WHY NOW IS THE BEST TIME TO START A FRANCHISE!
Over the past few months, I have seen many people become frozen with fear allowing uncertainty to rule their lives. I have also seen many others who are taking bold and calculated risks because they understand that fundamentally the bigger the disruption, the greater the potential opportunities that will arise from the disruption.
As a business owner myself, I understand that entrepreneurship encompasses two sides of the same coin: risk and reward. In many ways, entrepreneurship is a balancing act – containing and minimizing the risks while leveraging all of the possible rewards. And franchise ownership is unique in that through its proven business model, it reduces financial risk considerably while increasing the potential upside for its franchisees. It is a way to get into entrepreneurship with minimal risk and greater efficiency.
If you’ve ever thought about starting your own business, don’t shy away now. This may be the best time to start your own franchise. Here are some of the compelling reasons why my clients are deciding to begin their business now.
“Recession proof” your career
40 million. That’s the number of people who have lost their jobs since the pandemic was declared on March 6. While the number itself is astounding, it masks the true toll of these numbers. For every person who lost their job, one family’s future was jeopardized.
If this is you or you are in fear of getting laid off, this may be just the right time for you to start exploring business ownership. Don’t allow the vagaries of the economy or a virus dictate your future. As a franchisee, you own your own business and cannot be laid off or furloughed from it.
Use your time in quarantine wisely
As the world paused, many people also paused in their lives. They took a deep introspective look at their careers and asked themselves the hard question: am I living the life I want to? The answer that came back to many of my clients was: no.
Starting a business is tough in any climate. So why would anyone think about starting a business in the midst of a global pandemic?
Professionals around the country are starting to realize that they want to escape the 9-5, generate wealth, and finally live life on their own terms. Many are realizing that franchise business ownership could be the opportunity they have been looking for, to reinvent their careers and take back control of their destiny.
Take advantage of funding opportunities
On March 27, 2020, the president signed the CARES Act, which provided billions in relief to American workers and small businesses. As part of this program, the Small Business Administration is offering various funding options that make it easier than ever before to get funding to begin a business. Coupled with lower interest rates that we have not seen in a very long time, business ownership has become a viable option for many people.
Vet how “pandemic resistant” a brand really is Franchises represent some of the most successful businesses in the world. Now, more than ever, franchises have been put to the test. In the face of great disruption and threat, they have had to nimbly adapt their business model to not only survive but thrive at a time when most other businesses have suffered. Many of the brands I work with have changed their operational and marketing tactics. Through pricing and vendor management strategies, these brands have pivoted to continue to grow through the pandemic. Some have had the best quarters they have ever had in their history.
Good franchisors communicated daily with their franchisees as they pivoted their business models in real time to minimize store closures, reduce employee layoffs, implement new initiatives to keep customers, help franchisees obtain PPP funding and renegotiate leases with landlords.
As you explore whether franchising is the right option for your career, you will be able to speak directly to franchisees to understand how their brands supported them through the pandemic. Were they able to continue to grow and make money? Did they have to shut down their location? As businesses reopen, what support did they receive from their franchisors? This is the perfect time to understand whether a franchise is truly recession- and pandemicresistant.
Leverage a softening real estate market
Unfortunately, many businesses will not be able to survive the pandemic. They will vacate their storefronts and offices. Commercial landlords will have real estate available for which they may be willing to negotiate more favorable terms. Many franchisors are negotiating such favorable real estate deals for their franchisees. These cost savings can be considerable.
As Meister Eckhart said, “And suddenly, you know… it’s time to start something new and trust the magic of new beginnings.”
Are you ready to begin the journey of finding your perfect fit franchise? The time is now.
Faizun Kamal is an award-winning franchise coach, nationally renowned public speaker, and best selling author. As CEO of The Franchise Pros, Faizun coaches people nationwide on making the transition from employee to entrepreneur. Her best selling book,
is the guide that thousands of clients have used to find their “perfect fit” franchise!
