Thousands of people make the decision to buy a franchise every year. And they do it for a variety of reasons.
That said, I’ve talked with thousands of prospective franchise business owners over the years.
All of them…all of these courageous people I’ve met and/or worked with 1-on-1, have their reasons to buy a franchise.
In this post, I’m going to tell you what they are.
Why Might Someone Want To Buy A Franchise? Here Are The Reasons
1. To escape from a screwed-up boss.
Sometimes, no matter how hard you try to be a model employee, some bosses just can’t be pleased.
Now, I know you may find this hard to believe, but bosses are human, too.
In fact, they bring with them all the weird stuff they’ve had to deal with in their lives, whether it was a messed-up childhood, some ex-boyfriend or girlfriend stalking incidents, late-teen glue sniffing, or post-adolescent thumb sucking.
Given that, not every boss out there has been through therapy, or has a desire to learn about the benefits of 1-on-1 counseling. But, it is not your problem…even though it feels like it is.
But if you do have a difficult boss, and you want out, owning a franchise is one way to escape the madness.
2. The desire to build equity.
Working for someone else can give you a feeling of security.
First off, you have a steady paycheck.
Secondly, you usually get health benefits, and sometimes even enjoy being part of a retirement plan.
Lastly, you have a fairly predictable lifestyle; the same basic working hours and days off.
In my view, those are good reasons to work for someone else.
That is until you are downsized, outsized, rightsized, left-sized, replaced, or just plain fired.
Nevertheless, working for someone else has probably enabled you to keep up with your expenses, maybe save a little extra for a rainy day, and contribute some money towards your retirement.
And if you’re lucky, working for someone else has enabled you to amass some wealth. If that’s the case, fantastic! But I suspect it’s not, which may be the reason you’re “looking at other options.” Like becoming a franchise business owner.
Recommended reading: How Franchise Businesses Work
A Thought-Provoking Question For Employees Who Have Lost Their Job
If you’ve been employed at the same company for 10+ years, was downsized/fired etc., what do you have to show for all of your hard work?
Here…let me help you with some answers:
Maybe you have a severance package.
You may even get to keep your health benefits for a short time, or better yet, you get to experience the pleasure of paying COBRA insurance premiums until you land your next job or your checking account runs dry. Whatever comes first. I bet you won’t be sending your boss a thank you letter for that.
All kidding aside (mostly), there’s something most people forget about when they’re employees. It’s this; in almost every case, employees don’t have an opportunity to build equity. That’s because equity is almost always reserved for the owner. And when the owner sells, the owner keeps the money!
Think about it.
If you actually did have equity in your last job, you’d be able to sell it for a profit. As in “sell” your job for a profit. Do you know anyone who’s been able to do that?
Note: I don’t remember my dad being able to “sell” his jobs after he was downsized (like 5 times).
But you will have an opportunity to earn equity if you invest in a business of your own, grow it, and sell it for a profit.
3. A desire for more freedom and control.
Let’s say you’re employed, and your very talented 15 year-old daughter has a championship basketball game a week from today. The thing is, your job requires you to travel 2 out of 4 weeks every single month.
Up until now, you’ve been pretty okay with that, as you’ve been making good money, and at least you’re not always out of town.
On a positive note, next week is you’re in-town week, so you’ll get to see her play.
But business has been getting a lot tougher lately. There’s more and more competition, your sales numbers have been below par, and you have a new boss who you haven’t quite figured out yet. Then there’s that really tough Dallas client. This is a guy who expects you to be a phone call away at all times. Speaking of which, you were able to help him navigate through some technical issues his company was having last month, and all is going well.
The week of the big game starts off well, and you can’t wait to see your daughter in action, Thursday night. On Tuesday, that client from Denver calls, and is having a brand new set of technical issues. Big ones. Ones that affect his operations center. In any event, you try to get them resolved via phone, and even have your IT Dept. step in.
By Wednesday, their problems deepen, and you have no choice but to fly to Dallas to help your client through this mess. You inform your daughter that there’s a big headache at work, and you have to fly to Texas to resolve it. She tearfully walks away, and you, almost on the verge of tears yourself, throw your hands into the air, experiencing a combination of sadness, anger, and disbelief.
Even though things like this have happended before, for some reason, this one really stings. You are so sick of not being in control of your schedule. You’re working harder than ever, you have a new boss that doesn’t seem to appreciate your talent, and you’re stuck with a company that’s starting to lose market share. Most importantly though, you have a kid who is really hurting, because her Dad can’t be there to watch her play in her most important game ever. Maybe it’s time for a change.
4. To create a legacy.
Some franchise concepts can prove to be an ideal family business. Wouldn’t it be wonderful if you could guarantee your children a job when they graduate high school or college? It could save them some headaches.
When you think about it, the traditional Monday through Friday, 9-5 job model has been changing for years now. Employer loyalty is almost nonexistent, nowadays. 20-30 year jobs are pretty much history. And according to Steven Little, kids who will be graduating college in the next decade will have 7 different careers. That is 7 different careers, not 7 different jobs. Do you want your kids experiencing that kind of uncertainty?
The good news is that if you invest in a business of your own, and it’s a business that your family can get involved in, you may be able to secure their future, along with your own. Wouldn’t that be nice?
In the final analysis, even if your kids decide they don’t want to be part of the business, it’s okay. At least you gave them a choice.
5. Community involvement.
At first glance, you may be thinking that getting involved in the community isn’t on your top lists of reasons to buy a franchise. Fine.
But there are certain types of people who want to get into a business so that they can get involved in all things local. In fact, I’ve worked with several folks who have insisted on buying a franchise that gets them involved in their communities in a big way. If that’s something that interests you, there are several franchise opportunities that offer concepts that rely heavily on community-based marketing activities and involvement.
Tip: even if community involvement isn’t high on your list, you will be involved in your community. That’s because you’ll be a local small business owner.
And I have a feeling you’ll like it.
Business Tip: You Need To Get Business Owners Policy Insurance