Out of Work? Consider Buying A Franchise – Part 2

Earlier this month we discussed different options for those who are currently unemployed or recently heard they will be receiving a severance package and asked to look for different opportunities. While buying a franchise isn’t for everyone,  considering the idea is always a possibility after leaving corporate America.

Shortly afterwards, I read this article  in the Detroit News (online) referencing several people that did just that, take severance packages from big Detriot companies and open a local business.

Here’s a link to the story – Workers Open Franchises With Buyouts

Throughout my blog posts, I typically advocate the idea of franchising. But I do want to warn you that franchising is not for everyone. There are several resources out there to help you decide if you should consider buying a franchise, and if so, which one might be a good investment for you. There are a few very useful quotes in the article I also wanted to highlight. Here’s the first from Nick Bibby, a franchise consultant:

Experts warn that the costs of franchising can be high even for those with a solid line of credit, and that life as a franchise owner often evokes challenges unlike those encountered in the corporate world.

“That’s not necessarily a wise thing or a good thing,” said Nick Bibby, principal of franchise consultant Bibby Group in Shreveport, La. “Buying a franchise is in no way, shape, or form a safety net. That’s a huge misconception.”

Karen Spencer, a friend of mine and a CEO of FranSystems, a franchise consulting company based in Atlanta, GA, also helps paint a more realistic picture saying that she has several clients who have invested their entire life savings and seen it melt away.

Whatever you do, be sure you use all of the resources you have available (and contact me any time!).

Jack

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