We've all seen the headlines."Millions of Americans quit their jobs during a movement now known as The Great Resignation." Over 3% of the American workforce said see ya later to their 9-5s.
The pandemic put a lot of things into perspective for many people, especially what they were doing with 40+ hours of their week. According to the Harvard Business Review, these huge spikes in turnover weren't just seen in low-wage workers. "Professional and business services also registered a high quit rate and considerable growth in that rate."
Fed up with rat race burnout, successful employees quit in droves, but where were they going? Many took part in "The Great Renegotiation" or "The Great Reshuffle", finding more fulfilling gigs. Others took the leap to business ownership, and more specifically, franchise ownership.
According to Franchising.com, 2021 was a remarkable year of growth for the franchise industry. Check out some of their stats:
- Explosive rebound of franchises' economic output to nearly $788 billion (16.3% increase from 2020)
- Franchise employment increased by 8.8% to nearly 8.2 million employees
- Coming off a pandemic, the number of franchises established saw a 2.8% growth rate
It's clear franchising continues to explode, but first, let's talk about why. We've said it once, and we'll say it again. Franchising is the safer way to build a business. It's the safest path to control your future, find your own freedom, and really live life on your own terms. It provides an opportunity for all kinds of people to become business owners with risk reductions like:
- Proven Success & Franchisee Validation
- Exceptional Systems & Structures in Place
- Strong Marketing & Customer Acquisition
- Powerful Partnerships & Group Purchasing Power
- Recurring Revenue Models
We talk in-depth about why franchising has exploded in the last few years in our YouTube video, Franchising vs. Starting Your Business: Which Is Right For You?
We could go on and on, but don't just take our word for it. Many people are starting to recognize franchising as the safer way to build a business. Major publishers are seeing the shift from the desk job to franchise ownership, like in this article from Entrepreneur, Where Are People Going In the Great Resignation? Many Are Buying a Franchise.
"It makes sense: Franchising provides a kind of ready-made business, where aspiring entrepreneurs can join an established brand and adopt their system. That can be perfect for someone who has left a corporate job, does not have a business idea or the knowledge to build something themselves, but still wants to be their own boss."
It's clear that franchising provides proven systems and structures for those looking to start a business, but why are corporate employees taking the leap? When asking them why they want to buy a franchise, we've heard variations of the following quote from Sidekick clients numerous times over the years.
"I've built a lot of skills during my career, and it's time to use them to make my own money."
Franchising allows corporate employees to take those skills they've been honing and developing throughout their career, and start building wealth for themselves. They want to start creating generational wealth for their families and build something they can hand down to their kids.
We've seen all kinds of career backgrounds become incredibly successful in franchising. From sales and marketing, to healthcare, to construction: they found their franchise fits.
Another reason franchising is drawing huge numbers from corporate America is funding. We all know starting your own business requires huge investments with no guarantee of returns. With franchising, there are many different funding routes you can take, all backed by proven financials in each brand's FDD (the strong brands anyway). When it comes to funding strategies, one option we love here at Sidekick is the ROBS program, or 401k rollover. This allows you to access your 401k money without any penalties. Instead of letting your money sit in uncertain investments, you could bet on yourself and your new franchise business. We break it all down for you in our blog: check it out here.
Now we know what you may be thinking. Who would quit their job and buy a business while we're headed for a recession? Well, a lot of people actually. There are two camps when it comes to a recession. Those who are scared and hold on tight to their money, and those who understand it's the perfect time to make money moves. Savvy investors have flooded into franchising because they provide businesses that can both scale quickly and are resistant to a recession. It's all about finding the right brand. Check out our blog, How to Find Recession-Resistant Franchises, and our YouTube video, Quitting Your Job? Replace Your Income FAST With Quick Breakeven Brands, for the full breakdown.
We often ask our Sidekick clients "what's your why?". In other words, why did you decide to invest in a franchise? We hear responses from "I wanted to control my own destiny" and "I wanted more time to spend with my family" to simply "I wanted more financial freedom". No matter your why, it's clear people are tired of working for someone else's dream. They want to own their own business and live life on their own terms.
Want to take the first step toward that freedom? Schedule your free 10-minute call with Sidekick to explore brand options and find your franchise fit.