Out of Work? Consider Buying a Franchise

I’m reminded often that just because someone is “out of work” doesn’t mean they’re out of money. If you are unemployed and have savings, a franchise might be your answer. If you think it might, spend an hour online searching for franchise opportunities that you feel you could afford.

Franchises come in all sizes, shapes, and investment price points. A McDonald’s franchise costs thousands and then thousands more to construct a restaurant, hire and train staff, and so on.

Some service-based franchises are available for under $25,000. The benefit to a franchise even at this lower price range is that the work is done. Well, a lot of it is. The franchiser has developed systems, processes, and procedures to help you circumvent the learning curve and run the business on a day-to-day basis. And they offer complete training and support once you’re up and running.

Plus, franchises are regulated by the state in which you live. So they need to be somewhat on the up and up about what they offer. They cannot… under any circumstance… predict or promise how much money you’ll make. But that doesn’t necessarily stop them from painting a pretty rosy picture (if you know what I mean).

The downside to franchises is that while they can teach you to measure windows for mini-blinds or coach business-owners, they don’t always teach you everything you need to know about how to be successful – that is, the best practices for running a truly successful and profitable business that can sustain you and your family.

Plus, realistically, you’ll need more than $25,000. As in the case of every new business startup, you need to cover your household overhead… and still have enough money to do whatever marketing or purchasing of inventory, supplies, and materials the franchise requires.

One final note: Remember that the person enthusiastically telling you the franchise story is a salesperson paid on commission. Tread carefully. Talk to franchise owners who are successful as well as those who aren’t and who are just getting started. If you get serious about buying a franchise, get the help of an attorney to help you understand your rights and help you negotiate terms.