History of Franchising to Now (Infographic)

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A History of Franchises to Now (Infographic)

The franchising industry is currently in a good state.  Growth in the industry continues to outperform the larger economy and there are 750,000+ franchised businesses in the U.S., cumulatively generating $1 trillion in sales a year.  Franchises are big contributors to economic growth in the country, begging the question, where did franchises come from? 

European Origin

It turns out the roots of franchising lie in several different times and locations, the first being in feudal France and England.  In fact, the word “franchise” comes from the Anglo-French “franchir,” meaning to overcome or breakthrough an obstacle.  In feudal Europe, lords would grant peasants rights to use parts of their land in return for fees.  Common uses for the land would be running a marketplace or operating wells for the larger village.

Later in England, the franchising model arose again to meet struggles in the public house industry (e.g. pubs, bars, taverns).  It was often difficult to start a public house due to the high capital costs required and a lack of access to financing.  These problems eventually started affected brewers’ business in the country as their market for alcohol became unstable due to these persistent distribution issues.  Brewers responded to this market change by offering public house owners financial support in return for an exclusivity agreement over the beverages sold in the establishment.  Thus, publicans could open businesses more easily and brewers had consistent demand for their products.

Franchising Comes to the United States

Isaac Singer is the man credited with inventing the first modern franchise.  Singer was a sewing machine manufacturer with a popular and effective product, but insufficient cash flow to expand his manufacturing efforts.  In order to grow his company, I. M. Singer & Co, Singer began to solicit local merchants and salesman to distribute his product.  By training them to service and repair his sewing machines, as well as encourage them to become regional salesman for the product, Singer engaged in one of the first forms of mass marketing.

Singer’s next innovation was to develop a contract outlining compensation and duties for all parties involved.  The standardized nature of these contracts allowed him to recruit franchisees very quickly and predictably, and acted as one of the first franchise agreements.  By 1860, Singer’s company was the largest manufacturer of sewing machines in the world.  This was remarkable in the post-Civil War Era; especially considering the company was founded in 1951.

The Development of Modern Franchising

Franchising grew rapidly in the 1950s and 1960s as the Greatest Generation recovered from World War II and the Baby Boomers began increasing demand for all sorts of services and products.  Soda manufactures like Coca-Cola and Pepsi had primitive franchise systems in place at the time, distributing their soda syrup to local franchises that would then carbonate, bottle, and sell them to their local communities.  However, it was Ray Kroc, the founder of McDonald’s, who would spark the rapid proliferation of the franchise business model.

Starting off as a milkshake mixer salesman, Kroc discovered that one restaurant he frequented was buying a large number of his high-efficiency mixers.  The owners, called the McDonald brothers, had developed a fast food delivery system providing customers with quick and consistent meals.   Seeing its potential as a larger business model, he quickly became their licensing agent and began to recruit franchisees, eventually purchasing the company in 1961.  McDonald’s went on to open more than 1,000 units in just 10 years.  Following his success, brands such as Kentucky Fried Chicken, Midas Muffler, Holiday Inn, and more refocused their efforts towards franchising.

Franchising Today

Franchising remains on the healthiest industries in the United States, continually showing strong growth and high job creation numbers.  Take a look at the infographic below from the Wall Street Journal to find out more about the current state of franchising in the United States.  There are a lot of perks that come from becoming an entrepreneur and engaging in the franchise business model.  If you would like to explore opportunities in franchising and know more about the possibilities, contact the Entrepreneur Authority today for a no-cost, no-obligation, no-pressure consultation or call 866.246.2884 to speak with one of our FRANtastic consultants.  You can also attend our free monthly webinar, “Franchise Ownership as a More Stable Career Path.” Just click on the link to register!

Top Restaurant Trends in 2016 (Infographic)

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The food industry is in a state of rapid change, with the rise of fast casual dining leading the way.  Fast casual restaurants are the most rapidly expanding sector of the restaurant industry, and chains make up 95% of all establishments according to Technomic .  There are a lot of opportunities for franchisees to jump into a dynamic industry, but it’s important to stay on top of the top restaurant trends in 2016.  Customers are changing they way they eat more frenetically than ever, and businesses will have to work hard to keep up.

