2023 was a fabulous year in franchising. It will be a few months before the data is compiled regarding the number of new franchises opened and in what industries. If you are interested, here is the report from a year ago.
From my perspective as a 20-year franchise insider, here is what I observed in 2023:
· People long for an EXIT STRATEGY that replaces their salaries
o A business is a good option
o A FRANCHISED BUSINESS is the better option due to built-in RISK REDUCTION
· People require a “MANAGER RUN” BUSINESS to MAINTAIN their CURRENT JOB during startup
· People are completely WASTING THEIR TIME looking at EXISTING BUSINESSES FOR SALE. A good cash-flowing business with a reasonable price in the market where you live is like LOOKING FOR A NEEDLE IN A HAYSTACK.
o Most resales are fast food restaurants (see www.bizbuysell.com)
o Great cash-flowing businesses in their markets are NOT listed publicly for sale
· Two options are typical for existing businesses:
o Dogs - that never got off the ground or hover at the breakeven point
o Overpriced cash cows - as in real estate, the scarcity of supply and the overdemand of investment cash means unrealistic prices
· Stay-at-home parents and stressed spouses grinding in the corporate world long to partner in a FAMILY BUSINESS TO CREATE WEALTH.
o This is what Ash and Lou did with a manager-run fitness franchise
o This is what Reese and Rachel did with a property management franchise
For more information about the franchise highlights in 2023, here are the three most popular podcasts Exit Strategies, Meet The Team Day, and Technology from our YouTube channel @bewildlywealthy.