Starting your own business is a daunting prospect in the best of times, but the recession is making even the most independent-minded souls think twice about leaving the safety of full-time employment.
”Franchising for Women and Minorities,” a satellite video conference originating from the Marriott Hotel, 540 N. Michigan Ave., on June 15, offers an alternative to going it alone.
The conference, to be broadcast at university campuses nationwide will examine the pros and cons of franchising and feature addresses by Wally Amos, founder of Famous Amos Cookies, and Jenny Craig, owner and founder of Jenny Craig International, the weight-loss center chain.
Susan Kezios, founder of Chicago-based Women in Franchising, Inc., the for-profit association presenting the conference, says the instability of the economy has prompted some people to consider buying franchises.
”They are losing their jobs and they have no choice,” she says. ”It`s a crisis that happens and someone is forced to take action.” Kezios says she often gets inquiries from laid-off executives who say they want more control over their own employment.
Franchising offers a compromise, a way of being your own boss with the groundwork for the business already in place, says Amos.
Because most franchisers don`t market to women, it`s not an option they often consider, says Kezios. She reports that in 1987, 10.9 percent of franchises were owned by women. By 1990, the number had reached 11.1 percent, which Kezios describes as ”treading water.”
Franchising suits the needs and abilities of women, says Kezios. For women and minorities in particular, it can be a way to shatter the ”glass ceiling” that limits their rise in some corporations.
Among the down sides to franchise ownership: the initial financial investment; a portion of the profits must be returned to the licenser; and the possibility of failure.
Kezios notes there are lower-priced franchises; some that are home-based, such as dance-exercise franchises, require as little as $2,500 to start.
But the average retail franchise, such as ice cream and frozen yogurt shops or health-product stores, costs $150,000, she adds. High-end franchises cost up to $200,000.
Virginia Ojeda, a conference speaker who, with her husband, became the first native Hispanic Chicagoans to buy a McDonald`s franchise 10 years ago, saya some organizations also offer leasing programs that involve smaller initial investments and taking loans from the franchisers for the remaining amounts.
Jenny Craig ranks commitment to hard work as the important first step franchisees must take. ”You have to be passionate about (the business),” she says. ”You have to want it so bad you can taste it.”
Craig says it is important to have a strong market for a franchise`s product or services and to know what kind of support will be provided by the corporation. She said her company, which has 600 outlets worldwide (20 percent of which are franchises), provides training programs and national advertising. All the experts agree that individuals should do plenty of research. Find out which franchisers have the best track record and give the most support to their franchisees. Kezios suggests reading books and trade publications, talking to people in the business, including lawyers who specialize in franchise law, and attending trade shows and conferences.
Kezios says the range of franchises is ever-expanding, from floor covering stores and resume-writing services to gourmet coffee shops and beauty salons.
Attorney Christine Tani, a scheduled speaker who worked in the industry during its explosive infancy in the `70s, predicts a growing number of opportunities, especially in health care.
The uncertain economic times inspire optimism in Ojeda, also. ”So many people are being laid off from their positions. They`re looking to build their own destinies. I think it`s a good sign for our economy.”
LIFELINES
For conference information
Women in Franchising, Inc. promotes the advancement of women entrepreneurs. For details about the Franchising for Women & Minorities conference, call 800-222-4943.
To join
The International Franchise Association is the industry`s 36-year-old trade organization. For information and a listing of members, call 202-628-8000.
Legal resource
The American Bar Association`s Forum Committee on Franchis-ing lists attorneys who practice franchise law: 312-988-5000.
Entrepreneur advice
The Women`s Business Development Center offers training programs for entrepreneurs. Call 312-853-3477.
Franchise directories
”The Sourcebook of Franchise Opportunities” (Dow Jones-Irwin, $29.95)and
”Franchise Handbook” (a quarterly publication available for $4.95 at magazine stands and bookstores). Related reading: ”Franchising for Free”
(John Wiley & Sons, $12.95); ”The 50 Best Low-Investment, High-Profit Franchises”(Prentice-Hall, $12.95).
