{"id":16652,"date":"2022-11-07T11:26:05","date_gmt":"2022-11-07T11:26:05","guid":{"rendered":"https:\/\/www.franchiselocal.co.uk\/news\/?p=16652"},"modified":"2022-11-07T11:26:05","modified_gmt":"2022-11-07T11:26:05","slug":"how-to-buy-a-franchise-in-a-recession","status":"publish","type":"post","link":"https:\/\/www.franchiselocal.co.uk\/news\/how-to-buy-a-franchise-in-a-recession\/","title":{"rendered":"How To Buy A Franchise In A Recession"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_88 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #101010;color:#101010\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #101010;color:#101010\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-to-buy-a-franchise-in-a-recession\/#there-is-still-an-opportunity-for-you-in-franchising\" >There Is Still An Opportunity For You In Franchising<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-to-buy-a-franchise-in-a-recession\/#there-are-several-reasons-to-buy-a-franchise-in-a-recession\" >There Are Several Reasons To Buy A Franchise In A Recession<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-to-buy-a-franchise-in-a-recession\/#5-factors-to-consider-a-franchise-right-now\" >5 Factors To Consider A Franchise Right Now<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-to-buy-a-franchise-in-a-recession\/#there-are-risks-to-mitigate\" >There Are Risks To Mitigate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-to-buy-a-franchise-in-a-recession\/#recessions-do-not-last-forever\" >Recessions Do Not Last Forever!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-to-buy-a-franchise-in-a-recession\/#a-poor-outlook-for-some-great-news-for-others\" >A Poor Outlook For Some, Great News For Others!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-to-buy-a-franchise-in-a-recession\/#stay-focused\" >Stay Focused!<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>With the apparent doom and gloom of the economy and the likelihood of a prolonged recession, your appetite for looking into buying a franchise right now might now have stalled. However, now could be one of the best times to do so, and in this article, we discuss how to buy a franchise in a recession.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"there-is-still-an-opportunity-for-you-in-franchising\"><\/span><strong>There Is Still An Opportunity For You In Franchising<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Now let us get one thing straight from the outset, a franchise should not be seen as a straight replacement for employment, but it is fair to say that often individuals investigate franchising, not just in turbulent times, as a way for some level of security.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"there-are-several-reasons-to-buy-a-franchise-in-a-recession\"><\/span><strong>There Are Several Reasons To Buy A Franchise In A Recession<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Look at the <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-history-of-franchising-how-it-all-started-and-where-it-is-today\/\">historical facts<\/a> of franchising first. You can look around on this site to find some information on the history of franchising. The good news about the franchising sector is that it has been around for probably longer than you realise, at least several decades, and within that, some economic resets! And as such, there will be lots of data online to show you any impact of the economy, and this is good news for you!<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5-factors-to-consider-a-franchise-right-now\"><\/span><strong>5 Factors To Consider A Franchise Right Now<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There will be more, of course, but just to highlight a few in this short article:<\/p>\n<p>You typically will not be the first to buy into a proven model; at least one other has done this before you. This will undoubtedly be the <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/what-is-a-franchisor\/\">franchisor<\/a> or early adopter franchisees. Therefore, your chance of success will have considerably increased; you just need to follow the system!<\/p>\n<p>Most Franchisors have a system in place to teach anyone, regardless of background, how to operate their franchise. This is excellent news for you; now, you might be able to look at industries outside your natural skill set, which is ideal if you feel that the market you know about will be hit harder than others in a recession. However, for completeness, you should still have a passion for whatever it is you are looking to do!<\/p>\n<p>Franchisors will be more strategic about the future with any threat of recession or economic downturn presented, so you can follow that system and not have to deal with this element by yourself necessarily. After all, <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-benefits-of-franchising\/\">franchising<\/a> is all about being in business for yourself, <strong><em>but not by yourself.<\/em><\/strong><\/p>\n<p>Before buying any franchise, you can get all the facts and figures before you even part with a single penny! This will vary immensely from starting your own business, which is often done on a whim; no need for this when buying a franchise!<\/p>\n<p>Others have done this before you, and they will be an excellent resource for you. Check out any franchise resales in the franchise brand you are looking into, and talk to them as well as other franchisees. They will be non-competing anyway; nothing stops you from talking to them at the appropriate stage!