More Americans Are Quitting Their Jobs. That Could Be Big News For Franchising.

More Americans are quitting their jobs than at any other time in the last two decades, and the franchise industry has a rare opportunity to turn those ex-corporate employees into a thriving pipeline of franchisee candidates.

On Sunday, the Wall Street Journal broke down a recent Labor Department report showing that 2.7% of U.S. workers were leaving their jobs in April, more than a full percentage point up from a year earlier and the highest rate the country has seen “since at least 2000,” the article says. 

1851 has written before about how depressed economies tend to spur a boom in franchising as layoffs create a larger pool of talented and, in many cases, well-capitalized franchisee candidates looking to take their careers into their own hands. But the current high rate of employee resignations shows how even positive economic trends can be good news for the franchise industry. 

From WSJ:

The shift by workers into new jobs and careers is prompting employers to raise wages and offer promotions to keep hold of talent. The appetite for change by employees indicates many professionals are feeling confident about jumping ship for better prospects, despite elevated unemployment rates.

 

While a high quit rate stings employers with greater turnover costs, and in some cases, business disruptions, labor economists said churn typically signals a healthy labor market as people gravitate to jobs more suited to their skills, interests and personal lives.

Economists have offered a number of reasons why the U.S. may be experiencing a spike in employee resignations, two of the most common being a post-pandemic reevaluation of career paths and a widespread disinterest in returning to brick-and-mortar office spaces after a year of remote work. 

In both cases, franchising offers a potentially lucrative solution, allowing first-time entrepreneurs to open their own business in a wide range of segments, many of which advertise flexible hours, hands-off operations and mobile or remote work opportunities. 

See 1851’s favorite remote and mobile franchise opportunities for 2021.

To take advantage of the large new pool of potential franchisee candidates, franchisors need to perfect their brand story and tell it often. How does the brand offer a better lifestyle for owners? How will it make them richer? How does the brand’s corporate team support its franchisees? Franchisors will need to answer these questions before candidates even ask.