Corporate Exiles Turn To World Of Franchises
Eric Ruth:
For many people, today will be another day at the same old job, the kind of quietly maddening Monday that makes you yearn to be your own boss, in your own business, doing something you love. You’re not alone.
White-collar workers across the state are dropping out and diving into an ever-widening array of franchising opportunities, driven by a climate of downsized staffs, dead-ended ambitions and career burnout. ‘The vast majority of candidates that come through the franchise system and become successful franchisees are the baby boomers,’ said Lori Kiser-Block, vice president of FranChoice, a company that helps guide workers toward franchise opportunities. ‘They’re somehow disenchanted with corporate America.’
In 2001, Delaware had 2,281 franchises – from the Coffee Beanery to Blimpies – employing 29,268 people for a payroll of $786 million, according to the International Franchise Association. ‘There’s no question that in the last 5 to 6 years there’s been a huge uptick’ in former professionals entering a franchise biz, said Nathan Greenberg, general manager for Siegel Capital, a Bala Cynwyd, Pa., company that helps would-be franchise owners capitalize on their dream.
Many in the new generation of franchisees say ownership was a leap worth taking – even those who have yet to land on both feet. They also say it was the scariest thing they’ve ever done: giving up a steady, stable job, investing a life’s savings, all in exchange for countless hours of hard work and uncertain success. ‘In the beginning, I was terrified because it was a huge risk to take for my family,’ said Renee C. Wolhar, a former MBNA vice president who opened a Delaware franchise called V2K Window Décor and More in 2005. ‘I am to the point now that I can’t imagine going back into the corporate world, ever.’
‘It’s a long, hard road’
An economy buffeted by corporate uncertainty is getting a solid boost as the victims of that economy rebound with vigor. Overall, franchises contributed $4.3 billion to Delaware’s economy in 2001. Nationwide, franchises accounted for 7.4% of private-sector jobs in 2001, the franchise association said. In part, the growth is being driven by a system that makes franchise ownership a more affordable and achievable goal. ‘There is something for everybody out there, and for every budget as well,’ said Justin Schakelman, vice president of TheaterXtreme, a Newark-based home theater retailer that is opening franchises across the country.
Many former professionals boast solid retirement plans and sizable home equity, and using that capital can help leverage their business – at the risk of losing it altogether. They escape the secure confines of corporate life for a world full of risks. ‘It is a long, hard road,’ said Bernadette Murphy, who runs a CruiseOne franchise in Newark. She enjoys helping clients find the right cruises, but still struggles to reach the market she envisioned – after 6 years in business, she has yet to see a profit. ‘You have to be willing to put in the long hours,’ she said. ‘I always have to be prepared to take my work with me wherever I go.’ They now know they also have to be prepared for stress and worry, day after day.
Rick Katz, a former advertising account executive, has been spending months working toward the July 29 opening of his Super Suppers franchise in Churchmans Crossing. ‘Right now, I’m in free fall and I’m not sure if the parachute’s going to open,’ he said. ‘I’m petrified.’ Read the Goodbye to corporate doldrums.
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