Is it a good idea to buy a franchise in the middle of the pandemic?
Posted on 28/07/2020
The coronavirus has brought with it a series of significant consequences, which for Colombia have been economic, health and social. An example of this is the rising unemployment in the country.
With a 'braking' economy and quarantines for the Colombian population, it could be said that it is not time to invest in a brand or franchise.
But "I consider it a good time, because franchisors can grant better conditions to encourage the growth of their businesses; also because with an adequate strategy for the current moment, significant returns can be generated ”, affirms Rafael Minauro, associate director of the University Canada West.
In addition, the expert from said university considers that if successful in this difficult situation, this will allow the investor and the company to establish important bases for a return to 'normality'.
Together, governments may find an alternate "lifeguard" in franchises to keep jobs.
According to Ramón Wilches, a partner at Sinergik Consultores, “when you have a franchise, it becomes a new company that is generating employment. In fact, a franchise creates three to 10 direct jobs and as many indirect ones. ”
What types of franchises are and will continue to boom in the coming months?
The market varies, needs change and the situation can improve. However, the companies that managed to adapt to the pandemic and were able to continue with their activities will be those who will also have opportunity and growth in the future.
Minauro argues that "from the traditional food, health, personal care, cleaning and laundry franchises to the education sector, they will continue to grow and generate opportunities at all levels of training."
Along the same lines, other sectors such as "beauty, delivery products or domiciles and service companies are going to be important centers that will be reactivated", warns Wilches.
The expert from Sinergik Consultores told Tratocontrato that franchises or companies that have to do with technology and training will also have significant growth.
Why are franchises an interesting alternative in times of pandemic?
“The merchants who went bankrupt or had difficulties during the emergency, can find in the franchise a salvation for the reactivation; there are many people who were left without work, who have their savings and who want to undertake a project, where the franchise is the best option, ”because according to Wilches, it is not started from scratch.
What difficulties might you encounter if you invest in a franchise?
“Access to financing is probably very restricted and will have to rely more on own investment. Access to outsourced services is also likely to be less stable, "concludes Minauro.
Here you will find the best expert advisers in buying and selling franchises. They will support you in the correct structuring of the franchise agreement and any other questions on the subject.
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