Franchising Industry Forecast to Bounce Back in 2021

March 18, 2021

After weathering a year filled with business closures and unique challenges, the outlook for franchising in 2021 is bright, particularly for franchises in the residential and services sector, like Creative Colors International Inc.

Bolstered by the rollout of vaccines and government aid programs, the franchising industry is expected to return to pre-pandemic levels by the end of 2021, according to a report by the International Franchise Association, the leading advocate for the franchise community. In its annual economic outlook by FRANdata, IFA forecasted the franchise industry will erase losses from last year and is slated to add 26,000 locations. IFA predicts the gross domestic product of the industry will increase 7 percent to $477 billion, and franchise business output will rise 16.4 percent, to $780 billion. Once consumer spending recovers, IFA forecasts that pent-up demand and record personal savings will propel rapid growth for franchisees.

Creative Colors International Inc., the nation’s leading on-site repair and restoration franchise, offers entrepreneurs a pandemic-resistant and recession-proof franchise option. In 2020, teleworking and school closures prompted Americans to focus on home-improvement projects, which fueled a growth in the residential and services sector and helped offset declines in other areas of the franchise industry.

CCI’s restoration services help customers salvage damaged items to save money and prevent having to pay for costly replacements. CCI’s certified technicians can revitalize the interior of automobiles, boats, planes, or recreational vehicles by restoring and enhancing their natural beauty and strength. They can eliminate scuffs, scratches, gouges, scrapes, rips, tears, and color fading, which occur over time due to normal wear and tear.

“2020 was a difficult year for the franchise community. Many businesses received assistance from the CARES Act to keep employees on the books while following government shutdown orders,” said Creative Colors President Mark J. Bollman. “The franchise community is resilient, and CCI was able to finish 2020 strong and is excited to ramp up growth this year.”

In 2020, the hardest-hit franchisees were in lodging, full-service restaurants, and personal services. Despite the downturn, franchise businesses still contributed $670 billion of economic output into the United States economy in 2020, the IFA reported.

Franchisees conquered the challenging year by pivoting their business models to offer virtual services, curbside pickup and delivery, and many launched new products to generate sales.

CCI led the charge by adding a new Sanitizer & Disinfectant to its lineup last year. The new product helps keep employees and customers safe and provides franchisees with a new tool in their arsenal to bolster sales.

As more Americans recognize the benefits of teleworking, many people are getting the courage to cut corporate ties and go out on their own. CCI franchisees are in business for themselves, but they are not by themselves. The Mokena, Illinois-based corporate office provides ample training and support to ensure your mobile business runs smoothly. CCI offers a home-based business model with a flexible schedule and lucrative earnings. CCI garnered a spot on Franchise Business Review’s list of the Top 200 Franchisees of 2021. The company scored high marks for having an excellent relationship with the franchisees in its system.

The nation’s recovery depends on government action to infuse the economy and provide financial assistance to small business owners. The new administration in Washington, D.C. is supporting a $1.9 trillion relief package. The plan provides funds for vaccine rollout, stimulus checks, small business support, and more. The administration’s push to reopen schools will enable parents to return to the workforce and provide a welcome boost to the franchising industry.

To learn more about CCI, visit our website: www.creativecolorsintl.com/franchise-opportunities/.