There’s an interesting article in The Wall Street Journal today, “When the Folks Give You the Business“, discussing how many parents, amid the current economic situation, are purchasing businesses (mostly franchises) for their graduating children.
“And in this era of renewed interest in entrepreneurship, some parents I interviewed described it as a way of recapturing for their children a stake in ‘the American dream’ — the opportunity to control their destiny and have a chance at gaining wealth.” (Sue Shellenbarger)
Jan Walther states “I guess I bought her a job,” referring to the Pita Pit restaurant franchise that he purchased for his daughter after she graduated from college. The interest in investing time and money into yourself and your own business has become a leading first step in the process of investing in a franchise, not just among parents and newly graduated children, but also among the underemployed and recently downsized. Hefty severance and early retirement packages — coupled with the desire to continue working and take charge of their own future — have made investing in a business a more feasible alternative to retirement or unemployment.
Though there is no proof of purchasing a franchise being more successful than starting an independent business, many parents “choose franchises for their kids because they seem to offer marketing, branding and management support” making them feel even more confident in their investment decision.
According to the article, Dave Hughes’ son, Nolen, has operated a College Hunks Hauling Junk franchise for approximately a year and has already broke even. Marvin Himel bought his son, Drew, a WSI franchise and in approximately 3 years Drew’s hired two employees and continues to grow his company.
With a slow return on jobs and uncertainty among employers, buying a career has become a great option for many, and potentially an investment in getting your kids out of the house!