Taking the Leap: Is it Worthwhile to Leave a Corporate Job to Become a Franchisee?

As someone who was once on the corporate ladder, I understand the desire to break free and start your own business. You have often daydreamed about being your own boss, making your own decisions, and reaping the benefits of your hard work. Franchising offers a way to make that dream a reality. But is it worthwhile to leave a stable corporate job to become a franchisee? In this blog post, I’ll take you through some of the key factors that you need to consider before making the leap.

Financial Considerations

One of the first things to consider before leaving your corporate job is your finances. Franchising requires an investment, and you need to be sure that you have sufficient capital to set up your franchise business. Look at your current financial situation and determine how much you can afford to invest in the franchise. Be sure to factor in costs such as rent, inventory, staff, and royalties to the franchisor. While you might be able to secure financing, don’t put yourself in a situation where you’re up to your neck in debt. Be pragmatic and realistic with your expectations.

Risk Assessment

Starting a franchise is a risk – no two ways about it. You’re investing your time, energy, and resources into something that may, or may not, succeed. Before making the leap, make a thorough risk assessment for the franchise venture in question. Do your research, including competitor and market analyses. Look at whether or not the franchise model is well-suited to the Australian market, with consideration for consumer trends and preferences. If you uncover issues or the franchisor is vague about support, that’s a red flag letting you know that it’s not a good franchise opportunity for you.

Lifestyle change

Leaving a corporate job and becoming a franchisee means you’ll be your own boss, but it also means that the buck stops with you. You’ll have to shoulder the responsibility of making business decisions, setting goals, and driving business growth. It can also often involve long hours, with late-night closeouts and early morning prep for the upcoming day. So before taking the plunge, assess whether you’re ready for the lifestyle shift that comes with franchise ownership.

Career Growth

Leaving a corporate job and starting a franchise business might mean that you have to say goodbye to the stability that comes with a monthly pay check and employee benefits. However, it also means that you’re in charge of your own career path, to choose which projects to take up for your growth. Franchisees who start out small can grow to become multi-unit owners if they work hard and make the right choices. Before taking the leap, analyse if the brand and franchisor’s level of support can aid career growth and potential business expansion.

Exit Strategy

Franchising agreements often come with a term-length agreement. Understanding the length of your contract and withdrawal policy beforehand provides you with the opportunity to leave should you ever need to do so. It is not uncommon for franchisees to develop franchise opportunity fatigue after investing years’ worth of hard work and dedication. Understand what options are available to sell your franchise business or pass it down within your family, or just return it back to the franchisor.

Conclusion

Leaving a stable corporate job to become a franchisee in Australia has its rewards, but it also comes with its fair share of Making the Leap: Is it Worthwhile to Leave a Corporate Job to Become a Franchisee challenges and risks. Before making the leap, ensure you plan appropriately by analysing your finances, making a thorough risk assessment, shifting your lifestyle to the grind of business ownership, identifying opportunities for growth, and having an exit strategy in place. Franchising is a path to financial freedom and controlling your own future, provided you are willing to put in the effort to get there.

For more information join our BFF Business Accelerator 12-week course, combining pre-recorded modules, interactive tasks, Network Masterminds, and optional 1-1 office hours, which is designed for soon to be & existing franchisees looking to get on the path to profitability.

About the Author

Ozzie Djemal from Bulletproof Franchising has lived through all of the pain points throughout his extensive 30-year career in Hospitality. Creating Milk Bar Style Takeaway shops, Turkish restaurants, setting up and operating a Franchise Model and Franchising numerous other businesses in the hospitality industry.

This firsthand knowledge coupled with 25 years’ experience in senior roles within the corporate environment, as well as completion of an Executive MBA with UNSW Business School & over 200 other courses – has equipped him with the skills, experience, and knowledge to implement real growth strategies for your Franchise Business.