Faizun received her BA in Women’s Studies and Environmental Studies from Mount Holyoke College. She holds a Master’s degree in Public Policy and a Master’s in Business Administration from the Johns Hopkins University. She is also a graduate of Stanford University’s acclaimed Social Entrepreneurship Program.
www.linkedin.com/in/faizunkamal
In fact, of the 450,000+ franchise units in the United States, 53 percent are currently owned by either multi-unit or multi-brand franchisees.
Diversification, a recommended strategy in designing an investment portfolio, aims to reduce risk while maximizing return, which is why diversification is poised to become the latest trend in franchising.
As multi-unit franchisees seek new avenues for growth, increasing numbers of them are adding new concepts to their franchise brand portfolios, because savvy business owners know that it’s best not to put all your eggs in one basket. Below are a handful of reasons why all aspiring or current franchise owners should consider diversifying:
• INDUSTRY CHANGE – Sometimes an industry can change due to market forces, technology or unseen events such as COVID-19. If you have all of your investment in one brand and that brand is impacted, it may be a challenge to quickly pivot to another industry if you were not already invested into it.
• BEST PRACTICES – You can learn and implement best practices that could be used across industries and brands. That experience can help to elevate your entire portfolio.
• STAFF – We know that hiring quality staff can be a challenge, especially when there is limited upward mobility. When you have growth opportunities within your portfolio, it can provide incentive and a future path for your staff to want to stay and grow within your franchises.
• COMPLIMENTARY BRANDS – Acquiring customers is a focus every day for a business owner. But just as important is maintaining that customer. If you have complimentary brands or can extend the life cycle of a consumer through a different brand, it helps to drive down the cost of obtaining those customers.
Our franchisees at Kiddie Academy come from various backgrounds, but all have this in common: a desire for work-life harmony, financial independence and building something valuable for their community. Many of our franchisees became multiconcept franchise owners when they opened their Kiddie Academy, while others expanded their portfolios after joining our community.
Rakesh Patel became a Kiddie Academy franchisee after a decade of franchising experience in tutoring. He owns two Kumon Math and Reading Centers, which run mostly in the evenings after school lets out. “As my kids got older and their activities multiplied, we needed a business that was symbiotic with our new schedules,” Patel says. Along with noticing a need in their community for quality educational child care, Patel saw promise in Kiddie Academy’s Monday-Friday, normal business hours schedule.
Patel says his previous franchising experience made his transition to a Kiddie Academy Franchisee much easier – understanding the Franchisee/Franchisor relationship, having gone through the site
selection process previously, and even the fundamentals of small business ownership, such as accounting and customer service. Patel also urges others to bring their own experiences to their new franchise – and look for a franchisor who appreciates and welcomes it. “In my experience, Kiddie Academy has been more helpful and flexible than our experiences with other franchises.”
Franchisees Katie and Larry Moore own and operate two very successful Kiddie Academy locations in Chicago’s suburbs, with plans to continue expanding. After experiencing success in the educational child care industry, the Moores decided to expand their portfolio to include a senior care franchise. As Katie Moore says, “My husband was looking for other work options and looked into senior home care and we wanted to franchise due to our success with Kiddie Academy.”
Being involved in another franchise concept gave Katie and Larry a leg up in the new industry. “The business knowledge and knowing the support that you get from a franchise – knowing to choose a franchise rather than just attempt it on our own.” Katie says she and Larry chose to break into a new industry because she doesn’t like to have all of her eggs in one basket. “I would not feel comfortable if my husband and I were in the same industry and that was all we had going for us. At any given moment, an industry can change.”
Aleem Hasham had a diverse portfolio of franchises before he signed on as a franchisee with Kiddie Academy and opened his first location in North Albuquerque. Hasham was previously involved with Cendant (now Wyndham) and Holiday Inn (IHG). He is also currently involved with Chevron through a licensing agreement.
“The decision to expand our franchise portfolio was for a multitude of reasons – the primary being, working within an industry that positively contributes to the quality of the life of the community within which we reside and that is considered essential, even in the midst of a global shutdown,” he says. “Diversification is key in long term investments and planning. Often, we view different industries as challenges as opposed to opportunities. Expansion into a different industry should be viewed as an opportunity learn and grow.”
