Running a Franchise While Keeping Your Career!
Running a Franchise While Keeping Your Career!
Something that is possible with franchise ownership that may not always work with a start-up business is the ability to maintain your career while you run your business. Although many franchisees rely on their business unit as the basis of their revenue stream, there are more people interested in buying a franchise to generate a second source of income. A flexible franchise option makes this a possibility and can afford some opportunities that other franchises cannot.
Franchise Owner Profiles
All kinds of people that come from different backgrounds with various goals are interested in buying franchises. The individuals that are interested in being a part-time franchisee want the benefits of owning a business but want to invest in a franchise that doesn’t take over their life. People that want to be involved in a part-time franchise opportunity typically fall into one of the following four categories:
- A good portion of their time is consumed by a career but they would like to make additional income on the side.
- They may be involved in freelance work or business consulting and want to add a steadier stream of income to their overall revenue.
- They are not currently employed but don’t want to commit all their time to running a business.
- They have recently retired and would like to supplement their retirement income without taking on a full-time venture.
Keeping Your Day Job
It is becoming more and more common for franchise owners to keep their day jobs as they run their franchise. Whether they are looking to generate additional income or create more security for themselves it is possible to achieve this while running a franchise part-time. This does not mean that you won’t have an active role in your business. Instead you will be taking on a role that dominates less of your time.
While this is not possible with all franchises, numerous companies apply a manager-run model that does not require the constant presence of the owner. This makes franchise ownership simpler and allows the franchisee to keep their current job and the option of opening new franchise locations in the future. These types of franchises will also typically receive a good deal of support from the franchisor.
The ability to run a franchise with a reduced number of hours spent at the business unit is a relatively new concept and the demand for this type of franchise is growing. Technological advances have supported this shift and have made it possible for franchise owners to keep track of their business from a distance. Whether you are interested in growing your income, building your financial security, or starting a new business venture with a part-time commitment then investing in a franchise may be the thing for you.
Author Bio: Orlando Rivera is an authorized internet marketing representative for Supercuts, which offers low cost franchise opportunities. In addition to being an avid rugby fan, he is also very competitive when it comes to participating in dog shows with his bulldog Gordo.
Where Is The Best Location To Open Your Franchise?
One critical factor to consider when you are thinking about opening a franchise is whether your location is suited for a franchise and which franchise suits your area the best. One thing that makes this consideration slightly easier is the notion of franchise territories. Most, but not all, franchises in the US are set up so that they grant exclusive territorial franchise rights to their franchisees to help prevent the issue of geographic competition.
Franchisor-Franchisee Independence and Joint Liability, Redux
In the Tilted Kilt case, the franchisor allegedly published an “employee handbook” for franchisees to distribute to their staff, and exerted significant control over the operation of the franchised outlet in question. If true, these are two factors that typically weigh in favor of finding the franchisor to be a “joint employer” with its franchisee, thereby potentially subjecting it to liability for the alleged harassment.
Why I Have an Issue with the Forbes Franchise Rankings
The 5-Year Growth Rate and 5-Year Franchise Continuity are both great independent metrics of how a franchise is doing on average. As a potential franchisee both of these statistics are vital for selecting a franchise - you want to select a franchise that will provide you with a high return on investment and which will survive in the long run. I think these are, as FRANdata and Forbes suggested, two of the biggest (if not the two biggest) and most obvious metrics for whether or not a franchise is a “good” opportunity for a franchisee. But how do you use these to determine which franchise is BEST? This is the fundamental difficulty in coming up with a ranking system - it isn’t the difficulty in separating the good from the meh from the bad - it’s separating the great from the good and the best from the great. In the case of these rankings I found it to be pretty difficult to comprehend how they differentiated between the top ranked franchises. For instance, if you look at the difference between Discover Map (Forbes #4), Just Between Friends (Forbes #5), & Seniors Helping Seniors (Forbes #6) they all have extremely close continuity ratings and substantially different growth rates. In fact, in the case of these three, the overall rankings are opposite the growth rate rankings. Seniors Helping Seniors is ranked at the bottom of these three franchises despite having a growth rate that is 31 percentage points higher than Discovery Map and a continuity that is only 2 percentage points lower. This suggested to me that continuity was viewed as the dominant factor. But that logic didn’t hold for the rest on the “Economy Class” Top 10, as BrightStar Care (Forbes #7) had the same growth rate as Pop-a-Lock (Forbes #8) but a continuity rate that was 12 percentage points lower. These comparisons show that these were not the only two factors that went into the rankings, which is understandable, but no other factors that are explicitly listed in their results seem to be major factors.