Finance & Economics

Top 7 franchise businesses to bring your attention to in 2020

Find the best franchise to buy in 2020

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Top 7 franchise businesses to bring your attention to in 2020. Source: shutterstock.com

A franchise is a good alternative to starting a brand new business. It’s less risky since you offer products and services people already love. You acquire not only the existing brand name but also unique proprietary knowledge, smoothly running complex processes, and recognized trademarks. Therefore, franchising is not losing its popularity even among the COVID-19 uncertainty. In fact, many struggling entrepreneurs would prefer such a business model now exactly for its stability.

In March 2020, Franchise Insights conducted a survey regarding buyers’ sentiments. It appeared that the pandemic crisis has had little effect on their intentions to start franchise businesses. Only 19.2% of the respondents considered putting their business startup searches on hold. Moreover, 27.9% of prospective buyers replied that current economic change “boosts my interest in controlling my own destiny through business ownership.”

Historically, when unemployment begins to grow, many franchisors see increased interest in their franchise opportunity." When people "no longer have confidence in their current employment situation, many may want the security of being their own bosses
Keith Gerson, president of franchise operations in FranConnect

Truly, according to the FranConnect special report, the prevalent majority of franchisors in business services, as well as commercial and residential services have survived and continued their active sales efforts. About two-thirds of all respondents put franchises on sale amidst the global turmoil.

A month later after the original poll, over 70% of franchise executives pursued their sales objectives and over half of the respondents were either moderately or highly optimistic about achieving their original franchise sales plan.

Without a doubt, franchising plays a major role in our economy and we forecast that most franchise businesses will sustain robust growth in 2020
Darrell Johnson, CEO of FRANdata 

Although the coronavirus-related recession may have changed his rosy prospects somehow, the essential idea remains – franchising is here to stay. And here are with the top 7 franchise businesses to bring your attention to in 2020.

Best franchise to buy in 2020: top 7

  1. McDonald’s
  2. Ace Hardware
  3. Stratus Building Solutions
  4. Budget Blinds
  5. Once Upon A Child
  6. ActionCOACH
  7. Signarama

McDonald’s

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Consider McDonald’s franchise. Source: pexels.com

The company doesn’t need any introduction. The business may have seen its profits down amid the lockdown, but most of the brand’s restaurants kept working with the help of the drive-through ordering system. Moreover, now McDonald’s is testing new experimental social-distancing designs in the Netherlands. In the US, a representative told Business Insider that the chain is working “thoughtfully and judiciously to make changes to our operations in collaboration with our franchisees.

This franchisor offers four types of franchises:

  1. Traditional Restaurant located in freestanding buildings, storefronts and food courts with a full-menu offer.
  2. Satellite Locations operating in a retail store, strip center, airport, universities, hospitals, and other locations, serving a scaled-down menu and non-McDonald’s trademarked products.
  3. STO and STR Locations situated in fuel stations/convenience stores and operating a full-menu McDonald’s restaurant within the shared space.
  4. BFL Franchises: ‘Business Facilities Lease’.

Ace Hardware

Today the world’s largest hardware retailers cooperative includes thousands of stores in more than 66+ countries and in all 50 US states, each offering a variety of home improvement merchandise, including Ace’s own exclusive line of products. This is one of the most recognizable and trusted businesses in the industry distinguished by exceptional customer service. Moreover, hardware and home improvement retailers around the world are seeing sales surge despite operating in the middle of a pandemic. They have been deemed essential businesses and have been allowed to remain open even during the lockdown in most countries.

Our heads are still spinning. We finished April up 52% and so far after three days May has been up over 200% and two of the three days have been the largest since the store opened. All while maintaining social distancing, the onslaught of curbside pickups, along with reduced hours and reduced staff
Jason Haley of Ace Hardware of Clarkston in Clarkston, Mich.

Stratus Building Solutions

This is a good variant for those seeking a business opportunity with low initial investments. Franchising for 14 years now, the company has unit franchises and regional master offices nationwide. Stratus franchisees provide “Stratus Green Clean” services, updated in times of enhanced cleaning requirements. The employees must use proprietary chemicals and equipment to make office buildings, shopping centers, restaurants, retail outlets, dealerships, medical institutions and religious centers shine bright with cleanliness.

