IN THE NEWS
Why Entrepreneurs Are Investing In Service-Based Franchises
“The Great Resignation” is the term for the large numbers of employees who, since lockdown, quit their regular jobs after realizing they no longer wished or needed to work for someone else. The most cited reasons for this exodus include wage stagnation amid rising cost of living, limited opportunities for career advancement, uncomfortable work environments, lack of benefits, commute time, inflexible remote-work policies, and long-term job dissatisfaction.
However, while the popularity of entrepreneurship, working for oneself or having a home-based business spiked as many people accustomed to working a 9-5 job decided to become their own boss, self-employment has more broadly declined since the pandemic. Statistics Canada data shows that many small businesses do not survive their first year, and about 50% survive for only five years.1 This data speaks of the high risk involved with starting one’s own business and points to why more entrepreneurs have been turning to join franchises.
Many new business owners opt to become franchisees because of the level of support that franchise systems can offer in terms of set-up, marketing strategy, business planning and development. Established franchisors bring a pre-determined level of brand recognition and trust to new franchisees. Having immediate access to a reputable company name attracts new clientele and allows the business to get up and running more quickly. Franchisees are given support, guidance and experience to help avoid common pitfalls of starting a new business and to grow a successful and thriving enterprise.
Some service-based franchises are called “recession-proof” because they provide services that are always in high-demand despite economic fluctuations. Businesses and homeowners, for example, will always require certain services, such as cleaning and property repair.
Franchise businesses that offer property services such as residential and commercial cleaning are thriving, and many continue to experience a boom due to the increased demand for higher standards of cleanliness and sanitation that emerged across all sectors, both during and after the pandemic. The assurance of a steady rise in new business also means these franchises are scalable, and therefore even more secure as investment opportunities.
A corresponding trend, and one that continues to expand business for property-service industries, is that even post-lockdown, people are spending more money on maintaining, transforming and improving the interiors where they live, work and play—therefore also increasing opportunities for niche service-based brands.
Service-based franchises require lower entry-level investment compared to other types of franchises such as food and retail. As a rule, service-based businesses also have much lower overhead costs as many do not require a major store front commitment and can often be run from home. Additionally, if the business is structured on a by-appointment basis, it can allow for the convenience of flexible hours.
Service-based franchises, such as residential and commercial cleaning franchises, offer numerous benefits for individuals seeking successful franchise opportunities. The MODERN Territory Franchise provides an ideal offering for aspiring entrepreneurs who are looking for the best franchise opportunities in the market today.
---
