Some franchise categories have fared better than others during the COVID-19 pandemic. For example, while casual dining franchises have struggled (broadly speaking), many quick-service restaurant concepts that found ways to adapt by offering curbside takeaway and delivery have thrived. According to a recent article on Franchise Direct, child-related franchises have shown resiliency during the pandemic as well. Here, franchise lawyer Jeffrey M. Goldstein shares his thoughts on why that might be the case.
Parents Will Prioritize Spending on Their Children
Even when prices go up as parents’ disposal income goes down, most parents will still be willing to spend on their children to the extent that they can. As the article explains, parents “found out just how much they depend on child care and other children’s services franchises during the pandemic. . . . [A]s things creep back towards ‘normalcy,’ . . . children’s franchising should regain the little footing it lost as families begin to fill in their outside schedules again.”
The children’s franchise category is extremely broad. From childcare to hair care, and from tutoring to summer camps, there are franchises in most – if not all – areas of children’s services. Many child-related franchises continued to see steady demand during the pandemic; and, among those that struggled during lockdowns, many are seeing parents come back in droves now that they are getting back to work and they feel safer having their children around others. Sure, some parents want to get their kids out of the house so they can get a break; but, for the most part, parents are spending because they want to make sure their children’s needs (and to the extent practicable, their children’s wants) are fulfilled.
The Pandemic Has Created Some New Opportunities for Children’s Franchises
Not only have many children’s franchises shown resiliency during the pandemic, but some have thrived by seizing on the opportunity to fill parents’ new needs. For example, the article quotes one industry insider as saying, “supplemental childhood education and tutoring programs have seen substantial growth over the last year.” Even as children transition back to in-person learning, many parents who see value in remote supplemental education are likely to continue to patronize the franchises upon which they have relied during the pandemic.
Of course, no business is immune to economic challenges, and there is no guarantee that children’s franchises will, on the whole, continue to see success in the future. It is very possible, if not inevitable, that many parents will revert to their old routines. But, for individuals who are interested in the franchise model and who have a passion for working with children, now may be as good a time as any to consider pursuing a franchise opportunity. This certainly cannot be said for all categories within the franchise industry.
Request a Free Consultation with Franchise Lawyer Jeffrey M. Goldstein
Are you considering a children’s franchise? If so, it will be important for you to obtain a franchise business review from an experienced franchise lawyer. To learn more, call 202-293-3947 or request a free consultation at the Goldstein Law Firm today.