With Covid-19 continuing to hold on as the vaccine rollout picks up momentum, the world is getting closer and closer to an exit from the pandemic. Still, the markets have taken a hit, and businesses the world over have suffered. Investing in new startups at this time is a daunting affair, despite lower interest rates and less barriers to entry.

Franchises, however, are weathering the storm better than most. Some are thriving despite the lockdowns, while others are preparing for the inevitable expansion that will come once the numbers drop, and businesses reopen. If you’re a prospective franchisee wondering whether now is the right time to get into the business, here’s a good argument in favor of that.

 

LOWER INTEREST RATES

For many industries, lower interest rates mean little to nothing at this point in time, since nobody is willing to invest in a new or existing business. This doesn’t hold true for franchising, however. The model has proven its resilience in the face of the worst pandemic in decades, and that’s a testament to its longevity. Taking advantage of current low interest rates means saving money right now, as opposed to later. Think of the interest rate of a long-term loan during pre-Covid days. Now, imagine the thousands upon thousands of dollars one can save by diving into the market right now. That saved money can easily be reallocated back into the business to help it grow at a much faster rate, or used to invest in a second location.

 

LOWER RENTAL RATES

The business real estate sector has taken quite a knock due to the pandemic, and that was exacerbated when employees were driven to stay home and work remotely. Many smaller businesses have unfortunately gone under due to the economic turbulence. It’s important to realize the opportunities that come with this, however. Hot properties in key locations are now popping up everywhere, and that’s good news for franchisees who want to cut ground on a prime piece of land. Now is the time to negotiate with property managers to seal a deal that will drive down rental costs for the foreseeable future. Once again, every dollar saved is another that can be used to strengthen your franchise location, and increase its profitability.

 

LOWER COST OF SUPPLIES

It’s also true that food, restaurant equipment and fuel costs have gone down due to Covid, which is another advantage when starting up a new franchise location. The goal should always be to minimize cost in order to maximize profit, without sacrificing quality. If the franchise market has remained the same, but the cost of individual goods has gone down, that’s a win/win for anyone looking to get into the business. That money can be spent on hiring new employees, training a GM, and passing the cost-savings onto your customers, all of which are desperate to visit their favorite franchise to enjoy a little fun.

 

FLEXIBLE FRANCHISOR FEES

Many franchisors have decided to lower their fees in order to court new entrepreneurs, and that’s a good thing. It helps to stimulate franchise growth by adding more incentive, and a sense of security for would-be franchisees who are attracted to the potential. Feel free to negotiate with your franchisor to see how flexible they are when it comes to fees. Even a modest dip in franchisor fees means extra money in one’s pocket. As we move out of the Covid-19 era, many franchises will be focusing more on the human element, and a sense of collaboration between those involved in the business. This will undoubtedly yield some very beneficial results.

We are drawing closer and closer to the end days of Covid, and once the danger has passed, scores of people will be eager to get out and enjoy life once more. Expect them to flock to their favorite franchises to enjoy all the things they used to take for granted, including a great night out. Don’t miss out on the opportunity to take advantage of this. Instead, make the decision to become a franchisee now, and reap the benefits of the points listed above. From there, the sky’s the limit.

For more information on how to franchise with St. Louis Bar & Grill, please contact us today. We’d love to discuss how we can help you open up your very own location.