Author: Kelly McLaughlan

The dream of business ownership may seem unobtainable during a time when so many businesses are struggling or closing altogether. But, when the going gets tough, the tough get going. With these tough times, it feels like the entire world has changed. Change offers opportunities, and it’s a great idea to position yourself to take advantage of them. Certainly, other people who share your interest in owning a franchise business have continued to move forward. According to Franchising.com, Google search trends show that, “[a]fter experiencing a sharp dip in early and mid-March, interest spiked again near the end of the month and has continued to rise in early April.” Embrace your entrepreneurial spirit and move towards achieving your dream of business ownership.

The Gift of Time

When work is busy, it can feel like there aren’t enough hours in the day to get everything done, particularly when it’s researching your dream of business ownership. With orders to shelter in place, we are gaining hours in the day just from skipping the daily commute to and from home. Use that time wisely by beginning to do the diligence it takes to make an informed decision about franchise business ownership. Here are three things you can do:

• Talk to an advisor: an experienced professional who knows the franchise business, preferably from both sides of the equation. The time from the initial consultation to franchise business ownership can take three to five months. Getting started with this critical relationship is a great first step that can line you up to be going into business just when the market is rolling again.
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• Do some research: The franchise world is incredibly varied. There are thousands of franchises across a wide array of industries. Some franchises are better suited to your situation, strengths and preferences than others. In this period of uncertainty, there are franchise businesses that offer better prospects for surviving and thriving as we pass through the pandemic and market challenges. Now, more than ever, it’s important to think and act strategically.
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• Get your ducks lined up: Buying a franchise business takes effort. You need to make sure your family is on board for the change. You need to have your finances organized and ready to present as part of the purchase process. And, while good franchise businesses provide training and support for new franchisees, you should make your own business plan, which will be something you will be required to furnish if you are financing the purchase.

Funding Options Have Never Been Better

The economic stimulus efforts by the federal and state governments, offer multiple aspects that bode well for the prospective franchisee. First, under the federal CARES act, there has been a significant relaxing of the rules for leveraging retirement funds, which means qualifying people can either withdraw funds without penalty or take a significant loan on their 401(k). Second, SBA loans are at their lowest interest rate levels in recent history. Between these two attractive resources, the ability to finance the purchase of a franchise business has never been cheaper.

Franchisor Flexibility

Given the state of the economy, with daily news about businesses shutting down and people losing their jobs, franchisors are justifiably concerned about their prospects. While they won’t publish new terms or relent to any and all demands, they will be open to counter-proposals that will work to the franchisee’s advantage. It’s not necessarily obvious what to ask for and what possibilities to explore, but if you work with a good advisor who can identify opportunities for negotiation, you will find that you have some significant bargaining power at this time.

Joshco Partners has decades of experience in franchising from both franchisor and franchisees sides of the business. If you see this time of uncertainty as a time to seize the opportunity to own your own business and you want expert guidance, contact us today to get started.

The majority of wealthy people in America are business owners, not employees. While many people want to own their own business, most never do; and, studies have shown that the primary reason is the fear of failure. Franchising allows aspiring business owners to bypass the major challenges of a startup and choose an established business with a developed system and strategy.

Business ownership and its process can be complex, confusing, and there are pitfalls to avoid. Instead of trying to do it alone, consider working with an advisor. From the start to the finish, an advisor works with you to guide you towards the best possible outcome. Here are some of the questions that an advisor can help you answer.

1. Where Do I Begin?

You could go it alone and try Google, but a basic search will pull up mountains of information, much of which is contradictory. You’ll find paid advertising, top 10 lists, recommendations for dozens of books, and that’s just what will pop up on the first page of your search. How can you get your questions answered when you aren’t even sure what questions to ask? An advisor with an in depth understanding of franchises will ask you questions instead. By exploring your interests, and providing insight into the franchise industry, an advisor can get your started on the right path.

2. Is a Franchise Business Right for Me?

When we aren’t satisfied with our current work situation, we dream about alternatives. Reality can be very different. Before making a huge leap into the unknown, you need to ask yourself if you really are cut out for owning a franchise business. Self-reflection can only get you so far. A franchise business takes a combination of entrepreneurial spirit and ability to toe the party line. Is this balancing act right for you? The answer is maybe. An advisor can help you figure out what your goals are in owning a franchise business, provide the real story on franchise ownership and help you to figure out if a franchise is in your future.

