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Why Now is a Good Time for Opening a Franchise Business- The UPS Store

Why Now is a Good Time for Opening a Franchise Business- The UPS Store

Learn why now is a good time for opening a franchise business.

Starting your own business is challenging and can be a little scary regardless of the economic climate, but especially during a global pandemic. No matter what industry you choose, there will always be a certain amount of risk involved. There is no guarantee of success in any new business venture. According to the U.S. Bureau of Labor Statistics, approximately 20 percent of new businesses fail within the first two years. However, opening a franchise can help mitigate that risk and lead to a greater chance for survival, even in times like these. In fact, data collected for shows a surge in aspiring owners anticipating starting a business in the next few months. Here’s a look at a few of the factors that helped franchise businesses survive the pandemic thus far and what makes now a great time to join a franchise network.

Franchise Network Resiliency

According to a study conducted by economists at the University of Illinois, Harvard Business School, Harvard University and the University of Chicago, more than 100,000 small businesses have succumbed to the coronavirus pandemic and permanently closed their doors since March. Although franchise businesses were not immune to the hardship, they did tend to fare better than independently owned small businesses. Why? There are several attributes inherent in the franchise model that help provide protection.

First, the foundational strength of franchise systems allows them to adapt more quickly and continue to grow. Unlike an independent small business, franchise owners have the bandwidth of an established brand to develop ideas for pivoting the business to sustain relevance. The brand recognition that comes from belonging to a franchise network can also provide an extra layer of protection. Consumers tend to trust and feel more confident in businesses that are part of a larger network in terms of safety protocols, quality control standards and staff training procedures.

The franchise business model also provides an edge with financial relief. While franchisees are required to pay royalties and other ongoing fees in order to operate under the brand’s name, a franchisor may suspend, reduce or forgive these fees. This can have a significant impact on the financial health of the business. In addition to this flexibility, franchisors can also help ease financial stress by leveraging their supplier relationships and buying power. They may be able to negotiate with vendors to temporarily lower costs for their franchisees, an advantage most independent businesses lack.

Why Now is a Good Time to Consider Opening a Franchise Business

There’s no doubt that franchise networks provide a certain degree of certainty and stability, which is even more attractive in challenging times like these. Access to capital, job security, reduced competition and availability of prime real estate are four big advantages of starting a business now.

Access to Capital

Perhaps you have accumulated substantial savings in the form of home equity, a retirement account, personal savings or other financial resources. Or maybe you were recently let go but were fortunate enough to receive a sizeable severance package. Even if you don’t already have money available, there are multiple ways to secure funding.

Startup capital is readily accessible at historically low interest rates. The coming months will likely provide even greater access to lending for aspiring entrepreneurs thanks to government programs and new incentives from the Small Business Administration to encourage small business growth. Some franchisors are also offering temporary incentives like discounted fees and greater flexibility regarding opening dates to make opening a franchise business even more affordable.

Job Security

Owning your own business is the ultimate way to create real job security. Being your own boss puts you in control of your own destiny. However, one of the biggest challenges of business ownership is finding good employees. But with so many displaced workers right now the labor pool is flooded, making it easier to find reliable employees to help get your business off the ground.

Reduced Competition

While it’s unfortunate that the pandemic forced many out of business, that means less competition. Fewer options for consumers seeking the products or services you provide can help bolster your sales. It can also result in less price competition and lower advertising costs.

Availability of Prime Real Estate

Finding a great location is critical for the success of a brick and mortar business. The real estate once occupied by now-shuttered businesses is becoming available giving new franchise owners a much better chance of securing a prime location, and at a reasonable rate. Property owners will likely be more willing to negotiate and offer favorable deals to secure new tenants.

The Bottom Line

Business ownership isn’t for everyone and starting a business certainly isn’t a decision you should make overnight. It requires a lot of homework and due diligence. There are many good opportunities available for opening a franchise, even if you have a limited budget. Despite the current state of the economy, now is a great time to join a franchise network. It may end up being the best decision you’ve ever made.

2023 Entrepreneur's Franchise 500 Top Rated for Veterans badge

We Proudly Support Our Veterans

Participating partners with the VetFran program, The UPS Store offers qualifying veterans $15,000 off their franchise fee to start their new business. To learn more, contact The UPS Store Franchise Development Team.

Entrepreneur's Franchise 500 Ranked #4 in 2023 badge

Ranked for over 30 Consecutive Years

The UPS Store has been ranked #1 in the postal and business services category for over 30 years and remains in the top 5 overall for the seventh consecutive year according to the Franchise 500 list.

