Auto Franchise Demand is On the Rise
Several industries have seen an increase in demand and growth during the COVID-19 pandemic and the economic rebound we’re seeing as we still grapple with containing the spread. Some of these are obvious — home shopping services like Amazon, grocery stores, at-home work solution providers dealing in office supplies and electronics, and so on.
Anecdotally, we probably are thinking mostly corporate-owned companies that have the capital to expand and are equipping for an eventual “return to normal” or pivoting to the “new normal.” Regardless of how you define the present and the future, you’d be surprised at some of the growth indicators in the franchise world right now.
Recently, FranchiseVentures published data through Franchise Insights showing an astonishing increase in inquiries and interest for several franchise industries. It shows both reaction to the impact of COVID-19, with a growth in health care franchising inquiries, but also a pivot toward moving forward. Restaurants, one of the hardest hit industries this year, still excel in the franchising world. Wow, people are considering opening a restaurant right now?! Yes, they are, and believe it or not, people are committed to buying a car right now too!
The demand for automobiles hasn’t really gone away during the pandemic and, in some ways, actually is more critical than ever before. It’s hard to feel socially distanced when using public transportation right now. In addition to concerns about safety, there are workers in every industry who still need to get to their place of business. Remember the workers at grocery stores or Amazon, who helped keep us home when it was needed? What about health care workers?
Likewise, the demand for an automobile franchise opportunity really hasn’t waned, and in fact, is growing, according to FranchiseVentures. I’ve had many introductory and continuing conversations with investors who are looking hard at “Buy Here, Pay Here” opportunities. They, like investors in other franchising opportunities, see the need in the marketplace going forward.
Automotive franchises are interested in growing in several markets, and, in many situations, can have a rapid “signature-to-open” timeline. The need for reliable transportation via an automobile, is likely to never go away.
In addition, many Americans struggled during the economic fallout from the pandemic and are looking to rebuild their financial status with new jobs and re-establishing their credit if it took a hit. This is an opportunity to help those who may be met with denials through traditional financing.