Baby Boomers Evaluating Franchises: No Second Chances
June 11, 2008 by Jean Murray
In the same way as any kind of investment, do your homework. As I posted yesterday, if the franchisees of Cork and Olive had checked public records in Florida, they would have found out that Michael Probst had a judgment against him for over $800,000. That alone would have scared me off.
In addition, every franchise is required to submit a Franchise Disclosure Document, according to FTC guidelines. Sean Kelly also has information on selection criteria to use when evaluating a franchise.
For baby boomers, choosing a franchise is even trickier, because we don’t get any second chances. Spending your retirement savings on a franchise means you can’t afford to try again.
Don’t forget my “50 things to do at 50-something” contest - comment and put yourself in the running for a $30 book gift certificate. Final comments must be posted by June 20.
No Second Chances for Baby Boomers is right. So, in their evaluation of ventures, they should consider:
1 investment required should be only what they can afford to lose
2 the venture should have a relatively short gestation period
3 before taking on a venture, they should consult successors-in-interest (e.g., beneficiaries, heirs, partners) if the venture is something they would pursue, in case . . .