Why Now is a Good Time to Franchise Your Business

Franchising has proven to be an effective business model for entrepreneurs looking to expand their operations and grow their business. But is now the right time to franchise? Mark Siebert, CEO of iFranchise Group, advises that if you own a business that’s doing well in today’s market, it’s a good time for you to look into franchising your business. Here are a few key drivers that can lead to franchise success.

Unemployment Levels

When there are high levels of unemployment or an increased number of people insecure in their current job, franchise sales tend to go up. Franchising is an attractive path in these situations as it provides a great opportunity for people to be in business for themselves, but not by themselves. This gives them greater control over their careers, while having the support of an already established business. 

Interest Rates

Today’s low interest rates provide prospective franchisees the opportunity to borrow at better costs. The low cost of capital, combined with the rising value of assets, increases the purchasing power of people looking to buy a franchise. This, in turn, increases the likelihood of growth for franchisors.

Prime Property Opportunities

While some businesses have thrived during the pandemic, a good number have also had to shut down, leaving vacant properties that landlords are now often leasing at sub prime rates. This is the perfect time for businesses with brick-and-mortar locations to take advantage of these prime property availabilities.

Today’s current environment provides a great opportunity for franchisors to grow their system. With all these factors at play, Mark Siebert boils it down to this: the key is going to be that the business model has to work for the franchisee. If you’re planning on franchising, the first question to ask yourself is, “does the business model work and will my franchisee be successful?”

Learn more about what it takes to successfully develop a franchise business at CFA’s Franchise Your Business Seminar on February 10, 2022. This virtual seminar led by industry experts will take you step-by-step through everything you need to know to franchise your business the right way.