The Franchise Times recently published two articles highlighting franchise systems that experienced growth during 2020. While the fact that a franchisor experienced year-over-year growth isn’t normally newsworthy, 2020 wasn’t a normal year. As we head into 2022 with the COVID-19 pandemic still playing a prevalent role in our day-to-day lives, prospective franchisees may benefit from considering the sectors that have fared best in the pandemic so far. Franchisee attorney Jeffrey M. Goldstein explains.
Fast Casual, Delivery and Real Estate Led the Way in 2020
According to the Franchise Times, of the 10 franchises (among the largest 200 franchises) that experienced the largest overall unit growth in 2020, seven were fast-casual and delivery restaurants. The Franchise Times also reports that the two franchises that experienced the largest percentage unit growth in 2020 were in the real estate sector.
When looking at total sales growth during 2020, four of the top 10 are fast-casual and delivery concepts and two of the top 10 are real estate brokerage franchises. The top 10 also include a home improvement franchise (Ace Hardware) and a custom home building franchise (G.J. Gardner).
The other franchisors on these “top 10” lists are spread among full-service gas stations, hotels, insurance, health care and cleaning brands.
In hindsight, none of this is particularly surprising. While people stopped eating out in 2020, they didn’t stop eating entirely, and the skyrocketing real estate market has caused many people to consider relocating despite the pandemic. Many people have used their newly-acquired ability to work from home as an opportunity to relocate as well.
Should You Consider a Fast Casual, Delivery or Real Estate Franchise?
Given these statistics, should you consider a fast-casual, delivery or real estate franchise? So far, analysts are suggesting that the trends that propped up these sectors in 2020 will continue into 2022. But, will they continue beyond next year? Buying a franchise is a long-term commitment, and prospective franchisees need to be careful to avoid pouncing on short-term opportunities.
Of course, the fast-casual, delivery and real estate sectors aren’t exactly new. In fact, they are among the most enduring sectors in franchising. So, even if franchises in these sectors experienced a “pandemic bump,” they could still present viable franchise opportunities in the post-pandemic world.
When buying a franchise, there are several factors to consider. This includes not only market factors, but legal, financial and other practical factors as well. Prospective franchisees need to make informed decisions, and they need to choose opportunities that they believe offer stability, reasonable terms and the potential for long-term success.
Request a Free Consultation with Franchisee Attorney Jeffrey M. Goldstein
If you are thinking about buying a fast-casual, delivery or real estate franchise (or any other franchise) in 2022, franchisee attorney Jeffrey M. Goldstein can help. To schedule a free and confidential consultation, call 202-293-3947 or tell us how we can reach you online today.