Why Baby Boomers Are Buying Franchises
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According to FinancialPost.com, it has been observed that more and more people in their 50’s and even 60’s are interested in franchising. But it is not actually just franchising that people in this age bracket are interested in. A lot of baby boomers have opted to purchase businesses to supplement their midterm retirement plans. People are no longer relying on the retirement plan like in the past. A lot of these baby boomers want to retire in 5-10 years, and to prepare them for that momentous occasion of retirement, buying a franchise business is their top priority.
For the part of the franchisor, this boom among baby boomers means that they should restructure their franchises to accommodate this group. As many franchisors have noticed that while in the past, Canadian immigrants are the ones who would buy businesses the most, however it is now a different scenario. Baby boomers have come to play in the big league.
However, there are some loopholes in this scenario. A lot of the baby boomers do not necessarily have the experience or capacity to run a successful business. Some of them also believe that by having a franchise business they can recoup their investment in a year. But of course, that is not true. Any business requires hard work, so baby boomers should not expect their business to flourish if they plan to be absentee owners.
So what do baby boomers need to do to be on the top of their game? They need to know their business prospects inside out, which lowers the chances that they fail. In addition, seeking the advice of a specialist is important. A franchise lawyer should also be consulted, so they know what their options are and how they can exit if the business fails.
Canadian baby boomers such as Jerome Pulcine, who acquired the master franchise rights in Ontario for Decorating Den Interiors, are turning toas a means to prepare for retirement. “One of the reasons we began looking at was to build a business and eventually sell it,” he said.
Mr. Pulcine expects the influx of Boomerto intensify. “I think that’s going to continue big time for the next five or seven years,” he said. “It’s going to change a lot of industries.”
Mr. Ryan March, managing director of franchise recruiting and consulting firm NetworkInternational adds, “However, he said, some people in this demographic lack the entrepreneurial flair to pull it off, given many have worked permanent, full-time jobs for 30 years. “There are some preconceived notions that you’re going to line your pockets in ‘year one’ because it’s a franchise, but that’s not normally the case,” he said.
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