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Most people think that they can only dream of becoming their own boss, starting a small business, and the prospects of growing and expanding. The reality is that the only way to accumulate wealth and secure a financial future is to become a business owner. Once you decide to leap into business ownership, that is just the first step. Next, you have to consider what types of industries, business model types, and opportunities are available to you. 

You can choose a new business startup, or you can opt for buying a franchise. Both come with their advantages and disadvantages. The key is to minimize risk while maximizing the potential for success and profitability. So which one is right for you?

What is a Franchise?

Unlike small "mom-and-pop" startups, a franchise is a business method that helps to expand an existing business by providing goods and services through a licensing relationship. 

Franchisors grant a license to a third party to conduct business under their trademark and trade name, and typically, they also offer things like operating systems help, support, branding, and other perks that make it easy to get the business up and to go and to help sustain its success for those who buy-in.

Business Format - Franchising

In terms of relationships in franchising, there are two types: business format and traditional or product distribution. A business format franchising method is where the franchisor offers the franchisee their trade name, services, and products and usually has an entire system to help operate a successful business. 

The franchisor also offers things like site and real estate selection, operating manuals, brand standards, training, development support, marketing and business support, and quality control measures to help get the business up and running and make it sustainable and profitable for the future.

The franchisor hands over the "keys to the kingdom" of success. Currently, there are over 120 industries that use business format franchising to take their product or service to market, including automotive, education, logging, commercial and residential services, retail food, senior care, medical services, restaurants, and real estate.

A traditional or product distribution format typically has higher sales than a business format. The focus on product distribution is not directly related to doing business but rather on the products supplied or manufactured to the franchisee via the franchisor. The products usually need pre-and post-sale service, as in the automotive industry.

Three Benefits of Buying a Franchise

When it comes to wealth accumulation, the only way to truly get ahead of the curve and stop spending your time helping someone else's fortune grow is by becoming a business owner. A new business startup is a risky proposition. When you consider that, on average, 20% of all new businesses don't make it to their second anniversary and that 45% of them won't make it to the five-year mark, opening a startup business can appear very challenging. Also, when you consider that about 65% of companies won't make it to ten years, the decision to be a business owner can be fraught with fear and trepidation.

 

Proven Systems/Business Models

The most successful franchise owners recognize that they may have to get their hands dirty and get to work until things pay off. If you understand that the fruits of your labor will take time to grow and ripen on the vine before being picked, you are m

Franchises differ, however, primarily because although they are technically a "new business," there is nothing new about them. A franchise is built on a proven business model that also comes with the perks of brand recognition and brand loyalty. Franchises have less risk compared to new business startups, which also means that the average person is more likely to be able to secure financial resources for a franchise as opposed to presenting a new business model to a lender or investor. 

There is also no required learning curve. When starting up a new business, you often have to be very well-versed in the industry and have the experience and expertise to guide the company while also working in it. Franchises do not require that you have any experience at all in the given industry you choose. You are handed all the knowledge you need before you even begin the process, which means that you can switch gears from your previous career and hit the ground running with a high likelihood of success.

For a new business startup, you can't wholly switch paths and start a new venture without becoming an expert. With a franchise, however, all the knowledge you need to run it successfully is given to you; all you have to do is follow the guide as outlined. You are almost guaranteed success without having any real hands-on training or education. It is an excellent way to find something you love to do without all the work of getting up to speed or attending extensive educational training.

In Business for Yourself, But Not by Yourself!

Often, when you begin a new business venture, you do so on your own, and it becomes an issue of making it or breaking it. A new business model, idea, or concept does not come with the guidance of those who have come before; it is a constant road of trial, error, and hard work. However, when you buy a franchise, you're buying the help and support of those who have already been there and done that. That means that you aren't reinventing the wheel; you are just picking up the playbook and putting it into motion. 

