Who’s Shopping for a Franchise Now?

As we all know, these are interesting times. Much like the financial meltdown in 2008 … double digit unemployment, closing of businesses large and small, and an anxious population with no clear understanding for it all. It was a rough and scary time to be in business.And yet, the franchise industry powered through, adapted, and largely remained a calming voice of reason regarding business cycles and to some extent, that confidence and the historical perspective helped pull us out of that crisis and those empty strip malls filled up within a few months. If you were in this industry and were paying attention, you would have noticed weaker businesses go away and be replaced largely with franchises. And that was during a time when money was tight due to the banks epic failures and needing to be bailed out.True entrepreneurs seem to fully understand the opportunities embedded in this crisis. Here are some to ponder:
  • This crisis will end-probably before the average time it takes to research, present and award a franchise.
  • When this does end, there will be prime retail space available (for a short time), loans to be made, and an extremely hungry US consumer ready to spend again.
  • There is money to start a new business right now. At one point in the 2008 crisis if you wanted to borrow $100K, you’d need to pledge $100K in assets against that loan. So you could borrow the money, but only if you already had it. Not too helpful and very different today.
  • The federal and state governments are falling over themselves to pass laws to increase the cash flow for businesses. There are already bills being voted on to inject Trillions (yes, Trillions) into the economy.
  • We are in an election year. If you are a political student, you’ll know that those in power are gleeful to spend tax-payer dollars to help sure up the economy and their re-election.
  • The “Impact For Small Business Act” has secured an additional $50 Billion in SBA funding for the remainder of 2020 alone. That is a lot of money and it appears that it will be gobbled up by entrepreneurs. And they aren’t going to wait until the “all clear” bells rings. They are researching their options now.
  • In 2008 it was an unfriendly business environment and one that got increasingly difficult while things got sorted out. Today, our banks are in a better place and prior to a virus taking us down for a bit, we had too many jobs and not enough people to fill them!
The pet service industry is adding viral resistance to our appeal. We proved resilience with the financial recession and now a national pandemic. Nothing has changed, pet owners are passionate folks and people love their dogs! With the heightened focus on cleanliness lately, Splash and Dash locations not mandated to close by local law have seen great success by the numbers since the outbreak began:
  • Southern Pines, NC: Same Store Sales increased 30% with 54 new customers in the last 3 weeks alone.
  • Des Plaines, IL: In the midst of a temporary shut-down, Same Store Sales are up 24.3%. Clean Dog, Healthy Home!
  • Meridian, ID: Same Store Sales increased 18.5% as they still remain open under essential services, pet care.
In closing, what you do today will set you up for a prosperous future.