Franchising: An Ideal Route for Second Act Careers

Franchise Expo West Welcomes Aspiring Entrepreneurs to Denver, Oct. 6-8

For: AARP | By Jim Mastandrea of MFV Expositions

 

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The Baby Boomer generation is reaching an age of transition, but this generation is treating retirement and the prospect of their “senior years” much differently than previous generations. People in their 50s and 60s are finding that retirement ages are extending into years beyond, as more and more individuals are seeking second-act careers to pursue their passion of business ownership.

Don’t worry if you don’t have a background in entrepreneurship or knowledge in the sector of new business you want to pursue. A franchise opportunity might just be your ticket to a fantastic new career. For many, opening a franchise is a smart equity building move later in life since franchisees can immediately leverage a successful business model with built-in support and the backing of a well-known, well-established brand. While the world of franchising is huge, there are plenty of educational resources to tap into to help guide your journey to franchise ownership.

Franchise expos are a great place to start exploring the franchise industry. This year, the premier franchise event in the western U.S., Franchise Expo West, will be taking place at the Colorado Convention Center Thursday, Oct. 6-8. With investment levels starting at less than $5,000, potential business owners will have the rare opportunity to meet face-to-face with more than 200 franchise brands at nearly every investment level spanning a variety of different vertical industries. Attendees can also take advantage of more than 60 free seminars and five in-depth workshops in addition to one-on-one consulting, financial discounts, and notable small business speakers such as the host of CNBC’s The Profit, Marcus Lemonis.

Getting into business for yourself is a life-changing decision, involving many choices along the way. Setting yourself up for success requires careful planning and research. One of the first considerations facing a second-act career in business ownership is navigating the franchise model. With this model, a franchisor licenses the rights to its name, operating procedure, designs, and business expertise to a franchisee. Benefits of franchising include an established template for success, brand recognition, shared marketing, corporate training, and support. The two main types of franchise models include:

• With product or trade name franchising, the franchisee uses the trade name, trademark and/or product from the supplier or manufacturer. Frequently used in the auto, soft drink and gasoline service station industries, this model consists primarily of the distribution by a single supplier of manufactured products to dealers who in turn resell to and end consumer.
• A second type franchise model is business format franchising, in which the franchisee uses the franchisor’s product/services, trade name, trademark and the prescribed business format. This model ensures the franchisee has extensive knowledge and support in a variety of business activities including financing, accounting systems, legal support, training, operations, marketing, and promotions.

The franchise industry has made national headlines with the announcement of its impressive Franchise Business Outlook: 2016 that shows for the sixth consecutive year, franchise businesses will grow at rates that exceed non-franchise businesses, outpacing the economy. The report includes staggering statistics announcing a 3.1 percent increase in job creation to top 9.1M, the addition of more than 13,000 franchise establishments, and economic output estimated to hit $994B. Additionally, a study by FranNet, a private franchise business consulting company, showed a 91 percent success rate for franchises compared with a 49 percent success rate for independent small businesses.

For those looking to pursue a second-act career, the franchise industry is an attractive sector for consideration. What better place to start your journey than the Franchise Expo West. Last year, more than 8,000 attendees from 35 states and 24 countries flooded the convention center with the opportunity to meet and speak with over 200 exhibitors and gain educational insight from franchising’s finest leaders.

The Franchise Expo West costs $10 to register in advance and $20 at the door,  register at www.franchiseexpowest.com

About the Author

Jim Mastandrea is Group Show Director for MFV Expositions.

Call him at 201-881-1626 or send him an email jmastandrea@mfvexpo.com for additional information. Please visit http://www.mfvexpo.com/ for more information on franchise expos.

 

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