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Today’s population over the age of 50 is reluctant to be “put out to pasture”. Many people over the retiring age dream of owning a business when they leave the traditional workforce. And there is no reason that older people driven by the entrepreneurial spirit cannot achieve their dream.
From Retired to Franchise Owner
Those that buy into the "Rocking Chair Myth" believe that we become inactive and less productive as we age, but entrepreneurial retirees are putting that myth to bed. Franchising may be just what you need to fan the flames of passion after retiring, giving you financial freedom and a chance to build a business you're proud of.
Colonel Harland Sanders is an outstanding example. He was 62 years old when he sold the first Kentucky Fried Chicken franchise in 1952. Twelve years later, KFC was a popular fast food restaurant with locations throughout the United States.
Consider these statistics gathered from a study by the American Association of Retired People:
- The percentage rate of self-employed people rises with age.
- Those who are middle-aged and older make up a large share of all self-employed people, with those over 50 accounting for 40% of the demographic.
- Approximately one in three older self-employed individuals made the transition from employee to business owner after the age of 50.
- People older than 55 are the fastest growing group of self-employed workers.
Franchise ownership is an excellent option for retirees. CNN Money compiled a list of the best-paying retirement jobs, and they ranked franchise ownership at 18 based on market demand, scheduling flexibility, and other preferences expressed by this age group.
For retirees, there are many advantages of buying a franchise:
- A franchise is a proven commodity with proven systems in place – it’s easier than starting a new business from scratch.
- Franchise owners receive comprehensive operational support.
- In-depth training is provided by the franchisor.
- The franchisee doesn't have to go it alone with advertising and marketing support.
- A franchise comes with brand name recognition and ready-made customers.
- Retirees can have peace of mind knowing that franchisees enjoy a high success rate, and that their individual business is backed by a successful brand name company.
Franchise companies are recognizing that older, experienced workers retiring from regular jobs are good candidates for franchise ownership. Retired people have confidence from the wisdom gained over years in the workforce. They know how to plan ahead and reliably carry through to reach goals. And their experience has refined and sharpened their interpersonal skills.
But before rushing into franchise ownership, retirees must carefully consider just what it is they want do in this next phase of their lives. Quality of life should be the first priority, and factors such as time commitment and physical endurance must be carefully weighed. The financial aspect is another major influence – as one approaches retirement age, it is unwise to “bet the farm” on any one investment. Retirees may be better off looking for franchises with lower up-front costs and minimal ongoing overhead.