Kristin Howard

Franchisee, Michigan

The reason my husband and I decided to go into franchising and specifically with The UPS Store, is the different opportunities we're given with the business. The UPS Store has name recognition as well as opportunities to expand.

Debbie Adams

Franchisee, Kentucky

What I enjoy most about being a The UPS Store owner is working with my customers. We are the solution specialists for our customers.

Jim George

Franchisee, Illinios

My favorite part about The UPS Store network is the camaraderie with other franchisees. Everybody loves to help everybody else. You’re really part of a family.

Greg Murray

Franchisee, Florida

The interesting thing about The UPS Store is that when a customer walks through the door there's an extremely high probability that they're coming there to do something that is important to them. So at the end of the day, what we do for customers is very important and they are trusting that we are going to do it well.

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Mariana Huberman

Franchisee, Washington, D.C.

One of the things that I love about The UPS Store franchise system is that you're not ever in this by yourself. The franchisees of The UPS Store network are great.

Heidi Morris

Franchisee, Colorado

The thing I enjoy most about being a The UPS Store franchisee is I get to get up, go to work and know that I'm helping other business owners succeed in what they're doing.

Bob Brown

Franchisee, Tennessee

Owning a The UPS Store franchise has changed my life because it's finally given me the opportunity to engage my customers and my staff and be able to take real pride in what I do. As a franchisee, we get faced with solving peoples' problems every day and we do everything we possibly can to try to help.

Marie Jensen

Franchisee, Oregon

My favorite thing about The UPS Store is the variety. I love the variety of customers, I love the variety of services; getting to know the customers, meeting their needs, finding out how we can help them accomplish what they need to accomplish and seeing how happy they are. That makes me ecstatic.

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Tad Mollnhauer

Franchisee, Florida

With the products and services that The UPS Store provides we can make a difference in people's lives and that is the best reason for being a The UPS Store owner.

Joy Batchelor

Franchisee, Idaho

What makes being a The UPS Store franchisee worthwhile at the end of the day is the customers. The customers treat us like we're family.

Paul Erchinger

Franchisee, Texas

One nice benefit of owning a The UPS Store franchise for me has been that it gives me the opportunity to be more involved in the community. As I make relationships with others it seems like no matter what the environment is, in one way or another business comes out of that and that's not my objective—it's been a secondary benefit to being involved in the community.

Chris Reminder

Franchisee, Ohio

There are several things that I really enjoy about being a The UPS Store franchisee. First and foremost it allows me to get to know the people in the local community and that is a lot of fun. We get to see people on a regular basis. We get to know their life stories. That's a lot of fun.

Bruce Jones

Franchisee, Kentucky

Since we have joined The UPS Store, our life has changed by just having more time to spend together as a family. We've been very fortunate with the stores that we have and we have a great staff that looks out for our best interest and we look out for theirs.

Lonnie Williams

Franchisee, Oklahoma

What makes The UPS Store so successful is it gives each individual an opportunity to grow with the network and just meet the challenges that are brought to them on a daily basis. Every day gives us a new opportunity to help another person, to help another small business, to answer a question and to solve a problem.

Jeff Graham

Franchisee, Alabama

I love my customers. I love my employees. I love every person, every face that comes into my store. I enjoy every day going into work and I can't see doing anything else for the rest of my life.

Stacie Stigar

Franchisee, Alaska

I think that this franchise is so successful because of all of the resources that are available to us as center owners—we have marketing materials, we have so many different opportunities for help from the home office, and it just really makes for a great franchise.

Don Pollard

Franchisee, New Jersey

I think the thing that makes this franchise successful is a number of things. First of all we have an outstanding system, we have a great product, a great brand, and we're able to attract dynamic people to run these centers and run the business. So I think when you put all that together it really provides for a winning combination.

Mary Ellen Nichols

Franchisee, Tennessee

The thing I love about the franchise is that you have the UPS name backing you but yet you also have the autonomy to make your own decisions to promote.

Laura Griffin

Franchisee, Florida

In the eight short months I've owned my The UPS Store it has really changed my life. I've gone from being an employee of someone else to being an employer of my associates. It's a big responsibility but it's exciting every day.

Sandy Scandrett

Franchisee, Wisconsin

Being a The UPS Store franchisee has improved every aspect of my life. It's very rewarding financially, professionally, and emotionally. I have a large number of regular customers who are really, really appreciative of everything we do.

Kristie Robison

Franchisee, Alabama

I would say owning a The UPS Store location has changed my life to where I have more time and flexibility. In owning your own business you get your store up and running and you get employees that you can trust that are going to help keep your store running. This allows me to attend my two boys' ball games and also travel and do things with them so it has really changed my life for the better.