The Resilience of the Franchising Industry during COVID

The effects of the COVID-19 pandemic have been devastating for many businesses worldwide. Some have been hit harder than others, but it can’t be denied that those that have benefited from the pandemic are in the minority. However, they do exist, and the franchising industry is a great example, continuing to prove its resilience during difficult times through its low-risk, innovation-focused nature and extraordinary levels of franchisee support.

What Makes the Franchise Model Resilient?

Several factors contribute to the franchising industry’s resilience. First, franchises have recognizable brands with global brand awareness , making them more likely to survive during times of uncertainty. In addition to this, they are more readily equipped to handle uncertainty in general. The franchise industry tends to embrace innovation; thus, in times like the COVID-19 pandemic, franchises are able to quickly and effectively adapt, creating solutions that can be harnessed throughout the franchise’s network. This, combined with the support and know-how that franchises provide, gives franchisees the resources they need to better navigate the challenges posed by rapidly changing market conditions.

Growth in the Franchising Industry during COVID

Although franchise growth differs from country to country, an overall trend of positive growth can be observed. In the United States alone, it’s estimated that over 25,000 new franchised establishments will open in 2021, bringing the number of overall establishments above pre-pandemic figures ( One large factor behind the industry’s growth is that the pandemic caused unemployment among high-salary job holders, creating an influx of experienced individuals with business skills and investment capabilities. Many of these individuals have looked to franchise ownership as a low-risk income generator, especially because interest rates are low and banks are generally willing to lend to franchises given their historically high success rate of over 90% (Palo Alto Online).

MBE during the Pandemic

So far, the business services industry has fared better than many other industries during the pandemic. As a worldwide provider of pack & ship, micrologistics, printing, and marketing solutions, MBE is no different. The changing conditions brought forth by the pandemic led MBE to adapt and focus more on emerging areas of opportunity, such as eCommerce. Combined with MBE’s vast network of capable entrepreneurs and franchisee support services, these key adaptations have contributed to MBE’s growth during the COVID-19 pandemic.

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MBE provides very good business opportunities in multiple countries. To learn more about the opportunity, contact us and we will provide you with more details on available opportunities.

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