Nutrition

2016 may be the tipping point in the fight against American’s unhealthy lifestyles.  The World Economic Forum has previously rated the United States 43rd in the Health and Wellness of its citizens, the worst among all major (and many minor) industrialized nations.  Americans have known for a long time they were promulgating unhealthy eating habits, and the lesson seems to slowly be sinking in.  Researchers at the Harvard T. H. Chan School of Public Health recently created a healthy eating scorecard evaluating the quality of Americans’ diet over the past two decades.  The country’s score has improved 10 points, moving from 39.9 to 48.2 (with 100 being a perfect score).  Restaurants are adapting to this trend: 65% of chefs said nutrition was hot trend in 2016.

Local Sourcing of Ingredients

Along with the health eating trend comes an emphasis on locally sourced ingredients.  Customers are starting to decide where to eat based on where the food came from, and local is king.  44% of chefs say that local sourcing is the food trend that has grown the most this last decade, and even national brands are making this a selling point.  Chipotle’s brand image is built on its “Food with Integrity” commitment, where it sources the majority of their ingredients through their local grower initiative.  Even brands like Subway, Taco Bell, and Noodles and Co. are eschewing artificial flavorings for naturally raised ingredients, while providing healthier options on their menus.

A More Adventurous Palate Means More Opportunities

Americans are losing their picky eating habits.  Ethnic flavors and cuisine have seen an explosion in popularity these recent years, with customers dining on chili spices, fermented ingredients, vegetarian spreads, and more.  While this is good for variety, it is sure to put pressure on larger restaurants to constantly innovate and source new ingredients to keep up with changing trends.

Future Trends

An emphasis on the environmental sustainability of a restaurant’s ingredients and operations is expected to be a big issue in coming years.  Already, 41% of chefs say that it is the trend that will grow the most in the next 10 years.  Restaurants will be looking to reduce water use, food waste, and encourage responsible ingredient production.  In addition to an environmental focus, expect global flavors arriving on your dinner plate as African and Middle Eastern staples become mainstream in America.

2016 is a great year for variety in restaurants: both in the food they serve and the way they serve it.  If you’re interested in operating a restaurant, consider becoming a franchisee of a successful brand.  There are a lot of perks that come from becoming an entrepreneur and engaging in the franchising business model.  If you would like to explore opportunities in franchising and know more about the possibilities, contact the Entrepreneur Authority today for a no-cost, no-obligation, no-pressure consultation or call 866.246.2884 to speak with one of our FRANtastic consultants.
You can also attend our free monthly webinar, “Franchise Ownership as a More Stable Career Path.” Just click on the link to register!

 

Managing Small Business Debt

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Debt is an unavoidable part of starting and running a business, and managing debt effectively has large ramifications for your business’s bottom line.  It’s good to be on a firm financial foundation before you start your own small business, as inevitably your personal and businesses finances will become mixed.  Half of small businesses fail in their first 5 years largely due to insufficient capital, poor credit arrangements, and too much debt .  It behooves you to have minimal debt when you seek financing, as you will have less stress overall and will be able to put more capital in your business.  This is rarely the case however, as 49% of small business owners are in major debt while 75% of startup capital comes from credit cards, bank loans, and lines of credit.  Managing all this debt is difficult, and many entrepreneurs struggle to find an effective way to reduce their debt load.  Let’s explore some strategies and principles to evaluate how you manage your small business debt.

How do we Manage Debt?