<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-16653\" title=\"Risks To Mitigate\" src=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/11\/Risks-To-Mitigate-1024x683.jpg\" alt=\"Risks To Mitigate\" width=\"696\" height=\"464\" srcset=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/11\/Risks-To-Mitigate-1024x683.jpg 1024w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/11\/Risks-To-Mitigate-300x200.jpg 300w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/11\/Risks-To-Mitigate-768x512.jpg 768w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/11\/Risks-To-Mitigate-150x100.jpg 150w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/11\/Risks-To-Mitigate-600x400.jpg 600w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/11\/Risks-To-Mitigate-696x464.jpg 696w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/11\/Risks-To-Mitigate-1068x712.jpg 1068w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/11\/Risks-To-Mitigate-630x420.jpg 630w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/11\/Risks-To-Mitigate.jpg 1200w\" sizes=\"auto, (max-width: 696px) 100vw, 696px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"there-are-risks-to-mitigate\"><\/span><strong>There Are Risks To Mitigate<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It is fair to say that your decision to enter franchising needs to be for the long term, not least because you will probably be entering a contract for a prolonged period, so let us look at other elements you should also be considering.<\/p>\n<p><strong>Finance<\/strong> &#8211; is this still readily available? You might find that some financial institutions decide to pull back from the amount of lending they were once offering. There are some great schemes still available, though, regardless of this.<\/p>\n<p><strong>A brand-new Franchisor<\/strong> &#8211; we looked earlier in this report at historical data. One <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/10-advantages-of-franchising-in-2022\/\">advantage<\/a> of buying a new franchise is that you will probably be offered some \u2018early adopter incentives\u2019, which can bring higher rewards, although there is an increased risk.<\/p>\n<p><strong>Buying any franchise can take time<\/strong> &#8211; you should thoroughly research all options before fully committing, so factor in what you do during this time. Should you keep your job and do your research in your downtime? It might be that you have been made redundant, for example, and whilst it might take a few months to commit to a franchise, this will have an impact on your financials.<\/p>\n<p><strong>Working capital<\/strong> &#8211; the funds to buy any franchise is often just the start. Think about the cash requirements of the business moving forwards, and ensure you can sustain this. Getting this point wrong can be highly costly and hamper your business growth.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"recessions-do-not-last-forever\"><\/span><strong>Recessions Do Not Last Forever!<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It is too easy to play into all the doom and gloom. However, it will turn a corner at some point, and if you have come into <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-pros-and-cons-of-franchises\/\">franchising<\/a> for all the right reasons, then factored in the positives and negatives, then also built your own solid business, imagine what great shape you will be in as we come out of any recession.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"a-poor-outlook-for-some-great-news-for-others\"><\/span><strong>A Poor Outlook For Some, Great News For Others!<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Let us look at some scenarios that might be presented in the coming months. This is sad and disappointing for many, but there is an opportunity for you.<\/p>\n<p><strong>Sites and locations<\/strong> &#8211; you might find they become more readily available with landlords willing to accept preferential commercial terms,<\/p>\n<p><strong>Staff<\/strong> &#8211; this has been more of a problem of late. Could more people looking for alternative jobs be the outcome of fixing this? Often it will also drive down salary demands,<\/p>\n<p><strong>Franchisor incentives<\/strong> &#8211; franchisors will want more franchisees, see what they might be willing to offer to help you make your decision now.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"stay-focused\"><\/span><strong>Stay Focused!<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If you are serious about a franchise, you will do your <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-information-centre\/\">research<\/a>. This will often become very apparent to the franchisor with the questions you put to them. Asking, for example, how long they have been operating is not a good question; you\u2019d be expected to know this! That said, if you don\u2019t ever feel that your questions have been answered, the good news for you and franchising is that there are always more options, so power to you!<\/p>\n<p>One more thing to remember, there are no recession-proof franchises, no matter what anyone tells you! However, some franchise businesses are recession resistant and hold up better in a down market.<\/p>\n<p>The franchise community is very friendly, ask anyone for an opinion; I\u2019m sure they will be only too happy to assist!<\/p>\n<p><em>This article was written by Richard Pakey, who is a franchising expert and Regional Director for the award-winning <a href=\"https:\/\/www.limelicensinggroup.co.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\">Lime Licensing Group<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With the apparent doom and gloom of the economy and the likelihood of a prolonged recession, your appetite for looking into buying a franchise right now might now have stalled. However, now could be one of the best times to do so, and in this article, we discuss how to buy a franchise in a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":16654,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[29],"tags":[],"class_list":["post-16652","post","type-post","status-publish","format-standard","has-post-thumbnail","category-tips-advice"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/11\/how-to-buy-a-franchise-in-a-recession.jpg","_links":{"self":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/16652","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/comments?post=16652"}],"version-history":[{"count":0,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/16652\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media\/16654"}],"wp:attachment":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media?parent=16652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/categories?post=16652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/tags?post=16652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}