The prospect of a corporate layoff can be both terrifying and exciting for workers. On the one hand, the thought of job insecurity can be nerve-wracking. On the other hand, layoffs also represent opportunity to transition to a new career path or open their own business. Owning a franchise business is a popular path after a involuntary unemployment. Opinions vary on what the best franchises to open are, as each individual has unique goals, experience, and resources to consider. To help demystify the process, the International Franchise Professionals Group (IFPG) and our membership of franchisors, franchise consultants and vendor members break down the questions you should ask and topics to consider when exploring which franchise to open.
The first thing to consider when evaluating various franchise businesses is to determine what type of business you’d like to own. If you are an experienced marketer, for example, you may find A marketing-based franchise, such as a web design firm, could be a great choice. Experienced salespeople may be drawn to franchise concepts involving B2B sales or business-to-consumer sales. Consider which industry have been strong during the pandemic, such as franchises specializing in delivery services, virtual marketing, and cloud-based software solutions. Additionally, a franchise business that requires minimal staff, typically in the form of a home-based business, could be a great fit for those trying to start or expand their passive income stream.
Once you’ve narrowed down the types of franchises you are interested in, the next step is to evaluate its financials. Some of the key metrics to review include the total investment amount, franchise fees, and royalties. Additionally, it is important to research the current competitive situation in the franchise. Check prices of similar services within your local area and in comparable markets. Some franchisors may even offer a profitability calculator to help “what-if” different scenarios to confirm profitability.
You should also learn more about the franchisor’s track record. After all, this is the team you will be partnering with, so it’s important to ensure that you have confidence in your decision. A few areas to look at include the number of franchisees within the system, review customer feedback, and read through their offerings. Ask yourself if the franchisor’s expectations are realistic and achievable.
As you evaluate franchise opportunities, it is also a good idea to look into the franchisee support they offer. Specifically, look for a franchise unit run by the franchisor, or an independent franchisee, to get a firsthand look into the business. You should ask the franchisees questions about business operations, ROI, and franchise support. Once you have considered these aspects, you may be ready to make your decision.
At the same time, it is wise to seek out professional assistance. Franchisors are usually well-versed when it comes to relating offers of their owned company, but it is a good idea to obtain an objective opinion when making such a big decision. The IFPG franchise consulting team is available to help aspiring entrepreneurs through each step of the franchise selection process.
At the end of the day, there is no one size fits all answer to the what are the best franchises to open after a corporate layoff question. Your experience, goals, and financial resources are defining factors in selecting the right business for you. To get started, consider your talent and skillsets, review the financials, look into the franchisor’s track record, evaluate the franchisee support, and seek out professional assistance to make an informed decision.
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