3. What Type of Franchise Do I want?

According to Franchising.com, there are over 3,000 different franchises to choose from internationally. Food establishments, gas stations, gyms, weight loss centers, accounting, bars, IT services… the range of businesses that have a franchise opportunity is enormous. You want to pick a business in which you can excel. A good advisor will take the time to get to know you and, in that process, help you identify your strengths and passions. Instead of guessing and hoping for the best, your advisor can guide you through the array of options to find a good fit.

4. How Do I Know if I’m Picking the Right Franchise?

Once you’ve settled on the types of franchises that suit your passions and strengths, you need to pick from the enormous list of franchises out there. There are so many additional factors that go in to selecting a franchise. You want to go into business with a reputable company that takes care of its franchisees. You want a franchise that fits your specific needs like location, income, buy-in price, and many other variables that are unique to your situation. Working with an advisor who knows the industry can narrow down your choices to make sure you aren’t wasting time pursuing a franchise that doesn’t meet your needs.

5. How Do I Negotiate A Franchise Agreement?

You are ready to take the plunge. You need to figure out who to talk to and what to say. An advisor with industry knowledge and contacts can make that critical introduction to get you off on the right foot. As you proceed forward with the process of buying into a franchise, an advisor can guide you on what terms you can and should negotiate to your benefit. The franchise agreement is generally a long and complex document. You will have questions, and your advisor can walk you through the terms so that you understand what you are getting into. When it comes time to sign, you will be able to do so with confidence.

At Joshco, we have decades of experience with the franchise industry from both sides of the fence – franchisor and franchisee. We know what questions to ask to get to the heart of the matter, and we work with our clients to make sure that they go into the franchise business with confidence that they have made the right choice. Are you interested in owning a franchise business? Contact us today for a consultation.

The days of staying with the same employer in corporate America for your entire career are over. In the modern workplace, job security just doesn’t exist anymore. According to the Bureau of Labor Statistics, as of 2018, the median years of tenure with current employer for employed wage and salary workers aged 45 to 54 is 7.6. Corporate employees who reach a certain age find that their career is either stagnating or at risk. A few key factors impede a long-term successful career for those who choose to stay in corporate America.

Ageism Pure and Simple

The truth is that the older an employee gets the more age can count against him. Corporate America values youth and discounts seniority and experience. A recent study on ageism in the workplace found that 21% of the respondents experienced age-related discrimination. While the Federal Age Discrimination in Employment Act and state law equivalents are supposed to provide employees protections against discrimination, it is often a “second class” protection. In fact, a recent Fast Company article noted that the majority of employers don’t provide employee training around ageism. This means that older employees are at risk for mistreatment or termination even though it is illegal. 

What’s more, changing jobs to another corporate position won’t necessarily solve the problem. Another study discussed in Market Watch noted that “Workers over 40 are only about half as likely, or less, to get a job offer than younger workers if employers know their age.” In other words, ageism is alive and well in the hiring market.

The Cost of Seniority

Employees who have been around longer cost the company more. Regular raises and promotions mean that they earn more than the entry-level employees. There’s little doubt that experience is a valuable asset, but it may not be as valuable as it costs when two junior employees can do the same or more work for less than the cost of a senior. This fact makes senior employees less attractive both in their current employment and when looking to make a lateral transition. When corporations look to trim the fat, one of the first places they look is their workforce. If they decide to go for layoffs, the more an employee costs in terms of salary and benefits, the bigger the target on his back. 

Up or Out

Not everyone can make it to the C-Suite. This reality is a matter of simple math. As employees rise through the ranks, the number of positions lessen, becoming more competitive and subjective. Anyone with an interest in continued growth and experience is going up against their fellow employees as well as outsiders for coveted promotions. It is a catch-22: employees are expected to show improvement and development, but there are only so many positions available. At some point, it’s time to look at the writing on the wall and recognize that, if you aren’t getting promoted, you are at risk for termination. 

So what can older employees do? Rather than stick with corporate America, take control of your career. Use the knowledge, skills and experience you’ve acquired over the years and apply it to your own enterprise. If starting from scratch doesn’t appeal, investing in a successful franchise can be the right transition into being a business owner. A good, professional mentor can guide you towards the right fit for your needs, make the introductions and facilitate a smooth transition into this opportunity. 

At Joschco Partners, we work with senior employees looking for something better. Contact us to discuss your options.