While various sources report that most franchisees are in their 40s and 50s, franchise ownership is becoming increasingly popular with Millennials. In other words, if you are thinking about buying a franchise in your 30s, you are not alone. In fact, the Franchise Times recently published an article highlighting “[a] new wave of investors . . . storming the franchise mergers and acquisitions game,” all of whom are in their 30s.
Of course, you don’t have to buy dozens of existing outlets to get into the world of franchising. Most first-time franchisees start by buying a single franchised outlet directly from the franchisor. If you are in your 30s and are thinking about buying a franchise (or buying multiple franchises), here are some tips from national franchisee lawyer Jeffrey M. Goldstein.
5 Tips for Buying a Franchise (or Multiple Franchises) in Your 30s
1. Make Sure You Are Prepared for a Long-Term Commitment
As a franchise owner, you need to be committed for the long haul. Buying a franchise is not a sure thing. While buying into an existing system with a proven concept and recognized brand can help you succeed, your success ultimately depends on you.
For many people in their 30s, buying a franchise means leaving a career they have worked to build over the past 10 to 15 years. This is a big decision, and it is not one to be taken lightly. Before you take the plunge, make sure you have all of your ducks in a row, and make sure you are truly prepared to do whatever it takes to build a successful business.
2. Explore Several Different Franchise Opportunities
Many people get interested in buying a franchise because they are attracted to a particular franchise opportunity. While it is important to be passionate about the franchise concept you choose, it is also important to explore several different franchise opportunities before you make your decision. If you become emotionally committed before you consider the business, financial and legal issues involved, you could end up making a very bad—and very costly—decision.
3. Carefully Consider Your Financing Options
Another decision that requires careful consideration is your source of financing. While some people use their retirement savings to fund their franchise ventures, this can be especially risky if you are relatively young and won’t have a lot of retirement savings left over. There are several other financing options available, and you should consider all of the options for which you qualify.
4. Do Your Due Diligence
Once you narrow down your list of potential franchise opportunities, it is time to do your due diligence. This is—and should be—a time-intensive process. You need to take the time to gather as much information as possible, and you need to be prepared to dismiss concepts that are not viable options.
5. Carefully Review the FDD and Franchise Agreement (and Negotiate if Necessary)
Finally, before you commit to moving forward, you should have a franchisee lawyer review the FDD and franchise agreement. You should also have your lawyer negotiate the franchise agreement if necessary. Most franchise agreements are heavily one-sided; and, if you move forward blindly, you could find yourself facing risks and costs that far outweigh the value of your chosen franchise opportunity.
Learn More About Buying a Franchise from National Franchisee Lawyer Jeffrey M. Goldstein
For more information about buying a franchise in your 30s, schedule a free, no-obligation consultation with national franchisee lawyer Jeffrey M. Goldstein. Call 202-293-3947 or send us your contact information online to get started today.