Parents Starting Family Business with Franchise Ownership ...

Parents Consider Franchise Ownership Akin to Starting a Family Business

This post was written by Julie on July 17, 2011

Parents Consider Franchise Ownership Akin to Starting a Family Business

While many individuals have invested in franchise opportunities as a way of providing themselves with a certain level of financial security during the economic recession, another segment of businesspeople have opened franchise units to protect the future interests of their children.

According to franchise research and consultancy FranNet, the number of corporate refugees becoming franchisees to safeguard their children?s? futures has increased in the past few years.

?It?s happening all over the country,? said Jania Bailey, president of FranNet, a national franchise consulting firm that helps corporate workers research franchises across the U.S.

and Canada. ?The job prospects for senior-level professionals aren?t great. They?re feeling a bit slighted, they know opportunities are slim, and for new graduates, it?s a horrible market.?

However, by investing in a franchise, parents feel able to give their sons and daughters a leg up on the job market, as well as the security of a regular paycheck.

And while many of these new franchisees? children won?t graduate college for a good 10 to 15 years, buying a franchise unit in today?s economy is akin to starting a family-owned business.

?I know several franchisees who purchased the business for their children?s future financial security,? shares Jay Contreras, Liberty Tax Area Developer.

Contreras adds, ?Many have experienced the recession?s effect on their careers and retirement savings and they want to spare their family from the same experience.?

Consider the case of Diane Langford, who recently invested in a franchise unit in her hometown of Macomb, Minnesota. Langford?s son, Randy, is 25-years-old and saw franchising as a way to jumpstart his dream of business ownership, FranNet reports.

As a result, Langford sought out franchising.

?We still have 10 to 15 years of working left and our son, who recently graduated with a history degree, had few career options,? Langford said. ?Buying a franchise was a less risky way to start a family business and allowed us to help our son.?

If parents have more than one child who plans to work in the franchise, they may want to consider from the beginning how a transfer of management and ownership will proceed many years down the line.

Issues such as children not being prepared to assume the responsibility or not even wanting to run a franchise could come into play. To best handle these issues, it will serve franchisees best if they address them from the onset.

Tags: Business Ownership, family business, franchise, FranNet, FranNet News, Jania Bailey, start a business, starting a business

This entry was posted on Wednesday, July 27th, 2011 at 1:36 pm and is filed under Business Ownership, Franchises, Small Business, Suggested Reading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Source: http://blog.frannet.com/business-ownership/jania-bailey-featured-on-everyfranchise-com.html

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