Jeff Brazier joined the Kiddie Academy franchise development team in 2016. In his role as Chief Development Officer, he works closely with franchise candidates to guide them through our franchise discovery process. Jeff has over 16 years of business development experience. Brazier began his career in the sports industry, with an emphasis on baseball, where he transitioned into business development. Jeff holds a BS from Towson University and MS from California University of PA.
www.franchising.kiddieacademy.com
While they come from all walks of life, many have been parents that left demanding careers in corporate America in search of a better quality of life for themselves and their families.
In many ways, the rising costs associated with housing, childcare, education, health insurance, and other essentials have pitted work against family. Even when people are not on the job, the ability to disconnect seems impossible. And the growth of teleworking has blurred the lines between work and home. Despite proof that worklife balance leads to higher employee morale, better job satisfaction, and more productivity, it seems as our society is moving in the opposite direction.
In recent years, I’ve noticed work-life balance as an ever-present topic in our society, and there is a heated debate over whether it is attainable. Particularly, work-life balance becomes increasingly challenging when working professionals become a parent and are determining if they have to make sacrifices in their careers.
According to the Bureau of Labor Statistics, two-fifths of American families have children under 18 (approximately 33.6 million families), and, among marriedcouple families with children, 63% have both parents employed.
Throughout my nearly 30 years in franchising, I’ve had the pleasure of talking with countless franchise owners about their goals for their business — and themselves.
A growing number of parents and caregivers are looking for more flexible career paths. Entrepreneurship, particularly franchising — where you are in business for yourself, but not by yourself — is a solution to many. It’s given them the freedom, flexibility, and the family time they crave. What’s more, franchising
provides people the opportunity to mold their new career as an entrepreneur into whatever they want it to be. There are thousands of franchise opportunities with some of America’s most beloved brands across a variety of industries, from retail and restaurants to education, service, travel, and more. These opportunities come in many forms, including traditional brickand-mortar business, mobile franchises, and home-based franchises.
In running their business, franchise owners have the opportunity to pursue a full-time career or choose to be an active investor and have a partner lead the day-to-day operations with a strong managerial team in place. Through my experience as CEO of Primrose Schools, I’ve seen successful franchisees who have scaled their business while raising young children, as well as those who have decided to grow only after their young children got older or left the house all together. I value that franchising allows franchisees the opportunity to make business decisions that enable them to have the work-life balance they desire.
When researching franchise opportunities, consider these things:
Your passion(s)
Unfortunately, many people feel stuck in jobs they don’t personally care about. But entrepreneurship allows you to follow your passion and do something that is emotionally and financially rewarding. Learn what’s available by reviewing awards and rankings, like the Entrepreneur Franchise 500, an annual ranking of the franchises with the greatest brand strength.
The support you need
Investing in a franchise enables you to tap into the network of resources and tools that an established model provides. When you’re researching potential franchises, be sure to find out how involved the franchisor is and what type of support they provide throughout every phase of your franchising journey. Find a franchisor that has designed a franchise program to make the most of the effort owners put into their business.
The cost of entry
Investment costs for franchises run the gamut, from a few thousand dollars to several million. Consider your budget and the minimum net worth and liquidity required in order to narrow down your options. Forbes’ ranking of America’s Best and Worst Franchises breaks down its ranking by initial investment. From there, you can review each brand’s franchising website to find additional details pertaining to whether or not it’s a good fit for you.
As a mother and grandmother, I am a passionate advocate for franchising because of the opportunities the industry provides for parents and non-parents searching for their ideal level of work-life balance. We know through recent studies that as parents evaluate how best to manage their careers with the responsibility of parenting, they often struggle with feelings of guilt. Parents should not feel guilty daily for the decisions they make in order to care for their families. While corporate America is aware of these challenges, and many companies are making progress, it’s not there yet. In the meantime, there is a viable option for better quality of life awaiting through franchising.
Jo Kirchner is CEO of Primrose Schools, the leader in providing premier early education and care to children and families in the United States.
www.primroseschools.com