The No.1 Reason People Become Franchise Owners Comes Down to This One Word While franchise ownership can be incredibly lucrative, money is not the top reason people want to get into this sector.
By Tim Parmeter Edited by Dan Bova
Opinions expressed by Entrepreneur contributors are their own.
I have been working in the world of franchise consulting for about a decade now, and whenever I ask people why they want to become franchise owners, I get the same answer.
Before I tell you what that answer is, let me pause for a moment and ask you the same question: Why do you think people want to become franchise owners?
What was your guess? You're probably thinking, "money."
While franchise ownership can be incredibly lucrative, money is not the top reason people want to get into this sector. The actual reason can be summed up in just one word: control.
Do you want more control in your life?
Does that mean you are a control freak if you want to be a franchise owner? Not necessarily.
This yearning for control is often an indication that you currently do not have enough control over the things that are important to you in life: time with your family, time for hobbies, your schedule, your vacations, your everyday life, and yes… your income.
Related: Franchise Legalese Defined — A Deep Dive Into Franchising Definitions
After all, isn't the dream controlling your own life and what you're doing with it? Franchise owners get the chance to do exactly that, without the risk and pressure of starting a business from scratch.
Control over certain aspects of our lives has become more and more important to us in the modern world. Many of us felt the pain of losing control acutely as we were forced back into the office post-pandemic – there were the issues of early mornings, lengthy commutes, and diminished time with our children and families.
And, of course, money is a piece of the puzzle. When you work for someone else, your higher-ups are the ones who determine your value. Working harder or for longer hours doesn't necessarily increase your salary, nor does bringing innovative ideas to the table… and none of it allows you to build wealth or equity. And at the end of the year, even if you've hit your goals, there is going to be someone saying, "Nice job Tim, now let's increase those numbers by 20% next quarter."
Climbing the corporate ladder is exhausting — and it is even more draining when you feel you are getting pushed out, ignored, undervalued, or held back from achieving all that you know you can. What is the solution?
Well, I cannot speak for everyone — but franchise ownership is certainly an appealing path for many individuals out there. Over the years, I have worked with hundreds of clients, helping them find brands that perfectly align with their goals, needs, and expectations. I often speak to them about the ways that franchise ownership can offer you an enhanced degree of control over your own life, and now I will share the same points with you.
5 ways to take back control of your life as a franchise owner
Franchise ownership offers numerous avenues for controlling your lifestyle, everyday activities and more. Here are a few of my top considerations when I think about the freedoms that franchising can provide.
1. Control your schedule
I will use an example from my own life. I have a 10-year-old son, and I keep my calendar clear in the morning so that I can take him to school. And then I block time in the afternoon so that I can pick him up — not at 2:15, not at 2:17, but at 2:16 p.m. Do not ask me why.
Related: Your Ultimate Research Guide to the Crucial Steps Before Buying a Franchise
I am married to a woman who lives in a different state than I do — and shockingly, we make that work. How? By asserting control of our schedules. Self-employment allows me to build the lifestyle I want with the flexibility that I need, and I cannot imagine it any other way.
When you own a franchise, you will have the flexibility to work when you want to and take time to focus on family, friends, or other ventures when you want to do that instead. Of course, you are going to work hard. That is who you are — but you will do so on your own terms. Ultimately, you are the only one who you have to answer to when you take the afternoon off to see your daughter's ballet recital or your son's saxophone concert.
2. Control who you work with
Imagine your overbearing boss or your annoying coworker who sits just one desk away and constantly talks about her cats. Now, imagine them vanishing into thin air.
As a franchise owner, who you work with is up to you — you are the boss. Who you hire (and who you do not hire) is up to your discretion. Your franchise brand will have an internal team, but you will get the chance to meet their team before you commit to ownership, and you will be able to ensure that any given franchisor is the right cultural fit.
Gone are the days of superiors looking over your shoulder and coworkers grinding your gears. Instead, you get to choose who you spend your time around — and why shouldn't you? As the boss, you are in control.
3. Control your exit strategy
What if you could sell your current job to the next person? Sounds nice, doesn't it? In the corporate world, that is a fantasy — but when it comes to franchising, you do get to cash out when it is time for you to move on.
It might sound strange to think about your exit strategy when you are just starting the journey to owning your own business. You are excited to kick off this new venture, and leaving it behind is the furthest thing from your mind. But it is still an important question to address.
Related: Don't Make These 5 Risky Franchise Ownership Mistakes
In the corporate world, you get a job, you work for your organization, and you get a biweekly paycheck — until the day that you don't anymore. Whether you leave a job on your terms or your employer's, the cash stops immediately. You do not sell your job to the next hire, and while you may have job security, it is never 100% when you are working for someone else.
Franchise ownership is totally different. When you own the business, you do get to sell it to the highest bidder. Or you could choose to pass it on to your family. The legacy potential associated with franchise ownership is huge — I have heard countless stories about multiple generations of families working in the family-owned franchise business. Those stories are few and far between in the corporate world.
4. Control your income
Clients always ask me, "How much can you make as a franchise owner?"
And I always tell them the same thing: "However much you want to."
It might sound like an easy answer, but it is the truth. As a franchise owner, your income is within your control — and you control both the ceiling and the floor. How much you want to grow (or not grow) your business is up to you.
In fact, some of the happiest franchise owners are not necessarily their brand's top performers in terms of revenue. Sounds counterintuitive, right?
But think of it this way: Those owners are controlling the amount of time that they want to work, and they are making an amount of money that they are comfortable with. They have reached their goals — and nobody is pressuring them to step up their game. That is not a privilege that anyone has in the corporate world.
On the flip side, let's talk about growth. Hard work and dedication to your business are going to help you become profitable with your initial single unit. But that is far from the limit in terms of how you can expand and grow.
For instance, you can have multiple units — whether you own a retail or non-retail franchise. In some systems, you can introduce additional products and services to a brand. You could expand from a single unit to two units or three. Some owners even purchase a whole city, state or region.
Want to go crazy? You can own franchises in multiple brands and continue to grow that way — in the franchising world, we call these people "empire-builders."
The possibilities are endless, and YOU are the one who gets to decide what is right for you. When it comes to income, you are in control.
5. Control your day-to-day life
The right franchise for you to own will be one that allows your unique skill set to shine. It will make you excited to get out of bed in the morning and engage in a day-to-day routine that you find rewarding and engaging.
Ask yourself this question: How much control did you have over your schedule today? Most people say "some control" or "a little bit of control." But what if you could have complete control? What if your time, freedom, and flexibility were up to YOU?
Life is too short to relinquish these things to others. The money will come, and it is part of the equation of control in franchise ownership — but it is simply not the top driver. It is not the primary reason people become franchise owners. It all boils down to control.
Let me reassure you, though: In almost every case, franchise owners see earnings that are higher than when they worked for someone else. Nearly all of America's top 1% of earners are employers, not employees.
So yes, owning a franchise is a great way to make money. But more importantly, it is an excellent way to regain some of the control that you are probably missing in your life.
Take the steps to regain control today
If you have taken the time to read this article, I think it is safe to say that your interest in franchise ownership has been piqued. So what is the next step?
It is time to start learning more about the different brands out there and finding the one that is the right fit for you. That is where my company, FranCoach, comes into play. We work with clients just like you, helping them find the right franchise brand to own and educating them about the benefits and challenges of franchise ownership. And the best part? There is never any fee for our services
There are thousands of franchise opportunities out there, so working with a franchise coach can help you gain a better understanding of what is available and what is right for you. Reaching out is the first step — and gaining back control of your life will follow.