Debt is everywhere in the United States.  For example, nearly 70% of Americans own at least one credit card and most have more than 1.   However, most people don’t know how to effectively pay off their loans.  The most effective way to manage debt is to pay off the loans with the highest interest rates first.  Staggeringly, of those surveyed, only 3% of individuals allocated money in a near optimal way.  Most individuals instead focus on repaying their smallest loans first, in an effort to reduce the number of outstanding loans they have.  This is called being “debt account averse,” where instead of reducing your total associated cost of financing you focus on reducing the number of debt obligations you have.  Why is this?  There are three explanations for this behavior:

  1. Prospect Theory: Individuals are much more sensitive to a loss than a gain of an equal amount. The urge to get accounts back in the black as fast as possible is greater than the urge to analyze interest rates and calculate the optimal pay-off plan.
  2. Goal Gradient Theory: Individuals are motivated by a salient goal. For example, when coffee shops hand out free coffees after a certain number of purchases, they are encouraging you to buy more coffee than you normally would by using an artificial goal. People find it easier to pay off small debts first, and get more satisfaction from paying them off quickly.
  3. The final reason is that people often don’t understand how interest rates work or how to organize an optimal pay-off plan. It’s hard to visualize how your debt load changes over time and its effects on your business.

Are you Liable for Your Business Debt?

Personal liability is always a complicated issue when it comes to small business.  If you are currently handling liability issues with outstanding debt, it is always best to consult with an attorney to get advice for your particular situation.  With that said, let’s take a look at typical arrangements you find in small business financing. 

Sole Proprietorships and Partnerships

In this legal structure, you and your business are legally the same, therefore you are personal liable for all your business’s debt.  Your partners are also liable for the business’s debt, and not proportionally—your creditors can take your partner’s personal assets to pay off all the business’s debts.

Corporations and LLCs

You and your business are separate legal entities in this arrangement.  In theory, you have no personal liability for your business’s debts but this is not always the case.  It’s difficult to build a perfect wall between your personal and business finances.  Here are ways you can become personally liable for your business debt: 

  • You’ve signed a personal guarantee for debt. Small corporations and LLCs have trouble finding credit due to the limited liability construction. Banks want assurances that an entity can and will repay their loans so they often ask for a personal guarantee. A personal guarantee essentially has you give up your limited liability so creditors can turn to your personal assets for debt repayment if necessary.
  • Offering property as collateral for debt.  Banks often have small business owners put up their house or other property as collateral for loans, creating real risk that a business failure means losing your house and other important assets.
  • Signing a contract in your own name.  If you are careless and sign a contract in your own name and NOT as the corporation or LLC, you will be held personally liable for the debt.
  • Using personal credit cards or loans to fund the business.
  • Fraud, misrepresentation, or sloppy record keeping.  If you like on loan applications or failed to create a formal legal separation between you and your business, creditors will bring you to court and find you personally liable for all debt.  This can be called “piercing the corporate veil,” where the court establishes you are using your corporation or LLC as a front to reduce liability, when in fact you are personally operating the business.

How to Reduce your Business’s Debt Load

There are a few different approaches to reducing your total debt load.  The first and easiest is to raise and invest personal capital.  Leveraging your personal wealth or reaching out to friends and family can be a useful short-term solution to financing issues.  Another important part of reducing your debt load comes from efficiently cutting costs.  Analyze your balance sheet closely and determine where you can make the necessary cuts to meet your debt obligations.  It’s often useful to contact both your customers and your suppliers in an effort to drum up business by offering deals on your product or service, negotiate cheaper contracts and payments, or try to reduce your accounts receivable turnover.  Additionally, reach out to creditors if you are struggling to meet your debt payments.  They’ll help you refinance your debt or consolidate all loans into one payment. 
If you’ve tried all this but can’t seem to make the math work on your loan repayments, there are some measures of last resort you can turn to.  Let the business fail and file for bankruptcy.  Click here to learn more about bankruptcy options available to small businesses (http://www.nolo.com/legal-encyclopedia/chapter-7-chapter-13-bankruptcy-small-business-owners.html).  You can also sell the business and liquidate all its assets to pay off debts if you’re not too highly leveraged.  Hopefully, if you learn how to manage debt effectively, you will never have to be in this scenario.

How to Build a Strong Network (Infographic)

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Networking is an integral part of any business endeavor.  Building a strong network means making connections with a group of people that can provide you with advice, opportunities, social capital, and most importantly, business for both you and your contact.  Unfortunately, many people don’t network effectively or have reservations approaching peers; in fact, a ComRes poll has shown that 62% of British adults have never attended a networking event, and 51% of those that have report feeling uncomfortable while networking.

