Gary Prenevost
This article was originally published in the Fall 2024 issue of ICON/REFINED Mag. Get your copy here.
Written by Gary Prenevost
One of North America’s leading franchise search coaches, he is a multi-unit franchisee and the award-winning author of The Unstoppable Franchisee, 7 Drivers of Next-Level Growth. Gary and his team have guided over 2,000 people through the full scope of their franchise research.
Why is the dream of self-employment so prevalent? With the decline of long-term careers with a single company in North America, most people face a new job hunt every three to five years (or less). This start-stop cycle creates challenges such as recurring periods of unemployment, unpredictable career advancement and compensation, longer times to accumulate wealth, and a lower sense of accomplishment and self-worth.
Self-employment can be a solution to these challenges. When done right, it offers greater work-life integration, more operational control, and compensation directly tied to effort—without a cap on earnings. The more you do and the smarter you do it, the more you earn.
It’s no wonder that countless surveys show over two-thirds of North Americans would prefer owning a business to having a corporate job. Yet, fewer than 10 percent of Americans and five percent of Canadians actually take the plunge into self-employment. Let’s face it—self-employment is risky, but buying a franchise can help mitigate that risk.
So, the question becomes: Should you buy a franchise? Operation freedom, profit, control, and other benefits depend on how well the business is run. You can buy a great franchise with a strong brand and proven success, but if you don’t operate it as prescribed by the franchisor, you might not achieve the success others have.
But I believe “Should you buy a franchise?” is the wrong question. The better question is: “Should I explore franchise ownership?”
With over 4,000 franchise concepts in the US and 1,000 in Canada, there’s a strong likelihood that several franchise models would suit you well. But how can you find the best fit? Searching online for “best franchises” will yield many options, but researching each one takes considerable time—at least 40 hours per brand, plus reflection time to truly understand how to run the business. It’s exciting to learn about these businesses, but it’s all wasted if the critical roles aren’t aligned with your skills or interests.
A better approach saves you time: Ask yourself, “What types of franchises am I best suited to run?” To narrow down your options, start with self-reflection before diving into franchise lists (see sidebar “Your Franchise, Your Self”).
Your Franchise, Your Self
Consider these three primary resources every business needs from its owner, whether a franchise or otherwise:
- Capital:
- How much money does the business need to launch, open, and break even?
- How much of your own funds are you prepared to risk?
- How comfortable are you with borrowing money?
- Time:
- How much time does the business require from the owner?
- How many hours per week can you dedicate to the business?
- What is your time availability (daytime only, evenings/weekends, or full-time)?
- Transferable Skills:
- What are your skill superpowers?
- What types of work are you good at and enjoy, and want to continue doing?
- What skills do you want to develop further?
- What types of work do you dislike or have outgrown and do not want in your new business?
Transferable skills are crucial because most new franchisees don’t have direct industry experience. They need to apply their existing skills to a new business sector. After reflecting on your resources, get clear on your financial and lifestyle goals and the critical criteria you need (e.g., customer type, staff size, location, hours). I advise clients to consider 10 to 14 different criteria and assess short-term, mid-term, and long-term goals.
Once you have these elements figured out, you can start your search. Use your reflections to quickly disqualify options that don’t align with your resources, goals, and criteria, focusing only on those that match well. In boxing terms, this is “punching within your weight class.”
And some final thoughts to consider: If you’re a first-time homebuyer, you wouldn’t buy a home without an experienced real estate agent. Similarly, if you’re new to franchising, seeking professional guidance is crucial. There are many franchise brokers who offer their services at no cost to you, as they are paid by the franchisor upon successful matches. Choose someone with the expertise to guide your search effectively.
If you have the resources, tenacity, and grit to run a business, then yes, you should explore franchise ownership and determine whether there’s a strong franchise model for you to buy.