!
This has made options such as sports franchises, gym start-ups, nutrition-based businesses, and health management franchises very attractive.
How to choose from popular pandemic franchises
Here are some of the categories of start-ups that have proven to be dynamic during the pandemic. However, keep in mind that global trends have created a ready market for customers in other industries, such as healthcare franchises, to deal with an aging population. Additionally, you need to balance the current popularity of the franchise with the needs of consumers or businesses in your specific location.
Finding the best franchise depends on your skills, work experience, and how much money you have to invest, as well as your preferences and the level of profit you hope to make. For example, your expectations may include setting up a multi-site franchise operation (now or in the future) in one of the most popular industries. Or, you can keep your eyes on long-term gains and seek out an investment that offers strong franchise resale potential.
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