Real estate advice, construction plans, employee training, marketing, promotional tools, systems, and operations are already at your fingertips. That increases the probability that you will be successful; it reduces the risk that you won't. Buying a franchise also means that you can start making money from day one because you will be ready to go from when you say you're open. And people will be anticipating your new business because they already know who you are. They can depend on consistency and reliability. They recognize your product or service from the outset.

The Growth Scalability

Growth scalability is also a huge advantage of becoming a franchise owner. Multi-unit franchisees are a great way to continue building your wealth without restricting how much you can fit into one brick and mortar location or how many employees your location needs. When you own a franchise with high scalability, your potential for growth, expansion and profit margins are exponential and ever-widening. With a highly scalable franchise, the sky's the limit. 

With a scalable franchise, you also have very few expenses, including employee salaries, because most of the payroll is based on performance commission, which lowers your risk as a business owner. Unlike traditional business models where you have to pay people on a salaried or hourly basis, you only have to pay people who have already contributed directly to your profit margin with a scalable franchise. Being a business owner is further enhanced by knowing that you have less skin in the game, and you're increasing your potential for earnings with every new team member you take on.

How to Get Started Exploring Franchise Ownership - The Three Ds: Due Diligence, Deliberation, and Don't Go It Alone!

If you are ready to become a franchise owner and enjoy the benefits, the next step is to explore the available opportunities. If you head to the internet to see what is open, you will quickly be overwhelmed by the hundreds of thousands of choices. Although franchises have a higher likelihood of success than traditional startup businesses, that does not mean that they are all right for everyone or that everyone will be successful with every franchise. The Three Ds is the most crucial step to finding the right franchise for a satisfying and lucrative new venture.

Due Diligence

One of the best parts of buying a franchise is knowing what the future will probably look like. Franchises have to file a franchise disclosure document, which the Federal Trade Commission requires. This document is generated annually to explain in detail the terms for owning a specific franchise. It is critical to go through the FDD with a fine-toothed comb - or even better, to hire someone who understands the legalese and what it all means. 

You will want to pay close attention to things like startup costs and ongoing expenses and weigh them against the potential revenue that the business can generate. Also, consider how much support the franchisor will supply to you both initially and then as you grow. Things like employee training and operating systems help will be critical in getting things up and running quickly and working efficiently and effectively from the start. Finally, consider talking with both former and current franchise owners to get a feel for the daily operations and the real "boots on the ground" experience.

Deliberation

Next, think about other factors outside of the franchise itself. Consider personal factors like your personality style and what you would like to do versus what you don't want. You also have to take stock of how involved your family will be and how much support they are going to provide. 

Make a list of priorities, like what types of industries you think would provide personal satisfaction and improve your work/life balance. Ask the hard questions: do you want to work with customers and be the face of the company, or would you rather be behind the scenes? If you are going to buy a franchise, it will take a lot of your time and energy at the start to get it up and to run. How much time are you willing to sacrifice, and what can you live with and can't you if you have to?

Don't Go It Alone

One of the keys to being a successful business owner is learning how to delegate, whether in a traditional startup or a franchise. If you focus your energies on what you do best and let those who are well-versed handle the rest, you won't be spreading yourself too thin, making decisions without having all the information you need, or going outside your range of expertise. The first business decision you will face is finding the right franchise to buy, then taking all the proper steps to minimize risk and maximize wealth accumulation and work/life satisfaction. 

There is no need to dive headlong into figuring out the ins and outs of franchising opportunities, the legalities behind them, or sorting through the many steps you have to take and consider when there are franchise experts like Frannexus there to help. We have been through the process hundreds, if not thousands, of times and dealt with people from all walks of life who have different life circumstances, resources, and ideas about what their goals are going forward. The worst thing you can do is try to go it alone, especially when you don't have to!

Conclusion

When it comes to securing your financial future and building wealth, not just for the here and now but for generations to come, business ownership is truly one of the only ways to get ahead. Franchising is one of the least risky and most rewarding ways to find satisfaction in what you do while reaping all the benefits of freedom and security that come with being your boss. 

