Fight Recession For Yourself And Others With A Management Franchise Business

Posted on October 23, 2008 by Ginger Watford

Many people make the mistaken assumption that buying a small business franchise means signing your life away to doing the same mundane tasks, day in and day out. Some franchises work that way, but businesses like that are clearly marked as such, and only those who want a franchise that puts them in continual hands-on-contact with the work purchase such businesses. The average franchise business, however, is not looking for an owner/operator, but a manager who will take the business model and work within its structures to grow the business, while letting others do the day-to-day, hands-on work that the customer receives.

Interestingly, this kind of operation, commonly called a management franchise, is an amazing opportunity for business success, local job-market expansion, and economic stimulation, even in the face of recession. Why? In simple terms, taking advantage of a management franchise opportunity in a solid market establishes a trustworthy source of income for the franchisee and others, which ultimately helps the economy.

Personal Income
Of course, the most obvious benefit of starting a franchise is the earning potential for the owner, and with management franchises, the earning potential is definitely there, because instead of being restricted to an income that he can produce with his own two hands, the franchisee makes profit off what’s made by an entire staff. What’s more, because a franchise comes with a fully developed business model that has already proven successful in a number of different places and circumstances, there’s a good deal more security in opening a franchise than there is in starting a small business from scratch, particularly in a dwindling economy.

Some franchises have been around so long that their business plan can be considered effectually flawless, and they’ve established themselves enough in the market that recession would have to be become full-on depression to have any significant impact. This has historically been the case for fast food establishments like Kentucky Fried Chicken and Arby’s. With long-time business plans that have been tested from coast to coast, and marketing schemes that are recognized the world over, there has not yet been any real threat that economic shifts have posed to such companies. Recession or not, the fast food industry manages to stay ahead in the United States.

Even if a franchise operation doesn’t yet have the fully developed track record that instills instant faith, some management franchises are built on industries that many professionals consider recession-proof. Car repair and home repair are two that are often mentioned as being resistant to the effects of recession. Because the car and the home are two of the biggest investments that people make, keeping those investments in good shape is something that all home and car owners are willing to pay for in all economic climates. For this reason, choosing to purchase an automotive business like Techna Glass, one of the most trusted names in auto glass repair, or AAMCO, the largest transmission franchise in the United States, is a brilliant plan. Or for the franchisee skilled in home repair, Mr. Handyman is ranked by Entrepreneur Magazine as the #1 handyman franchise in the US. And as it turns out, even home inspection businesses, like the home based business National Property Inspections, survive well in recession, because particularly when the housing market is declining, sellers and buyers both become far more concerned with the quality of the home, thereby warranting multiple inspections.

Choosing to start a business during a recession may seem like a dicey maneuver, but it really isn’t the extreme risk it appears to be, especially if the business in question is a franchise. And in fact, opting for a franchise business is not only a safer bet than starting an independent operation; it’s often a safe bet, and one that has benefits for more than simply the business owner.

Community and National Effects
According to economists, one of the primary causes of economic recession is unemployment. In the United States, 99% of all businesses are small businesses (meaning that they have fewer than 500 employees, and most actually have less than 20), and those businesses employ over half of the nation’s working population. With investors becoming less and less willing to provide loans to small businesses, as opposed to larger corporations that have vast amounts of capital and credit to work with, small business owners are having to let employees go in order to cut costs, which is only deepening the recession problems locally and nationally, as unemployment continues to rise in both.

Franchisees who are willing to invest themselves and their money in franchised, management business opportunities are using tried and true businesses and operation models to provide jobs. Local individuals and families employed by new franchise owners benefit once more from a steady paycheck, then the money that they have earned and then must spend begins to find its way into circulation throughout the local economy. Because of the management franchisee’s business endeavor, individual people are benefited with an income again, and small communities see bits of economic growth.

Ultimately, as small businesses profit their owners and incite these simple kinds of changes in their local areas, the nation must follow suit as well. If unemployment is a catalyst to recession, employment must therefore be its antidote, so the more small business franchises that crop up, hiring employees along the way, the better state the whole nation will finally be in.