It always helps to have a goal or two in mind when pursuing something big, like becoming the owner of a franchise business – any business. Do you have a specific goal in mind? Do you have your “end game” visualized? Have you thought about some of the possible outcomes? Or, are you thinking about becoming the owner of a franchise business just to escape a lousy career-related situation?
I hope not. That’s because buying a franchise, owning a franchise, is a long-term play. You need to think long-term.
Below are some possible long-term outcomes that can happen as the result of becoming the owner of a franchise business.
Possible Outcomes in Franchise Ownership
1. You Could End Up Building a Lot of Wealth
Most of the wealth in franchising comes by way of multi-unit ownership.
Fact: Multi-unit franchisees control 55% of all franchised units in the U.S.
Multi-unit franchise ownership involves choosing a franchise concept, and a franchisor, that encourages multi-unit ownership.
As a matter of fact some concepts, especially ones in the food sector, require new franchisees to sign multi-unit franchise agreements. These agreements may be for 3, 5, even 10 franchise units. There’s usually a development schedule set up that franchisees must adhere to. For example, franchisees may have to commit to opening one new unit every 18 months.
Multi-unit franchise ownership can be quite a wealth creator. It’s simple math. If you own 10 franchise units each doing $1 million in annual sales, and you’re able to keep even 5% for yourself after royalties and expenses, you’re making $500k a year. That’s a lot of money. There are lots of franchises in the food sector that do quite a bit more than $1 million in annual sales.
Can you imagine owning 10 or 20 Dunkin’ Donuts franchises?
2. You’ll Never Have to Work for Anyone Else Again
Doesn’t that sentence have a nice ring to it?
For some, that outcome would suffice. Especially those who have had to become expert job interviewees because of the number of times they’ve been downsized. If you’re someone who has experienced multiple job losses, you know what I mean.
On the other hand, there are those of us who have had to work for real jerks and keep our jobs. Before I became my own boss, I had several bosses who were verbally abusive and felt that if enough people feared them, maybe their job production would increase to an acceptable level. Well, it never worked for me, and if you had a boss-or bosses like that – I doubt it worked for you either.
If you do decide to become your own boss, know that there’s a certain feeling of power that comes with it. If that power ends up looking good on you, you may never have to work for anyone again. It’s a great outcome.
3. A Sense of Accomplishment
I’ve worked with dozens of people who have told me that their main reason for wanting to buy a franchise was to have a sense of accomplishment.
A lot of the people I work with have been downsized from their mid to high-level corporate jobs and usually more than once. Some of them are so depressed, it’s heartbreaking.
Some of them have worked 14 hour days for months at a time, trying to accomplish the goals their higher-ups set for them, only to have their divisions shut down and their jobs eliminated through absolutely no fault of their own. These goal-oriented people missed out on reaching their goals because their jobs were eliminated. No wonder they’re depressed. They don’t feel they accomplished anything.
Buying a franchise and then actually becoming a successful franchise owner can go a long way in the “feeling a sense of accomplishment” department.
You should try it sometime.
4. Building a Legacy
I’ve talked to dozens of would-be franchise owners who have told me that they didn’t want their children to experience some of the things they’ve had to endure over the years. (Like getting downsized over and over again.)
I’ve had people tell me the only reason they wanted to buy a franchise was to make sure their kids were set. They wanted their kids to have an opportunity to learn the business and eventually take it over if they chose.
That’s pretty powerful stuff. It says a lot about what’s been happening over the years in corporate America.
Today’s corporate employees, the ones that are living in reality, know where they stand. They know that their jobs can be eliminated at any time, and always have an updated resume at the ready. In addition, they’ve cultivated a powerful network of like-minded people on LinkedIn, and know how to use it.
Would you like to help your children avoid the career pain that so many are experiencing these days by buying a franchise that they could get involved in? Would that be a good outcome for you?
5. Retire in Style
Maybe you’d like to walk away from your business; the business you’ve built up for the last 10-15 years. Maybe you’re thinking of building it and cashing out.
A lot of people I talk to start with the end in mind. They plan on selling their franchise after their franchise contract is over.
Selling your franchise isn’t that complicated. Usually, the franchisor gets involved, and may even help you find a buyer. Most franchisors already have people in their sales pipeline looking to buy franchises, and if there are any candidates in your geographical area that are fairly serious, they could be introduced to you.
If there’s no luck on that front, you can hire a business broker. Business brokers list your franchise and present it to people that they’re working with who are looking for existing businesses. They receive a fee, usually a percentage of your selling price, if they sell it for you.
You can find business brokers in your area by going to IBBA.org, the official website of the International Business Brokers Association.
Owning a franchise business is a major commitment. You’ll work really hard. There will be times of stress. There will be bad days and good days. But, they’re your days because it’s your business.
You have a lot more control over your own destiny. And the outcome – who knows? Maybe you can control that, too.
Franchise Photo via Shutterstock