Buying a franchise is a smart choice for many reasons: you gain more independence and flexibility, more control over your professional and financial future, and the opportunity to leave a meaningful legacy for your family. But there are certain times in life when buying a franchise can be especially smart.
Career Transition
Some career transitions are voluntary. You might be ready to reach for a promotion, explore a new line of work, or leave a company where you’ve topped out or the culture no longer suits you. And some transitions, of course, are not by choice. Despite excellent performance and loyalty to an employer, you might lose your job because of reorganization, downsizing, or ageism.
If you find yourself in one of these situations, franchising is an ideal way both to take the next step and to take control of your career. Because there are so many types of franchises–fast food, fitness, pet care, and salons, just to name a few–the odds are good that there’s one to fit your interests, abilities, and career goals. And because franchising means owning your own business, you’ll call the shots on how your career develops. Want to work full-time on your own for a while, then have a traditional retirement? You can do that. Want to start as a sole proprietor, then hire employees and add units as your business grows? You can do that. Want to manage full-time at first, then transition gradually to an active-investment model? You can do that, too.
Retirement
Conventional wisdom says that, when you retire, you’re done with work. But that kind of arrangement doesn’t suit everyone. Some people find the lack of structure and reduced mental stimulation of retirement boring and unfulfilling. In fact, studies show that men who retire early are more likely to die early, due to a decrease in physical activity and human interaction. Afraid that could be you? Then franchising may be your ideal retirement strategy.
Because of the flexibility of franchising, you can adapt your business to fit the kind of retirement you want, not the kind everyone says you’re supposed to have. If you like the structure of a day job and want to continue working part- or even full-time, you can be an owner-operator franchisee. If you love leadership and managing a team, multi-unit or executive-model franchising may be your best fit. Or if you want a mostly traditional retirement, with the occasional mental stimulation of working through a balance sheet or developing an annual strategy, look into semi-absentee ownership.
Relocation
Whether you’re relocating of your own accord or because of an external requirement like a spouse’s job change, franchising can be a good way to create your own employment in a new city. With traditional self-employment, you’re completely on your own to build a business from nothing. Franchising, however, comes with brand recognition, corporate support, and a proven business system that can help you establish a sustainable customer base more quickly. That’s an ideal arrangement if you’re in a city where you don’t have a network or aren’t as familiar with the business landscape.
Most franchises will be more successful if you stay in one place for at least a few years, but don’t discount franchising if you have to relocate regularly. Just look for options that are home-based or have a faster ramp-up time. If you choose a nationwide franchise, you can continue to operate your business–or even open new units–as you move. This will be easier to accomplish if you stay within a region, since you will need to have resources to travel between units for management visits.
Inheritance/Windfall
If you recently received an inheritance or other windfall, such as from the sale of a property, consider using it to purchase a franchise. This can be an effective strategy for multiple situations. If you were counting on that money to fund your retirement but are still some years away from needing it, you may have sufficient lead time to build up a franchise business that will provide a retirement income. Ditto if your children are still young, but you had planned to use the money to pay for college. You may be able to purchase a franchise, build it over time, then sell it for a profit to pay for college and have money left over.
Alternatively, are you in a position where your current resources already cover your major financial needs? Then franchise ownership can be a way to add to the legacy you leave your family. Particularly if you have a child who shows an aptitude for business, this may be an opportunity to leave him or her something more meaningful than cash: the experience and independence of business ownership, plus the opportunity to build wealth for his or her family.
These are just a few of the life changes that can make franchise ownership a smart choice. If you’re going through a big change, keep an open mind. The independence, flexibility, and opportunity of franchising may be just what you and your family need for the next phase. And if you want to talk through the options with someone who’s been there, book a call with me–just 15 minutes is all it takes!
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