Choosing the Right Franchise

Graduating College? Franchising Might Be for You

Graduation_Day_by_skooxWith a competitive job market and entry level jobs hard to come by, entrepreneurship is an increasingly appealing idea for new grads. Franchising has been an option but can be less accessible for recent college graduates, especially when they have little or no credit history, little collateral for loans, and not very much of the experience needed to be a successful franchisee.

However, it is possible, if a recent grad is driven enough to get ahead in the business owner game. But starting young certainly has its downsides. One college grad who became a franchisee was quoted as saying, “I pictured myself having employees and playing golf, but I basically hauled junk for two years. If you don’t put in 90-hour weeks, you’re not going to succeed,” in a 2007 New York Times article. Nothing has changed since then in terms of what a new franchisee can expect.

Of course, that’s just as true for new franchisees who’ve been out of school for years, and sometimes also for new wage slaves working their way up the corporate ladder. As a new graduate, you have less to lose, so it’s a great time to take a chance on yourself.

If you’re looking into franchising as a post-college career, these questions can help you determine whether franchising is right for you. If you can check off most of the items on this list, you might be ready for franchising:

  • You’ve worked with entry-level employees and understand how to manage them.
  • You’ve built up some positive credit history, reduced debt as much as possible, and saved up a few months of emergency expenses.
  • You have family members willing to invest in your franchise — and you’ve talked about what happens if the franchise fails.
  • You’ve worked alongside a franchisee, developed a mentor relationship, and have someone outside your franchisor to turn to with questions.
  • You’ve learned accounting and business management, either in school or in real-life situations.
  • You’re prepared to live through some more hard work and frugal living while your business gets off the ground. 

If you recognize yourself here, franchising might be right for you. Look for a franchise that has strong mentorship programs, lots of help to train franchisees, and low capital requirements.

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