Preference for Franchise Ownering Growing
March. 31, 2021 – In a recent survey of aspiring business owners, almost two thirds indicated their interest to “buy a franchise” over the other paths to business ownership. Less than one third (32%) indicated an interest in buying an existing business.
While reasons for the preferences were not solicited, the benefits of a network of successful franchise owners and recognized brands are well-documented, with more than 773,000 franchise units in the US. Startups of entirely new businesses are more likely to fail, and purchases of existing businesses can require much more capital up front with many of the same risks and no network of training and support often available to franchisees.
Looking at this data over time, one can see the preference for franchise ownership over the alternatives increasing in the last several months, to levels not seen in at least the last thirteen months. One can speculate that the uncertainty brought about by the pandemic, while spurring entrepreneurs to consider business ownership, also pushed those inclined to look at the relatively lower-risk purchase of a franchise.
This survey of future business owners was conducted February 25-28, 2021 for the most recent Small Business Startup Sentiment Index™.