Although understandable, there’s no reason why you should be nervous or tense at a networking event.  Remember, networking should ideally be a mutually beneficial activity, a “you scratch my back I’ll scratch yours” relationship.  With that said, let’s take a look at some principles to keep in mind while networking.

Have a goal in mind

Ask yourself why you’re reaching out and trying to create new business contacts.  Perhaps you’re trying to build a new client base, or exploring an industry you aren’t familiar with.  You could be new to an area and seeking employment or partnership opportunities.  It might be as simple as looking for advice from experienced peers for your business endeavor.  The key is to enter into a networking event with a clear goal of what you want.  That way, you don’t find yourself lacking purpose and therefore drive to connect with others.

Build a Target List of Contacts

It isn’t feasible to network with everyone in your industry, so you have to be discriminating in which relationships you invest time.  Using your goal as a guide, create a list of people you feel it would be valuable to reach out to.  A valuable contact is someone who is interested in helping others solve a problem, and who you can provide help as well.  Remember, the goal is not to have the largest stack of business cards possible at the end of the night.  It is much more important to have a number of smart, helpful people who you can engage in a mutually beneficial partnership with.

Build Candid, Reciprocal Relationships

Networking is supposed to build give and take relationships so both sides feel like they are gaining from the encounter.  This requires that you be a good listener, and a good sharer.  First of all, ask your contact about the basics to get the conversation started: What does your company do? What is your customer base?  What sets you apart from the competition?  Don’t hesitate to discuss aspects of and issues with your business as your candor is generally rewarded.  Try not to keep it all business and connect with the other person in a more personal way: discuss your kids, hobbies, or your terrible jump shot.  This makes you memorable and more than just a number in a contact book.

Maintain Your Relationships

The most important part of networking is to maintain those relationships you’ve spent so much time developing.  After connecting with someone, send them a thank-you note, set up a meeting, forward them interesting information, or bring them new business.  If you have high-quality contacts they will respond in kind, and this back and forth forms the fundament of a strong, profitable relationship.  This is the part of networking most people don’t pay attention to.  For the same reason you have to regularly tend to your garden, you must tend to your business contacts to keep them healthy.  Don’t spam them though!  Be useful, not unhelpful.  It’s important to not burn any bridges, as you never know when somebody will be able to help you, or you to help them.  Remember the golden rule, “do unto others as you would have them do unto you.”

Are Entrepreneurs Made or Born?

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The ages-old nature/nurture debate has gone on for decades. Is a person the product of their environment (nurture) or the genetic traits and qualities passed down to them from their parents (nature)? Applying this question specifically to entrepreneurship – are entrepreneurs made or born? In other words, what is more important to your entrepreneurial success – your genetic endowment or what you do and experience out in the world?

In one sense, the way I posed the question isn’t fair. I asked it in the form of an either/or question. The reality, not surprisingly, is more complicated because it’s really a both/and situation. Both matter, and knowing where you fall in the mix will help you be more successful in your entrepreneurial efforts. 

It’s surprising how many people still hold to the belief that entrepreneurs are born, meaning that you’ve simply got to have a certain set of personality traits and inner characteristics to be a successful entrepreneur. Many such lists of traits and qualities have been posed over the years. Perennial favorites that seem to appear on most lists include the following:

  • Ability to spot opportunities.
  • Willingness to take calculated risks.
  • Tolerance for failure.
  • Strong internal locus of control (belief that actions taken affect outcomes).
  • High drive to succeed.
  • Tolerance for uncertainty and ambiguity.
  • Willingness to question and go against the status quo. 

It’s completely fair and accurate to say that if you’re born with all of these qualities in spades, you’re going to naturally have a whole lot easier time becoming a successful entrepreneur than someone who’s got less of them.

But the plain fact of the matter is that many of these traits can also be thought of as skills, which means they can be improved through education and training. You can learn how to get better at spotting opportunities. You be trained in how to tolerate failure (and learn from it). You can be taught how to not let uncertainty and ambiguity cause so much discomfort. You can be schooled in how to question the status quo. 

