How many of us dream of retirement?
We work most of our lives to hopefully retire with enough savings to enjoy our sunset years.
However, statistics from a study about retirement in America
by the Economic Policy Institute (EPI) paint a more realistic picture.
The report states that "Nearly half of all working-age families have zero retirement account savings," and "Even families with retirement savings have inadequate savings in these accounts."
The last statistic includes Individual Retirement Arrangements (IRAs) and 401(k) retirement savings that supplement Social Security income.
As much as we try, it can be hard to save money when you're trying to keep up with the costs of living.
The good news is that becoming a franchise owner may supplement your retirement income and can also be a way to spend your time doing something you love.
How Can You Retire With a Franchise?
Yes, you can, and it's way easier than starting a new business from scratch. With a franchise, you're buying an established business that already has brand recognition and established operating procedures, their products and services have already been figured out, etc.
Owning a franchise is a great way to take control of your future and help you save enough money for retirement.
This means you are more likely to start making profits faster than you would be building a business from the ground up. It's never too late to become your own boss with a franchise and enjoy the lifestyle that you always wanted to have.
And, if that lifestyle involves working on something you love, you can find a franchise in an industry that aligns with that.
Here are two approaches to franchising that you can take based on how much you want to be involved in the day-to-day operations.
These two approaches also address both types of retirees: Those who need to supplement their retirement and those who have enough money saved but want to get back to work.
A Hands-On Approach to Franchising
The American Association of Retired Persons (AARP) says that people return to work after retirement to "stay engaged in the world." If you can't stand being around the house all day with nothing to do, then becoming a franchise owner may be the right move for you.
Franchise owners, as opposed to franchise investors
, will be in the business daily, running day-to-day operations. In fact, many people refer to this as "buying yourself a guaranteed job."
However, it helps buy a franchise in an industry that relates to something you are passionate about. Since you will be working after retirement, you want to enjoy it.
To do this, think about your skill sets and hobbies, and look for a franchise opportunity where those skills and interests can shine. For example, if you are good with numbers and love the finance world, you might want to consider buying a financial franchise
Or, if you are good with pets, maybe a pet services franchise
would be the right fit for you. You get the idea.
The great thing about franchising is that the franchisor has already figured out the minor and major details of setting up the business. All you have to do is make sure your business runs smoothly.
Remember the saying, "If you want something right, you better do it yourself." Well, as a franchise owner, you will be able to set goals for your franchise
and work with your employees to reach them.
You will have a central role in your franchise's success because you will be there every step of the way.
Ultimately, it's up to you to decide how much you want to be involved. There are so many franchise opportunities available that we are sure you can find one that fits your lifestyle.
The hands-on approach is ideal for retirees looking to supplement their retirement savings and want to make sure their franchise is successful.
This brings us to our next approach to franchising. It's one way of having a franchise without being physically involved and working.
Approach Franchising as an Investor
As a franchise investor, all you have to do is put a staff in place and oversee operations. This kind of approach to franchising will leave you plenty of time to sit back and enjoy your retirement while you earn a steady source of income.
Or, with all your free time, you could look into other franchise opportunities and get more than one stream of revenues. That way, you will be able to grow your savings account faster.
However, keep in mind that to become a franchise investor, it's best to have some money in the bank already that you're willing to put down as an investment.
The key to this approach is to carefully evaluate each franchise opportunity to choose one that's likely to make the most return on your investment. And, if you want to buy several franchises, we recommend you check out our list of cheapest franchises to buy in 2022
Whichever approach you choose, remember that, like all business ventures, franchises have some degree of risk.
That's why you always need to do your research and practice due diligence on how to find out if the franchise you are looking into has the potential to be successful
Make sure you conduct primary and secondary research, evaluate your competitors, and talk to franchisees to know if their business is doing good. All this will help you get a clear idea of a franchise's success potential.
And remember that it always helps to have franchise advisors
, franchise consultants
, and franchise lawyers
by your side. They will help you understand the technical and legal aspects of the franchise you wish to buy.
We know it sounds amazing, and if you have enough savings, you are probably ready to jump to the end of this blog to start looking for your perfect franchise.
If you don't have enough money saved, don't worry. We got your back. Here's how you can afford to own a franchise.
Fund Your Franchise Using Your Retirement Account
If you have an existing 401(k) retirement account, there are two ways to take advantage of it. The first, of course, is to borrow from it.
There are rules about how much you can borrow. You'll have to set up a regular repayment plan like with any loan, but it's pretty easy to do. Your retirement plan administrator/provider can help you with this.
The good news is that you can get your hands on this money without paying taxes.
There's another method that requires a bit more thought, but it's a great way to fund your franchise opportunity. It's called ROBS, and it stands for "Rollovers as Business Startups
The ROBS approach doesn't have repayment requirements and the small limits associated with the 401(k) loan. It can also be used with an IRA account.
With this approach, you will need to set up a C corporation, which is a company that can be taxed separately from its owners or shareholders.
Then, you need to open a new 401(k) plan with your new corporation, which allows you to purchase private stocks.
What you need to do now is transfer the funds from your existing retirement account to that new 401(k) plan. After you do that, you can purchase stocks within your corporation using the 401(k)-account mentioned above, resulting in a cash-rich entity.
It's always a good idea to consult with franchise financial
experts before you start tapping into your current retirement plan to set up new avenues and sources of income.
Owning a franchise, or even several, can be a great way to build a much more solid retirement plan, but always use caution when you tap into 401(k) plans.
Now, what you have been waiting forů
Where can you find those outstanding franchise opportunities to supplement your retirement?
All USA Franchises Is the Perfect Place To Start
At All USA Franchises, we are on a mission to list all 3000 plus franchise opportunities in the U.S., making us the most complete franchise directory you will find anywhere.
Best of all, we are completely FREE. We make it easy for you to find just the right franchise you're looking for.
You can start your franchise search
Search by industry or by investment and narrow down your choices to the franchises that meet your exact criteria.
Don't forget to visit our social media profiles, where we are always keeping you up to date with the newest franchise opportunities. There's no better way to stay on top of what's new in the industry and discover the best franchise opportunities available.
Additionally, All USA Franchises provides you with an informative franchise blog full
of helpful articles and tips for franchisees as well as the latest franchise news. We also provide the latest information about the franchise events you won't want to miss.
And if you need further assistance, we can help you locate franchise brokers
, franchise developers
, and franchise training
These resources will save you time and can provide you with additional franchise help when you need it.
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