If Franchising Is Your Back Up Plan, Get A Job!
By John P. Hayes, Ph.D.
A reader wrote to me:
"I am between careers. I was laid off in January from a 27-year engineering
career. I'm trying to juggle two possibilities at one time . . . (1)
interview for jobs when they come up and, (2) look at franchise opportunities. I
am continuing to research franchises as, frankly, a backup plan. . . I'd
definitely like to get your opinion . . . ."
My take on this
Here’s my opinion:
If your "backup plan" is franchising, that's probably not going to work. If
it's not your passion to own a business, you probably shouldn’t do it. Owning a
business is challenging because there are so many decisions, pitfalls, expenses,
etc. If it's not your passion to own a business, specifically in this case a
franchise, don't do it.
Bottom line: Franchising never makes a good "backup plan."
Unfortunately, due to the recent (or, depending on who you believe, current)
recession we're likely to see a lot of misfits in franchising. People have their
backs to the wall financially. When their unemployment runs out and they've used
up their savings -- what are they to do?
Lots of folks who have a vested interest will tell them: "Buy a franchise!"
That spells disaster for them and for franchising. It won't help franchising
when these reluctant buyers, who never really wanted to own a franchise, fail
and return to corporate America in a couple of years when jobs are again
plentiful. The aftermath of failures and disappointments will further damage
I could be wrong. Hope I'm wrong. But history tends to repeat itself!
. . . John P. Hayes writes several franchise-related blogs
He is a 30-year franchise veteran and has been a franchisor, franchisee and an