In a way, this both/and approach to entrepreneurship should come as no surprise. After all, most people know of a pair of siblings or friends where one was clearly smarter in terms of raw IQ but the other one always got the better grades because they worked harder at it. That’s why my answer to the nature/nurture debate when it comes to entrepreneurs is this: You’ve got to take what nature gave you and nurture along to reach your entrepreneurial goals.

There’s also an important implication here about self-knowledge. You need to know your natural baseline on the qualities listed above in order to come up with a nurturing game plan that will boost yourself in areas needing enhancement. Taking some time for honest self-assessment is one way to determine your baseline. Another way is to take any number of entrepreneurial self-assessment surveys. A great collection to choose from can be found in the article Entrepreneur Self Assessment: 9 Professional Tools and Tests. Armed with this kind of knowledge, you’ll be well on your way to entrepreneurial success no matter what your starting point. Good luck!

4 Local PR Strategies to Boost Franchisee Business

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Striking the right balance between corporate and local marketing is tricky.

Franchise brands are most successful when they have a professional, consistent image portrayed to the public, but one which is also localized enough that smaller-scale communities feel in touch with it.

So, how can franchisees help drive business through marketing targeted to customers in their area?

Media attention is key – it crafts a story and helps reach as many people as possible, often without costing as much as other marketing campaigns.

Here are 4 Local PR Strategies to Boost Franchisee Business:

1. Have a creative, exciting franchise launch. When you’re preparing for the grand opening of your franchise, go a little outside the box to garner media attention. While a well-crafted press release will work to get some media to cover your story, the best may need more to get their attention. If you’re opening a golf franchise, for example, one idea would be to hold a mini-competition on the day of a launch with a local celebrity competing against the public.

2. Partner with a transitions employment program. Work with a local organization that helps people with disabilities transition to the workforce. Whether it’s veterans, young adults with autism, or underprivileged youth trying to secure employment, this is not only a great way to help those in your community – it’s also a great story the public would want to hear about.

3. Sponsor fundraisers, sports teams, and amazing individuals. Is there a major fundraiser happening in your area? Partner with it. Know of a sports team that doesn’t have money for jerseys? Sponsor them. By helping a needy cause in your community, you’re directly giving back to your customers. The media gravitates to goodwill stories like this, and will most often be happy to provide some coverage.

4. Get to know the media in your area. Seems simple enough, but sometimes it really is about who you know and not what you know. Even if you have a top-notch press release or a great story that needs coverage, knowing a reporter can make it that much easier to get a story covered when you need it. You can sometimes meet and interact with journalists on Twitter and Facebook, or can meet them at various fundraisers and community events.

To learn more about entrepreneurship through franchising, attend our free monthly webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.

You may also register by calling 866-246-2884.

4 Reasons Military Veterans Make Great Franchisees

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Why are military veterans so well-suited for the franchise industry?

It’s as if their core characteristics have been specifically tailored to becoming a successful franchisee.

In fact, that’s what the military has done. Through their military training, veterans have acquired the most important skills required to becoming a successful franchisee – helping them become successful leaders in the industry and superb entrepreneurs.

Here are the Top 4 Reasons Military Veterans Make Great Franchisees:

1. The Ability to Follow Systems and Structure. In the military, vets had to following systems and structure to succeed in their missions. Through this intense training and lifestyle, military veterans have this ability ingrained in them – and are able to seamlessly transfer it to the franchise industry, where they flourish in following tried-and-true processes.

2. An Almost Unparalleled Hard Work Ethic. Owning a business takes work, and franchising is no different. But hard work yields success – and military veterans know how to push through tough obstacles to get the job done. On top of this, they are also able to lead and inspire a strong work-ethic culture for their employees – leading to even greater success.

3. Ability to React and Adapt Under Pressure. As a new franchisee, things are bound to happen fast: from customer complaints to supplier issues, anything and everything will most likely occur at least once – sometimes at a moment’s notice. What military veterans do best, however, is react quickly under pressure and find efficient solutions to problems.

