I was thinking about quitting my job as a software engineer and putting 20% down on an existing franchise, like a Jimmy Johns or
Hi Isaac,Let’s break down your question.First getting tired of 9–5 is normal, at some point, unless you have no care for improvement, you start to wonder if you are really worth what they pay you, or if what they pay you is worth the kind of job. It happened to me 10 years ago, went on my own, and never looked back.Now, transition to business is not an easy one. When you have a job, specially a job like yours, you have a very specific scope, with very specific projects and outcomes. When you start working for yourself, you need to get a grasp on everything, quick. My question to you would be, how familiar with other areas of a company are you? Do you know how to read a financial statement? Do you know about marketing or HR? All of this can be learned, but trying to run a business and learn about it at the same time, is risky.I have extensive experience on franchises, including having worked for McDonald’s, from the most menial tasks in a store, to run the finances of 4 countries. Restaurants are hard, franchises are harder. I also got approved for Checkers and 7-Eleven and backed out on the signature page of the contract. At the end is a lot of work for not a lot of reward.Everything is fun and games until you sign that franchising agreement, which you didn’t read entirely, because who really has the time?Ask yourself this: why would someone want to sell a good ongoing business if its profitable? Why not bring a partner on board and keep profiting while semi-retired from the front lines? That’s what I don’t like about buying from franchisees leaving the system. Why do they leave? Are they leaving because business is no so good? Why would I want to buy that? Are they leaving because business is good but they couldn’t make it? What kind of mess am I buying? The circle doesn’t complete for me when these situations happen.As being part of more than 66 franchisee to franchisor store sales, not 1 out of 66, was a good business.Franchisors have a tendency to SAY they’ll work with you and bear with you, not to put it in writing, and after you sign that agreement, you are bound to duties you have to honor, and each one you don’t will cost you money.In my experience, running a franchise is the same as having a 9–5, with a little more profit. Unless you grow to 5–6 locations, you are self-employed, not a business man.All that said, I do believe there are always ways to become independent. You work with software, you have a tool on your hands that most people don’t, and you have the gift of infinite escalability which brick and mortar doesn’t. Why aren’t you considering that?My suggestion to you would be to try to work independently and learn about business before jumping into the “invest your money here” type of business, before going into restaurants, and specially before going into franchises.If what I said still doesn’t make you think twice, I suggest you take a look at UBreakIFix or similar franchises. They’re small, which gives you a better relationship with corporate, investment is not huge, as a restaurant is, they’re tech-related and I don’t see a shortage of gadgets to repair in the future, but I do can see people not wanting to eat Chicken BBQ Melt.Let me know if you wish to discuss in more detail, I’ll gladly do a Skype with you.