Since the beginning of the outbreak, Stratus Building Solutions franchisees have been offering detailed deep cleaning, sanitation, and disinfection services across North America to help combat the spread of COVID-19. The package includes high-touch point area focus, color-coded microfibres to reduce cross-contamination, electric and electrostatic chemical dispersal systems, and more. Their clients can display the brand “Routinely Disinfected” distinction at the entryway of bricks-and-mortar facilities. This way, visitors are sure that health safety measures here are properly applied.

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Top 7 franchise businesses. Source: shutterstock.com

Budget Blinds

Budget Blinds is a custom window-covering franchise business that offers convenient shop-at-home service for window coverings and home décor accessories. The company also offers customers free in-home consultations, virtual consultations, window measurements, and installation. The company is providing additional incentives for new franchisees during this difficult time by delaying fees and negotiating better pricing with product manufacturers and vendors.

Currently, Budget Blinds has officially reopened for business to offer homeowners throughout North America its redefined business model. For instance, locally-owned Budget Blinds franchises have added a best-in-class, web-based consultative service for homeowners wanting to complete the window covering the design process 100% online.

What I’m proudest about from a customer service standpoint is being able to take the popular Budget Blinds in-home consultation and convert it into a 100% virtual process without sacrificing our reputation for personalized service and results
Doug Phillips, Budget Blinds president

Once Upon A Child

Once Upon A Child specializes in selling new and used children’s clothes, toys, furniture and equipment. First franchises were offered in 1992, eight years after the business started operations. In 2019, about 500 franchise locations were registered in the US and Canada. The franchisor conducts its two-part compulsory training program at Winmark’s training center in Minneapolis. It covers management and operation of a franchised retail business, real estate matters, business plan development, sales, customer service, marketing, advertising, computer operation and store inventory, staff and financial management, and other essential topics.

Franchisees will receive an “Exclusive Territory” surrounding the location of the store when granted a Once Upon A Child franchise. A computer-modeled mapping which factors in population density and average household income and consumer traffic patterns will determine the boundaries of the Exclusive Territory, where another franchised or company-owned Once Upon A Child store cannot be established.

Although some stores under the Once Upon A Child franchise were temporarily closed and later had their opening hours reduced, the business managed to adapt to COVID-19 realities. It came up with the “Spring Essential Box” offer just in time when many parents were losing their jobs and their young ones continued to outgrow their clothes, without any open stores nearby. Basic Box may have included a curated set of 10 mix and match tanks, tees and bottoms for $25 while those who ordered the Spring Surprise Box got 15-20 mix and match tanks, tees, bottoms, and a swimsuit (while supplies last) in great condition for $50.

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First Once Upon A Child franchises were offered in 1992. Source: shutterstock.com

ActionCOACH

ActionCOACH business coaches work with more than 15,000 businesses weekly and are changing the lives of business owners, helping with their sales, marketing, management, team building and goal setting. The team has more than 1,000 coaches in more than 70 countries worldwide. This business offers flexible hours, flexible working spaces and professional freedom.

Currently, ActionCoach franchisees offer support in re-energizing, re-training and preparing teams to face the new standards of customer service and COVID-19 realities. Namely, they provide professional guidance and assistance in creating a 90-day Crisis Management Plan to help businesses survive and thrive during this global crisis.

Signarama

This remarkable franchise print shop sells banners, trade show props, storefront signs, digital displays, vehicle graphics, color wrap film, branding and messaging solutions, and more, using cutting-edge technology like digital printing and digital dynamic signage. Its 24/7 Online Stores facilitate flexible retail access which is critical today. In times of pandemic, Signarama is bolstering their product offerings to include COVID-19 specific safety signage solutions, counter graphics, posters, social distancing stickers and floor graphics. Additionally, we have added a Personal Protection Equipment offering which includes face shields, Perspex dividers and “sneeze and cough guards”.

Franchisees participate in a comprehensive 5-week training program. Moreover, experienced staff help newbies with financing options, site selection, lease negotiation, renovations, installation of fixtures, furniture and equipment. They also set up your computers and give the software systems you need to run your business smoothly and effectively.

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