4. Veterans Stick to the Plan to Complete Missions. There is no place for rogue members in the military. Instead, military veterans were required to closely follow their missions in order to succeed together. In franchising, it’s no different: a franchisee follows the processes set out by the franchisor to succeed, because it’s been proven to work time and time again.

To learn more about entrepreneurship through franchising, attend our free monthly webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.

You may also register by calling 866-246-2884.

Name an Industry and I’ll Show You a Successful Franchise

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Chances are on your way to or from your 9-5 grind you will pass a successful franchise and not even know it. Part of this is due to the fact that the term franchise has become somewhat synonymous with the fast food restaurant and any franchise outside of that niche is barely recognized as one. The other reason I am confident that you will pass by a successful franchise today is that they are nearly everywhere these days touching nearly every industry imaginable. Far beyond pizza and hamburgers, the franchise model has been used to grow various niches from fashion, tools, health care, education and beyond. If you can think of an industry I can likely think of a franchise that touches it in some manner or another. This is great news for the would be entrepreneur who has always longed to become the captain of one’s own financial destiny but never really saw themselves asking “would you like fries with that?” So let’s take a quick look at the breadth of the franchise industry and see if a life’s passion doesn’t just jump up and bite you.

The Benefits of Franchising

Before we take a look at the scope of the industry, let’s first cover very briefly exactly what makes the franchise model so successful. Franchising puts the owner in command of their own destiny without asking them to go it alone. Let’s face it, not everyone is going to become the next Jeff Bezos of Amazon who is going to come up with the next big new idea to make them the next billionaire. That being said, there is a great deal of entrepreneurial talent still trapped in the your standard 9-5 grind because they can’t envision the opportunity out.

Franchising gives the first time entrepreneur not only that opportunity, but a proven business model to follow. In fact, if a franchise doesn’t believe in the new franchisee or the market they are entering they often won’t even both to award a franchise. The franchise understands that their name, brand and reputation are on the line every time they open a new location. So should you find yourself the new recipient of a franchise you can feel pretty good that the experts think you’ve got a pretty good shot at success.

This is of course not guaranteed and those new to the world of franchising have an obligation to do their homework. Talk to other franchise owners and make sure the franchise gives you all the pertinent data. If you do that, then your first franchise can often be the first step in a path towards an empire of franchises that gives you a steady stream of income for the future. It is hard work and there are risks, but unless you’ve created the next billion dollar widget in your basement it is often the safest path to an entrepreneurial future. Enough about the numbers, let’s talk about the passion.

Find Your Passion and Find Your Profit

This is where the full spectrum of the franchise industry comes into play on behalf of the new franchisee. You don’t have to flip burgers my friend. Although, fast-food can offer some pretty reliable profits and you’ll never hear the owner of multiple McDonald’s franchises complaining about being poor. Yet, you can branch out and pick an industry more to your liking. If caring for others has always been your life’s passion you’d be please to know that the senior service industry is one of the hottest niches in franchising right now. From home care agencies that allow seniors to age with dignity and grace in their own homes to those who help seniors move and downsize there are opportunities for you.

What’s great about the senior services franchises is not only do the provide a pretty good return on investment, but the initial investment to get started is actually pretty low. No ovens, grills or major equipment of which to speak. Just a dedicated group of staff or caregivers and you are ready to go. Then again, perhaps educating children is your passion. There are a host of franchises involved with youth from daycare to STEM education and more. That’s right, you don’t have to flip burgers to franchise your way to success as you can educate children in science and math.

If you consider yourself the next Tim “the toolman” Taylor from Home Improvement we’ve got tool franchises for you. Like to help make people feel beautiful? There are countless hair salons you can open. Fancy yourself a fitness buff? Why not open one of the many successful fitness gyms so you can cash in on those new year’s resolutions to lose weight. Pet supplies, accounting services and yes good old fashioned pizza, I think you get the point by now. Find your passion and thanks to the franchise model with a little hard work and determination you will find your profit.