At Frannexus, we have all the tools and resources you need to make the most well-informed decision about which franchise has the highest likelihood for success and which one will be rewarding, scalable, and provide you with the rate of return you seek. The statistics are clear: a franchise has a higher likelihood of success than a traditional business startup. There is also a potential opportunity for anyone looking to secure their financial situation. Contact us today to get the process started, and let's find the perfect fit for your new and lucrative future!

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Overview

As we head into a post-pandemic economy, tensions about social distancing are starting to ease. Whether it will be a thing of the past or develop some hybrid of how it used to be combined with social space awareness remains to be seen. One industry hit hard by the pandemic is the food and hospitality sector. Some restaurants were forced to close their doors, while those who pivoted to alter their offerings and processes could stay afloat. Some even thrived in a new age of entertainment and dining.

Statistics about Restaurant Franchise Outlooks

According to leading forecasters, 2022 will be marked with numerous economic challenges, including the restaurant industry. Issues such as supply chain difficulties, frequent COVID infections still taking people from work, and the overall labor shortage and "Great Resignation" are all taking their toll on society as a whole and are being felt in the hospitality industry. 

There are also concerns that the shortage of available goods will drive inflation, leading to a downturn in the economy, and will likely plague the U.S. at least through 2023. In turn, inflation will make grain and beef products cost approximately 60% more than last year. The consumer will eventually absorb those increased costs, which will likely cut back and choose to prepare meals at home.

For restaurants to remain profitable, they must find new menu offerings with fewer choices and higher prices. Currently, consumer prices are already up an estimated 4%, which is an increase that we have not witnessed in nearly a decade.

The good news is that although costs are climbing, consumers are so happy to return to engagement with the outside world that they are willing to shoulder the increased costs. Despite the new COVID variant issues and other economic uncertainties that plague the U.S. and the world, consumer spending is beginning to rebound. 

The biggest hurdle at the moment is the labor shortage. Some workers laid off during the pandemic enjoy the Pandemic Unemployment Assistance that allows them to stay comfortably at home without returning to work. Many restaurants have offered incentive programs like higher pay and more considerable perks to get workers to return. However, those costs will eventually come down the pipeline and fall on the consumer. Labor costs currently are at a 20-year high. Combining that with the inflation rate equals higher menu costs, and how consumers respond is uncertain. 

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As we head into 2022, we collectively look forward to a time when the pandemic is in full recovery, and we no longer have to mask up and keep our distance. We will certainly never forget the events over the past two years, including the effects that COVID had on us - personally, professionally, and economically. One trend that is just now catching up to us is the Great Resignation. According to the Bureau of Labor Statistics, in November 2021, nearly four million employees quit their jobs, which is the highest recorded "quits" in American history. The new high topples the previous record of 3.5 million in 2019. That begs the question, what is behind this mass workers' exodus?

What is Driving the Great Resignation?

No single factor is likely driving the Great Resignation, and the dissatisfaction that workers feel in their position probably started long before the pandemic hit. According to a Microsoft survey of 30,000 people, 41% considered either changing career paths or quitting altogether over the next six months, which means that the number of people calling it quits will grow as we head into 2022. 

When industries were forced to shut down, and people were sent home, they had time to consider other avenues to explore, like being a stay-at-home parent or finally realizing their dream of being a business owner. Being at home and being able to make do has many considering the prospect of finding another way to "make do" instead of just carrying on in their current position. 

Burnout

When questioned why people resigned from their careers, the top response was that they were burned out, particularly in the foodservice/hospitality industry (54%) and the medical field (52%). Burnout is so prominent that the World Health Organization termed the rash of resignations an "occupational phenomenon" of relentless long-term stress. Common symptoms described included:

Burnout can severely affect an employee's loyalty and commitment to their employer. And just one unhappy worker can tank the morale of an entire organization. Lastly, it can often have a domino effect when one person decides to hop ship.

