Am I too young to invest in a franchise?
Franchising is not just an old man's game. Here are five ways to make it as a young franchisee.
Sam Christopher Lim
SVP for Marketing and Strategy, Francorp Philippines
At the young age of 26 years old, Ivan Kenneth Taw decided to leave a promising marketing career behind to become a franchisee of convenience store chain 7-Eleven. Four years later, he now owns two 7-Eleven outlets, and wants to own more outlets in the near future.
Taw is just one of the many young franchisees in the country today, who have taken to franchising as a viable alternative to corporate employment or starting their own business from scratch.
It used to be that franchising was seen as an “old man's game,” seen as a great investment for experienced professionals who are looking to retire early. Now, franchisees are getting younger—some parents have even taken to purchasing affordable food cart franchises as graduation gifts for their children in order to get their feet wet in managing a business.
Indeed, franchising is a welcome alternative for some young individuals. After all, unemployment is still a pressing issue—even as the country's unemployment rate has decreased to 5.4 percent in July 2016, that still leaves around 3.7 million unemployed, 76.4 percent of which are millennials between 15 and 34 years old.
If you are a fresh graduate or a young professional looking to franchising as an alternative career path, then follow these tips on how to make it as a young franchisee.
1. Assess your motivation.
Whether you're young or old, buying a franchise should be a well thought out decision. What are your motivations for buying a franchise? If you're doing it just because you can't find a job and want something to keep you busy while finding the right career, then it's not a good start and the franchise business will inevitably suffer for it.
Contrary to what most believe, owning your own franchise business is not going to be easier than holding a corporate job—it also requires a lot of hard work from your end. You will be in it for the long haul, as most franchise contracts last for around three to five years. And beyond the expected profit, what owning a franchise business can also give you is experience and growth, which might prove useful once you actually decide to put up your own business.
2. Research your options.