The average age for retirement is between 65 to 67 years young, but we think age is just a number! If you've recently retired and are looking for a new way to spend your time, you may want to join many of your peers who are looking into starting a franchise. Franchises for retirees can be found in countless industries, and they include various investment levels to suit your budget. If you're wondering whether a franchise is right for you, here are some tips on how to get started.
Franchises for Retirees: Is Franchising for You?
Before you make the leap to become a franchise business owner, decide whether franchising is the best option for your retirement. First, ask yourself the following questions:
What Field Do I Have Experience In?
At this point in the game, you deserve to do what you love and love what you do. You've had decades of experiences that have given you a competitive advantage in certain areas, and you've undoubtedly figured out what parts of any job you love and which ones you want to delegate.
Look into what franchises are available in your state and see if any of them appeal to you. For example, maybe you love attending local sports activities and have experience in food service — perhaps buying a Totally Nutz food cart or kiosk sounds like a fun way to interact with your community!
What Am I Passionate About?
Maybe your heart breaks for single mothers, and you want to find a way to help them with employment. You could look into starting a housecleaning service like MaidPro, The Maids or Molly Maid, which require a comparatively small amount of investment and staff training.
Or perhaps you want a low-pressure job with minimal overhead where you can interact with new people. The BrickKicker Home Inspection or HomeTeam Inspection Services train franchisees to analyze the integrity of a home for buyers, sellers and real estate professionals. With the right background and training, you could be managing your own team sooner than you might think.
How Much Time and Money Am I Willing to Invest?
Contrary to what anyone tells you, starting any business is neither cheap nor easy. If it were, everyone would be doing it and making a ton of money! But there are some franchise options that do start at the low end of investment (as far as running a business is concerned).
Franchises that don't require a storefront or inventory (such as travel agencies, medical billing companies, and employee verification and reference check services) can all cost around $20,000-$50,000. Companies that print signs, fix garage doors or clean carpets can cost around $40,000 to get started. If you want to join a restaurant chain franchise, expect to spend around $1 million for a McDonald's, Carl's Jr. or Jack in the Box. With so many different types of franchises requiring equipment ranging from just a computer to a fully stocked storefront full of expensive, specialized equipment, you can easily see there are hundreds of options for you to choose from.
Is Franchising the Best Financial Investment for Me?
The next crucial step is talking to your family members and financial planner. Your decision isn't going to affect just you, so it's important to get your family's input on whether this is the right choice for all involved. They may be worried about your health or the financial investment, so it's beneficial to hear their point of view up front. Your family might also have some ideas about which franchise you should choose and how they want to be involved in making this a family business.
You should also meet with your financial planner to see how much money you need for your retirement years. If the business doesn't succeed, will you be able to provide for yourself and your spouse? They'll also be able to help set a budget for this new business investment and create targets around how much you'll need to earn each month to be profitable.
Where Can I Find Lists of Franchises?
Once you decide to move forward with your franchise purchase, it's time to decide what business you'd like to become part of. There are several websites that can tell you where to find the best franchises to partner with.
- Entrepreneur has a list of the top 500 franchises in 2018, along with the initial estimated costs (from minimum to maximum dollars needed), the price of ongoing fees, support options and more.
- Franchise Opportunities and America's Best Franchises let you sort franchises by industry, state, and budget; they also highlight new franchises. Both of these have informative blogs that can give you the answers you're looking for as you research which franchise is best for you.
I Chose a Franchise! What's Next?
Once you've narrowed down which franchise you want to purchase, you'll need to create a business entity to legally establish your business. Although you're working under the umbrella of the franchisor, you'll be considered an independent contractor. This means you could be liable for anything that happens at your location, or if something negative occurs because of a product you sold.
A legal business entity will protect your personal assets in case these situations (or others) arise. The easiest way to create a business entity is to contact the business experts at Incfile. We'll help you to choose which entity is right for your new franchise, and we'll even file your paperwork with the state and IRS.
Once you've talked to your family and financial planner and are confident in which franchise to purchase, contact the franchise of your choice from the above lists — or go directly to their website to find contact information. They'll tell you exactly how to get started on this fun and exciting journey. Don't forget to officially form your business entity as you start your company!