The senior franchise boom is happening. Currently older Americans are becoming the fastest-growing segment of people buying franchises. In 2007, 20% of franchise owners were over the age of 55. Today, that number has increased to 28%, a 40% increase in the past 9 years.
Franchising offers a successful solution for the "working worried" according to Matt Haller, a spokesman for the International Franchise Association. Below are the top 10 reasons franchising can help a retiree gain back the annuity, freedom, work-life balance and financial rewards they need...without having to break the nest egg.
1. Proven Concept
Arguably the best benefit of buying a franchise is joining a company with a proven concept. Franchisors have built their success by continuing to perfect their product or service.
2. Tried and True Business Systems
The second most important benefit of joining the franchise system is having access to the tested business models and systems. As you begin to build your franchise there will be systems in place to ensure your business's well-being. Having a road map will help you to get off your feet quicker and turn larger profits.
3. Streamlined Training
No matter what business you decide to enter you will need some sort of training. When you start from scratch you have to rely on your experience, friends and the internet to help you through the unknowns. When you choose a franchise, they will put you through advanced and streamlined training to ensure you are fully equipped to run your business. Many franchisors have training programs for your employees too!
4. International Visibility
With each individual franchise comes it's own location based marketing. On top of that most franchisees pay dues to an advertising/marketing fund. With these funds the franchisor will purchase advertisements to increase global visibility and increase sales for all franchisees. So, with minimal dues, you will gain access to the traction created from expensive commercial ads spots, billboards, radio and the like.
5. Name & Brand Recognition
It can be hard for new independent businesses to break through all the noise. With thousands of companies, many which are in your chosen industry, it can be difficult to build a platform for yourself. When you choose a franchise you will enter with pre-existing brand recognition which will give you a leg-up on the competition before you even open your doors.
6. Buying Power
By using your franchisor's name you will be able to capitalize on vendor relationships. Many franchisors partner with outside companies that they recommend you use for supplies and marketing. These partnerships are to ensure you are getting the best deal for the best products. Not having to worry about supply testing and cost comparison will give you more time to work on other aspects of the business.
7. Quicker ROI
Those opening a business later in life will need to grow their return on investment quicker than most in order to begin building annuity and supplementing the paychecks they've grown accustom to. Thanks to proven franchise methods owners can expect to turn a profit quicker than they would starting from scratch.
8. Territory Analysis
Before you purchase your franchise, your franchisor will analyze your territory to evaluate if the location will be able to provide sufficient profit. They will also determine how much territory you should buy, how many competitors are in your area and if their are any other franchisees within your radius.
9. Financial Support
In order to purchase a franchise you will need to pay the initial franchise fee. This number will vary depending on the industry and territory. Many franchisors provide financing and other financial assistance to help you in the beginning stages of your business. They will also have pre-existing deals with loan companies should you need additional help.
10. Continual Support
Even after you have chosen your franchise, analyzed your territory, paid your franchise fee, completed your training, purchased your supplies and initiated your marketing your franchisor will continue be there for support. You will never feel alone with a community of owners and experienced franchisor that are only a phone call away.