Wanting to Work Remotely

Before COVID, not many people had had the opportunity to work remotely. Remote working, or a hybrid model, was already becoming a popular choice before industries were forced to shut down and send everyone home. The conditions of the pandemic only added fuel to the fire of remote-desirability. A whopping 40% of all workers changing positions indicated they did so to take advantage of working remotely. They believe that it provides a better work/life balance.

Being Mistreated

Workers also expressed that their decision to resign was partly due to being treated poorly by their employer. During the pandemic, companies with a favorable working culture treated their employees kindly. In contrast, those who did not have a healthy culture beforehand continued to create animosity by not caring for their employees. They focused on making changes to protect their organization instead of their workers and engaged in layoffs and other actions unfavorable to employees.

Poor Compensation

Many Americans felt the pinch of the rising cost of living and already being dissatisfied and unhappy, which only gave them more reason to look for better-paying opportunities. It is especially the case in the hospitality and foodservice industries, where workers reported that their top reason for switching positions was higher pay.

What's Next?

Most forecasters believe that the Great Resignation will likely last into 2023. Many of those leaving their positions will be considering a career transition, business start-ups, and other ventures. Many workers are finding that simply getting a new job is not solving their desire for change and a better work/life balance. 

They are looking for a fundamental change in the way they live, the amount of time they spend at work, and the place that employment has in their lives. Once workers turned a blind eye to their dissatisfaction at work because they believed they had no other options, the pandemic made us all feel vulnerable, and perspectives changed about life goals and what is important. 

With incomes becoming stagnant, job security becoming obsolete, and the costs of living and education continuing to rise, the allure of the nine-to-five grind does not make sense for many, especially in Generation Z and Millennials. They are already shifting to find a career more aligned with their passions.

Start by Asking Why You Want to Change Jobs

The key to figuring out your next move is to start by asking yourself why you are so unhappy. Employees who lack satisfaction in their position due to conditions like being underpaid, limited growth opportunities, a lack of meaning in what they do, poor management, and no work/life balance are quickly realizing that they want more than a paycheck. 

The Alternative to the 9-5 Grind: Franchise Business Ownership

For many, starting a new business is scary, and they are not wrong. New business start-ups have a high failure rate, especially in some industries. Franchising offers an alternative to the traditional new business start-up. A franchise has a proven track record of success and a road map to get there. Not only does it come with less risk, but it also comes with the groundwork done of marketing and building a brand. 

Franchises are not only more likely to make it through any economic condition; they come with support, guidance, and a playbook to follow. If you are ready to be one of the many million workers calling it quits to start down another path, then franchising is an excellent way to accumulate wealth, become your own boss, and find a more conducive work/life balance in your life. At Frannexus, we can help you find a new career path that will not only help you find the satisfaction you crave; it will give you the freedom to call the shots and be happier all around. Contact us today to begin finding your new lease on life!

Start exploring franchise ownership!

Like most cliches in life, the midlife crisis, and its accompanying career crisis, have a basis in reality. Research has shown that the midpoint of most people’s lives is a period of dissatisfaction and re-evaluation, particularly in terms of their careers. In fact, satisfaction with life often resembles a U—with the first third of life starting high, dipping to a low point during midlife, and then rising again as people approach retirement. But why?

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Coming out of the pandemic, we have all developed a different perspective on what life is about and what makes us “happy.” As we delve into the ways that COVID has forever altered our vision of mental health and what makes us feel fulfilled, a lot of focus has turned to the issue of entrepreneurship and mental health. It would be intuitive to expect that starting a business comes with a whole lot of risk and stress. 

The first couple of years can be grueling and intense, which you might think could be the road to misery. But the research about entrepreneurship and positive mental health shows the exact opposite. Although there will always be some people who suffer from mental illness regardless of their career path or chosen work position, according to research, entrepreneurs enjoy more health and happiness on average than employees.

