Former franchisee and franchisor Dr. John P. Hayes is the Titus Chair for Franchise Leadership at Palm Beach Atlantic University in Florida. His program teaches students to use franchising as a strategy for creating wealth.
“Don’t buy a franchise; you’re just buying a job,” say the franchise critics.
If you didn’t know any better, that could be true. It’s quite possible to buy a franchise and get a job. And for people who struggle to hold on to a job, it could be a good option. But most franchisors aren’t interested in selling franchises to job seekers. Franchising is intended for people who intend to build wealth.
Franchise critics could be helpful if they gave this advice: “Buy a franchise if you have a plan to build wealth, but not simply because you want a job.”
Therein lies the root of the problem. People buy franchises for many reasons and they are often misguided, if not wrong reasons. They buy franchises because they want to change their lifestyle, or be the boss, or improve their status in their community or within their family, or – well – replace a job.
These are not good reasons. They may be motivators for buying franchises, but they’re not good reasons for buying franchises. Sad to say, many franchisors, knowing these are not good reasons, will sell franchises anyway.
You should buy a franchise because you want to build wealth. Period. End of story.
And you should look for a franchisor that thinks that way, too. A good franchisor is eager to help you see the Big Picture. Whether you own one or multiple units of a brand, when you give up your ownership—hopefully by selling to another franchisee – you should take away much more than you invested. Who can do that with a job?
Savvy franchisees become wealthy people.
They find an opportunity, a brand, and before they invest in it they create an operational plan that includes their successful exit. Before they start working they know where they’re going, and while it may take them 7, 10 or more years to get there they never lose sight of why they bought the franchise.
Future wealth motivates them, drives them, and helps them overcome the obstacles that would trip up other franchisees.
When people buy franchises with a plan for wealth, they don’t think of their franchise as a job. Nor should they. Franchising is a strategy for ordinary people who plan to become wealthy.