In Conclusion

I’ll confess that perhaps it was a stretch to say that every single industry has a franchise but it is so close to discernible truth that I’ll allow it. Franchising is more than burgers and fries my friends. Once you realize that, it is as if your wildest childhood dreams come true. Yes, there are comic book store franchises so that is not a stretch either. Running a franchise is work and you’ll not hear me be the one to tell you it is the path to easy money. Oh, but it is a path to harnessing your passion and making you captain of your own destiny. Name an industry and I’ll most likely show you a franchise is perhaps what I should have said. Then again, that’s not really as catchy a title is it? Don’t hesitate to reach out if you have more question about franchising and who knows, maybe a future without precedent is right around the corner for you.


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Why Working from Franchise Beats Working from Home

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The gig economy is hotter than ever right now as talented individuals are shedding the corporate culture and heading for the basement with a laptop in their PJs. This trend is being quickened by corporations themselves realizing the quality of the labor force ready to the job they need for them and nothing. If you need a sales report or perhaps web content then just pay someone to do that and skip having to pay for them to attend the company potluck or Christmas party. It is a mutually beneficial relationship where companies and talented individuals get exactly what they want from one another and nothing more. The problem is that freelancers are realizing by the droves that working from home is not quite all it is cut out to be. So that’s why I’ll message this article to those looking to leave the corporate world behind but who still understand the merit of showing up to work each day. If you ask me, working from your franchise beats working from home and I’ll tell you why.

The Great Generational Divide

It might not be sufficient to say that working from a franchise beats working from home for everyone as there is a generational component to it. A modern recent college grad has spent the sum of their entire lives connected online and an isolated setting where every human transaction is digital might come a little more naturally to them. Then, for those of us who have grown up to be accustomed to starting the work day at a particular time and shaking a few hands each day it can come as a challenge.

If you survey new freelancers you will find that one of the most common mistakes they made early on was to ditch the norms and cultural conditions that made one feel like they were at work. Sitting behind your laptop in your pajamas while you eat a bowl of cereal just doesn’t quite feel like work and productivity often reflects that. Moreover, failing to identify when your day ends and when it begins can often result in a complete loss of work/life balance that deteriorates one’s sense of rest. In a nutshell, the stay at home freelance lifestyle is not for everyone and yet that is often the only route burned out employees can see towards cutting the corporate cord.

There is Another Path to Freedom

Despite the popularity of the freelance and gig economy, there is another path that others are beginning to rediscover that not only grants them the freedom from the corporate world but also makes them captains of their own destiny. I say rediscovering because franchising was granting people their freedom long before Bill Gates first touched a computer. The benefit to this method of freedom is that one is allowed to retain many of the aspects of a hard days work that they love without any of the corporate hassle.

There is still a physical location which to go and in most cases even an office of your own. The only difference is that this is your ship now and you are captain of your own destiny. There are start times and end times to work though an entrepreneur’s day truly rarely ends. There are people to connect with, employees to manage and most importantly a proven business model to follow. There is even corporate help from your franchise should you really need it. Namely, you have the support and structure of a job but all the freedom and authority of an industry leader.

Franchises Never Go Out of Fashion

Finally, I’ll submit that working from a franchise beats working from home because franchises never go out of fashion. The gig economy is hot right now, but if you are in your 40’s and 50’s planning on the gig economy as your retirement plan then you might be sorely disappointed. Franchises, on the other hand, will continue to meet a need so long as they continue to have quality leaders to manage them. Taking on your first franchise and managing it in your 40’s can turn into a fleet of franchises by your 50’s. A fleet a franchises becomes a force and income multiplier long after the franchisee decides they do want to spend a little more time at home.

It’s a matter of preference for many, but for me it is a matter of practicality. While individual franchises might have to adapt to compete in the face of changing technology the franchise industry isn’t going anywhere. It is a proven business model that offers all the same structural benefits of the corporate you might miss. Except this time, you’re the captain and how far this ship sails you is up to you. Leave the basement in the pajamas for the next generation. As for me, I’ll stick with shaking a few hands everyday and building income into the future.