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If there is one big takeaway from the pandemic, it is this: life is too short. As people around the globe are returning to some semblance of normalcy and enjoying their freedom again, many are not excited about returning to the same daily grind. With our post-pandemic perspective, many are realizing that life is what you make it.

Millions of workers are considering the prospect of making their employment more lucrative and finding a more fulfilling work/life balance. According to the Labor Department, a record four million-plus workers left their current position in April of this year to pursue another path. 

Typically, throughout history, a large number of people ditching their 9-to-5 occupations signals a robust economy. But thanks to the pandemic, that is not the case. The pandemic has resulted in the worst recession in US history and millions of people out of jobs - but employers around the nation are complaining about labor shortage and how they can't fill many positions.

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A2021 rages on, many who found themselves having to get creative with working restrictions due to the pandemic are anxious to return to life as we knew it. But not all are excited about going back to the daily grind. That has workers around the nation considering the potential of becoming a business owner. Business ownership is a risky proposition. Luckily, opportunities like franchise ownership can help reduce the risk of going at it alone. However, with every new opportunity comes inherent risk. If you are ready to start down the path to franchise ownership, these are the best ways to mitigate your risk.

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When you work to earn a wage, what you are doing is putting hard work in for someone else to succeed. Although you get paid for what you do, the one who is benefiting from your hard labor is the people who you work for. The average person works more than 8.5 hours a day, which is more time than they spend sleeping, spending time with family, and enjoying hobbies. 

According to statistics, 54 percent of workers in the United States find satisfaction with their work, which means that nearly 50 percent are unsatisfied. And the reason that most people feel unfulfilled is that they don’t feel as if they have much potential for growth in their position or to advance in their current field. When you earn a wage, you have very little control over what you are paid or how quickly you move up in an organization.

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One positive came from COVID: the new perspective we have about work/home life and trying to achieve a better balance. If you want to stop trading your time to build someone else’s wealth and want to be your own boss, franchising might be your best option. 

As with any new venture, there are inherent risks. If you wonder whether buying a franchise is worth it, these are some of the benefits and downsides of franchise ownership. Only you know if it is right for you.

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Starting any business comes with inherent risks, but buying a franchise is less of a risky proposition than starting from scratch with a new concept or idea. When you buy a franchise, you buy into a proven business model where the marketing and branding are done, making it possible to start realizing profits earlier on than starting a business from scratch. The type of franchise you buy dramatically impacts your success and profitability. If you are ready to invest in a franchise, pay heed to these top four mistakes and avoid disaster.

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It’s easy to understand why initially someone would find the idea of owning a Chick-fil-A franchise appealing. When it comes to most business metrics for fast food chains, it dominates. QSR magazine found that in 2016, the chain averaged $4.4 million in sales per restaurant, with their locations only being open six days a week. But before you decide to invest, there are three crucial things you need to understand about a Chick-fil-A franchise that may have you rethinking how great they are.

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Before investing in a franchise, you should take several factors into consideration including; your risk tolerance, expected return on investment, salary replacement requirements, and the capital you’ll need to reach success, however you define it. Another factor that new franchise owners don’t consider often enough is how quickly you’ll reach those goals. Sometimes getting where you want to be financially isn’t feasible with just a single franchise unit.

Owning multiple franchise units can be an excellent way to hit your revenue goals faster if you proceed with due diligence, realistic expectations, and a plan to optimize efficiencies across your units. It is possible to obtain your goals, regardless of how lofty they are, but sometimes you have to go big or go home.

Franchises have the advantage over other new businesses of less risk. When you buy into a franchise, you get the golden keys to making it work and reach profitability. You are more likely to obtain funding since traditional lenders see less risk funding franchise businesses. Franchisors will give you a discount on franchise fees when you buy more than one unit. Owning multiple units is quickly becoming one of the preferred ways of lowering operating costs and boosting earning potential for franchise owners.

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