Older Workers Starting New Careers Buying Franchises
Kathy McAvoy-Rogalski keeps her year-old business operating on a short leash, and that’s a good thing.
Operating a Fetch Pet Care franchise with her husband, James, out of their home has proven to be a rewarding second career for the early retiree.
“It’s the one job where I can honestly say your clients are always happy to see you,” said the 56-year-old Yonkers, N.Y., woman.
Thousands of older Americans with an entrepreneurial bent have started new careers in recent years by buying small franchises in enterprises ranging from beauty shops to home maintenance to tax preparation. The option is likely to draw more interest as baby boomers age and, in the bleak economy, get laid off.
Franchising offers the chance for additional income and a new direction for people in the later stages of their working careers who either don’t want to retire or can’t afford to. Boosted by a brand name, training, advertising and an established business plan, a franchise can ease the struggle and risk of opening a business and still let you call some shots.
Hefty startup costs, which may range from $20,000 to $150,000 to buy part-time or smaller franchises, don’t guarantee a profit. There also are royalties, licensing requirements, long-term commitments and the franchise company’s ultimate control to consider. Three-quarters of all new franchising companies go under within the first 10 years, according to Scott Shane, professor of entrepreneurial studies at Case Western Reserve University.
That makes it critical for individuals to do careful research and look at any buying opportunity skeptically.
Photo by Fetch Pet Care.
Jaclyn on February 11th, 2009 7:55 am
I’ve heard about alot of these situations going on for year’s now. people want to eventually retire from their long time full time job, but at the same time they still want a little extra padding in their checking account as well as something to do. think about it, they’ve been working all their life and now they are retired…it must be hard making the transition from working everyday to having nothing to do everyday…i can see why some would start a small business after retirement…i think it’s more of a hobby situation for them.
cassy on February 12th, 2009 3:36 am
thats good idea for the the older people,even if they are old they still think of having some extra income by buying franchise and start a life of being a old entrepreneur,for me its great idea for them,coz it maybe make them happy to still be active even if a entrepreneur, iguess they are just using their time and money in a good way and to make it a good furtune bye investing it in buying a franchise, to all the older entrepreneur good luck and more success in the business!
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