Franchise Your Way to Self-Employed Happiness

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Don’t we all love it when science confirms something that we’ve always known to be true? Even better is when science tells you that thing you enjoy doing most is actually healthy for you. Personally I’m still waiting for them to confirm that eating bacon stops the aging process, but they did recently announce some other good news for those in the franchise industry. Researchers from two renowned universities conducted a study on thousands of people and confirmed that self-employed people are happier. That’s right, science proved it and you can read the full story here. For those currently considering a franchise this should be all the extra motivation you need to make the leap. Working for yourself does come with a host of challenges, but it’s gotten a bad rap for far too long now. Science just confirmed what I already knew to be true and I’ll explain how you can franchise your way to your own self-employed happiness.

Conquer the Fear of the Unknown

It is no small moment in life when one decides to cut the corporate cord and step out on their own. Most of us have been condition since were young to work a job and wait for those reliable bi-monthly paychecks to roll out. Health care benefits often come from an employer as well things like sick days or vacation time. The thought of leaving all this behind creates a mountain of fear that often tethers people to the paycheck to paycheck lifestyle for the duration of their working years. But what if it didn’t? What if you conquered the fear of the unknown and grabbed you a little piece of this happy self-employed lifestyle?  

It is remarkable that this scientific study collected data from thousands of workers over three different continents and came up with the same conclusion. Yes, self-employed people often worked longer hours and fought the feelings of uncertainty about their income. That being said, they were still universally happier. It is as if all the fears keeping one from making the leap towards self-employment are only visible before you make the jump. Because those who already have made the leap don’t seem to mind them at all and are as happy as can be.

That doesn’t mean it isn’t hard work and it doesn’t guarantee success. But then again, that’s just like the rest of life now isn’t it? The difference is that those with the courage to take a risk get to enjoy the taste of happiness along the way. Now let’s talk about that word risk because that might make this leap sound a little scarier than it ought to be. Franchising offers some great features that help mitigate the risk for the owner. You are not quitting your day job on the speculation that the Chia Pet is about to make a comeback. You are not giving up the security of a steady paycheck on the hope and a prayer that you will become the next Bill Gates. You are cutting the corporate cord to follow a proven business model with the full backing of the very people who created that winning model.

Franchises Mitigate the Risk

Read that headline again because I don’t want to confuse you. I didn’t say eliminate the risk or guarantee success. But it does mean that you are going to have to work really hard to fail if you ever had a shot at pulling this off in the first place. Franchises understand that their reputation and brand are on the line when they franchise out to a new owner. Meaning when you fail that they will ultimately take a hit too. All the leading franchises can offer the market data on the front end that tells you whether a particular franchise is likely to be successful in certain areas. Then, when they issue you the franchise they offer the business model that has proven successful. If you can read a plan and follow directions then you don’t have to be a genius business master to live this self-employed happy lifestyle.

From marketing to management and beyond, there is help available to the newbie franchise owner that is not there when someone creates a new company out of thin air. Franchises are a fantastic way for the would be entrepreneur to cut the corporate cord and break out on their own. It doesn’t eliminate all risk, but it certainly mitigates it. With happiness on the line, those fears should seem a little less daunting now.

Moreover, the security you feel at your corporate job is just as made up as the fears keeping you there. Show me an industry where companies have not gone bankrupt and laid off all their employees. Find me a company in America where there is not at least one toxic manager ready to fire someone without reason. Tell me that you are not beyond accidentally hitting “reply all” to the email where you mock your boss for the message he just sent. Life happens and when you work for someone else you are never the captain of your own destiny.

Master of One’s Own Happiness

Perhaps that is the secret to happiness after all. To simply choose one’s own fate and whether life is good or bad at least it will be your own doing. The science is in and thousands of people across three continents and multiple industries have come to the conclusion that working for themselves is worth it. The juice is worth the squeeze as they say and they are happy about it. Franchising not only puts you in charge of your own destiny but it gets you some pretty good partners to sail with you on your ship. They offer navigation and guidance, but they still need a captain. If you think that’s you then perhaps it is time you too cut the corporate cord and take the first step in your journey towards a happy self-employed life.