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Displaced Executives Look To Franchises For New Careers
By Gordon Dupries

Displaced executives who conclude that owning a business has become their most viable option often see franchising as a halfway point between complete independence and maintaining a link with their past corporate environment. People who are used to working in a system and understand the economies of scale associated with a multiple unit organization often find franchising a perfect match. Many people who want to own a business do not have a start-up idea nor can they find an existing business that offers a good fit, and that's where franchising opens a whole new universe of options. There are literally thousands of franchised businesses to choose from in 60 different industries. The key is which one is right for you and where do you find it.

Franchising allows an individual to utilize the many years of training they have received in corporate life and put those skills and talents to work in their own franchised business. Franchising allows an individual to buy into a proven concept thereby keeping to a minimum the risks associated with a startup business.

Franchising today offers a diversity in cost of entry as well. Although the average franchise purchase is around $150,000 there are a growing number of franchises that offer business-to-business services for under $50,000. Many of these business are well suited to executives who have hands-on service skills or have a marketing background and want a home based business.

Although experience is generally not required in a particular industry to join a franchise system there are definite things to look for in selecting a franchise:


• Visit and talk to as many franchisees as you can. Assess how they view the system; how their skills may match yours; and, whether or not they would buy that franchise again if given the chance to start over.
• Visit and get to know the franchisor. You should determine if you can work with that organization and whether they will make a good "partner" and trainer.
• Consult any professional advisors you think will be helpful from sources of franchise ideas to attorneys who specialize in franchising and be sure to interview your franchise attorney first by asking for a free 30 minute consultation.

Be aware that no matter how good the franchising statistics sound every business involves risk. It is your job to assess that risk and to make an informed decision on what is right for you.

When evaluating a franchise, among other things, you should address the following questions:


• How well known is the system?
• How much room is there to grow?
• Is the franchisor an industry leader?
• How good is the training
• How good is the on going support?
• Do you get a guaranteed and protected territory?
• What is the total cost of the franchise including working capital?
• How long has it taken others to break even?
• How much does the typical franchisee earn in your system?
• Do you believe in the franchise management?
• Are the royalties and advertising fees fair and well utilized?
• Can you assign or sell your franchise?

Franchising continues to grow faster than the U.S. economy and there are currently over 550,000 franchise owners. This growth can provide a strong alternative for the displaced corporate executive ready to break free from the insecurity and lack of control in the job market today.

Gordon Dupries is president of FRANNET San Francisco a FREE franchise consulting service based in San Rafael, California, Since 1990. Tel. (415) 491-4452 gdupries@frannet.com www.frannet.com/gdup/html


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