Let’s face it.  We all remember 2008, and we definitely cannot forget 2020.  While two very different financial experiences, they both had a significant impact on both our psyche and our pocketbooks.  Unfortunately, it appears another recession is imminent, and those emotions can easily come rushing back.

The good news is we have learned a lot since those last two experiences.  We know that franchising thrives in a recession and can provide a greater support system than if you were operating as an individual business.  While a new economic downturn is on the horizon, there is no need to panic.  Here we go over why franchising might be the ideal way to shield yourself from an economic upset.

Greater Risk, Greater Reward

It might sound counterintuitive to start a business when times are tougher, but there is actually significant upside.  Believe it or not, some of the most successful companies started in a recession.  From Microsoft to Disney, some of the biggest names got their start in an economic dip.

The concept is simple.  Greater risk can lead to a greater reward.  And with the bonus of it being a franchise, the risk is actually a smarter one, because this is a concept that has already been proven successful.  You also have the support of a system who is incentivized by your success.

Take Control of the Wheel

Probably one of the most unnerving things in a recession, especially if you are still in the corporate world, is the feeling of losing control.  Is my company equipped to withstand a recession?  Are layoffs on the horizon?  Do I need to start looking for a job?  So many variables can have a direct impact on both your future and your family.

The cool thing about franchising is that you have the ability to control many of these variables.  No one gets to decide if you will have a job tomorrow, you are your own boss.  There can also be a special satisfaction in being directly responsible for your own successes and failures, and not at the liberty or discretion of somebody else.

Build Your Own Career Cushion

While this might be a longer play, if you are just now thinking about getting into the franchise game, franchising provides the ability to hedge your bets against a recession with multi-unit ownership.  Multi-unit ownership allows you to benefit from economies of scale.  

Buying more than one location can allow you to take advantage of lower per unit fees.  And with multiple locations, you can hire one manager to oversee them all and leverage your size to gain better deals with both suppliers and contractors.  Overall, you have better per unit economics which will be crucial when it comes to surviving a recession.

It Won't Be Easy, But It Will Be Worth It

No one disagrees that starting a business is hard.  And starting a business in a recession can seem even harder.  However, with right approach, and the support of a fantastic franchise system, you might look back in a few years and find it is the best decision you have ever made. 

At Evergreen Franchise Advisors, we understand making the move into business ownership should not be taken lightly.  Whether you are just beginning your exploration process or already have several businesses under your belt, we can help you navigate wherever you are in the process.  If you are serious about making the move, we invite you to schedule a call with our team and we will guide you through the rest.