GlobalBX

Reuters:

Prior to the economic downturn, Eric Diaz was managing a department that handled futures systems for Merrill Lynch in New York. Today he’s a full-time pet groomer, riding around Hudson County, New Jersey in a tricked out Mercedes van replete with two 65-gallon water drums, a hydro tub and a host of shampoos, conditioners and other doggie styling aids.

“I really love doing this,” said Diaz, who purchased his Aussie Pet Mobile franchise outright in December 2008 after taking a voluntary retirement package from the troubled investment bank in May. He had looked at several other franchises, including check-cashing and tax-preparation concepts before deciding he wanted to get as far away from the financial world as possible.

“I used to go home mentally exhausted,” said Diaz, who for competitive reasons declines to disclose the details of his franchise purchase. “Today I am pressure free.”

Diaz is characteristic of a new wave of entrants into the world of franchised systems, the proven business ideas that after the expense of licensing fees, equipment and other costs, offer would-be entrepreneurs access to operational guidelines, well-known brands, marketing and a network of other franchisees they can turn to for support.

NO MORE MERGERS

“We’ve received the most franchise requests ever from folks who had been formerly working at companies that had downsized,” said Tom Friday, founder and CEO of Knockouts, an Irving, Texas-based chain of franchised hair salons catering to men. “They don’t want to go through any more mergers.”

According to recent surveys from the franchise research firm FRANdata, the majority of people polled at franchise expositions who were seeking data about opening their own franchisees – some 46 percent – were in the 40-to-55-age bracket. The second-largest group, representing 28 percent of respondents, were entering retirement age at 55 to 70 years old, according to the firm, which surveyed hundreds of participants attending five expositions in 2008 and 2009.

“Those that are over 40 are interested in changing careers,” says FRANdata President and CEO Darrell Johnson, adding that in this difficult financial environment older candidates are likely to have more access to start-up capital amid scarce bank financing.

That was the case with Bill Johnson, a newly minted operator of a children’s mobile party franchise called Games2U. Johnson, who operates near the Gulf of Mexico in the oil-rich town of Lafayette, Louisiana, purchased his franchise outright three months ago for roughly $165,000, including franchise fees. The former owner of an oilfield services company came out of an eight-year retirement after he saw his nest egg take a substantial hit in the stock market. Johnson says he knew it would be difficult to find a job working for someone else at age 59, so he took a chance on the franchise.

Now he spends his days driving a souped-up party van from house to house, as fun-frenzied kids scramble inside to play Xbox and Wii, and jump at the chance to roll around in giant, child-sized hamster balls. Plus, Johnson gets to spend time with his two daughters, who he says are learning valuable lessons about running a business.