Part 1 of 2

In today’s challenging economy, many people feel that they have lost a sense of control over their careers. Widespread corporate layoffs and downsizings have made the job market a tenuous environment in which to build a solid future. As a result, a growing percentage of my career consulting clients are turning to entrepreneurship as a viable alternative.

Indeed, one of the best ways to gain more control over your career is by owning your own business. Your options include: (1) becoming a consultant; (2) starting a business “from scratch;” (3) buying a franchise; and (4) buying a non-franchised business.

Of the clients who have elected to pursue the “entrepreneurial option,” most have invested in franchises. Franchising has never been more popular, and the range of opportunities has never been broader. Owning a franchise combines the stability of a proven business model with the independence and income potential of self-employment.

Joining with an “established business system” is generally comfortable and familiar for executives who have spent their careers within corporations. It is important to understand, however, that acquiring a franchise is NOT “just buying a job.” When you purchase a franchise, you OWN the business.

Such notable publications as Business Week and The New York Times have recently published articles stating that franchising may be the BEST option for mature executives who have been displaced, but who are not ready to retire!

In order to make an intelligent determination as to whether franchise ownership would be right for you, it is important to first gain a basic understanding of the industry and the opportunities it affords.

What is Franchising?

According to the International Franchise Association, the leading professional organization in the industry…
Franchising is a method of distributing products or services. At least two levels of people are involved in the franchise system: (1) the franchisor, who lends its trademark or trade name and a business system; and (2) the franchisee, who often pays a royalty and an initial fee for the right to do business under the franchisor’s name and system. Technically, the contract binding the two parties is the “franchise,” but that term is often used to mean the actual business that the franchisee operates.

Franchising is also known as “a continuing relationship in which the franch...