Job security is not guaranteed in today’s economy. While losing a job can be stressful and disruptive, a layoff can also create an opportunity to reconsider your career path and explore a different approach to earning a living.
Unfortunately, job security is not guaranteed in today’s economy. According to the U.S. Bureau of Labor Statistics, employers reported approximately 1.7 million layoffs and discharges in May 2026 alone, representing a 1.1% layoffs and discharges rate for the month.
While layoffs are a normal part of the labor market, losing a job can still have significant financial and professional consequences. For many people, the immediate response is to search for another position. But a job loss can also create an opportunity to reconsider your career path, including whether business ownership and franchising could be the right next step.
What to Do After Being Laid Off
Before deciding what comes next, give yourself some time to evaluate your situation and options.
Review Your Benefits and Entitlements
Before leaving your employer, make sure you understand what you may be entitled to receive. Depending on your circumstances, this could include severance pay, unused paid time off, continued benefits, retirement account options, unemployment benefits, references, or outplacement assistance.
Review your separation documents carefully and ask your employer or HR department any questions you have about your benefits.
Take a Look at Your Finances
A period of unemployment can create financial uncertainty, particularly if you are considering starting a business.
Review your household budget and determine how long you can comfortably manage without your previous income. This is also the time to understand how much capital you could realistically invest in a business without putting your personal finances at unnecessary risk.
Assess Your Next Career Move
You also don’t have to wait until a layoff happens to start exploring your options. If your industry is experiencing restructuring, your company has announced layoffs, or you simply feel uncertain about your long-term career prospects, it may be worth researching your alternatives while you still have a paycheck. Exploring franchise ownership doesn’t mean you’re committing to buy a business. It simply gives you another option to consider before you’re forced to make a career decision under pressure.
Getting laid off can make you feel like you need to find another job as quickly as possible. While finding immediate employment may be necessary, don’t overlook the opportunity to think more broadly about your next step.
Ask yourself:
- Do I want to continue in the same career?
- What did I enjoy/dislike about my previous job?
- What skills could I transfer to another industry?
- Do I want greater flexibility or control over my schedule?
- Have I always wanted to own a business?
- What would I want my next 5-10 years to look like?
A career transition doesn’t have to mean simply replacing one job with another. It can also be an opportunity to pursue entrepreneurship.
Don’t Let a Layoff Force You Into Your Next Decision
Understandably, a layoff can create pressure to replace your income as quickly as possible. However, it’s important to take time to decide what you actually want from your next career instead of rushing into the first job or business opportunity you encounter.
Use the transition period to separate your immediate financial needs from your long-term career goals. You may need to find temporary employment while you explore business ownership, and that’s okay. You don’t have to choose between “get another job immediately” and “buy a franchise immediately.”
Taking time to research your options can help you make a decision based on your skills, finances, lifestyle, and long-term goals rather than simply reacting to the loss of your previous job.
Job Security vs. Income Security: Is There a Difference?
A layoff can change the way you think about career security. Before losing your job, having a stable position with a good salary may have felt like the safest way to protect your financial future. After a layoff, you may begin to question how much control you actually had over that security.
That’s the distinction between job security and income security.
Job security depends largely on the continued existence of your position and your employer’s decision to keep you in it. Even strong performance doesn’t eliminate the possibility of restructuring, downsizing, acquisitions, economic changes, or other circumstances outside your control.
Income security is a broader concept. Rather than depending entirely on one employer, some people look for ways to create additional sources of income or build an asset of their own.
Franchising is one way to explore income security. Instead of relying solely on an employer for your income, you have the opportunity to own and operate a business within an established franchise system.
That doesn’t make franchise ownership risk-free or guarantee income. A franchise requires capital, hard work, and due diligence. But for someone reconsidering their career after a layoff, the idea of building something they own can be an intriguing opportunity.
Could Franchise Ownership Be Your Next Career?
If you’ve considered owning a business, franchising is one option worth exploring.
Starting an independent business requires you to develop virtually everything from the ground up. This includes your brand, operating procedures, marketing strategy, supplier relationships, and customer acquisition process.
A franchise provides an established framework. While franchise ownership still requires significant work, investment, and risk, you aren’t starting with a blank slate.
For the right entrepreneur, this combination of structure and business ownership can make franchising an appealing career transition.
5 Reasons Franchising Might Be Your Next Best Move
#1 – An Established Business Model
One of the biggest differences between buying a franchise and starting a business from scratch is the business model.
A well-established franchise has already developed and refined its products or services, operating procedures, marketing strategies, and customer experience. Franchisees receive a blueprint for operating the business rather than having to develop every system themselves.
However, this doesn’t guarantee success. Your results will still depend on factors such as your management, market, finances, and ability to follow the franchise system.
#2 – Training and Ongoing Support
Franchising can also be attractive to people transitioning from traditional employment because you don’t necessarily need previous experience in the specific industry.
Depending on the franchise, initial training may cover:
- Marketing and brand positioning
- Sales processes
- Technology and business systems
- Customer experience
- Bookkeeping and financial management
- Compliance requirements
- Location selection
- Recruiting and employee management
- Equipment and inventory
- Day-to-day operations
Support may continue after the business opens through:
- Operational guidance
- Marketing assistance
- Business coaching
- Technology and administrative support
- Purchasing resources
- Field support
- Ongoing training
- Franchisee conferences and networking
When evaluating a franchise, however, don’t assume every franchisor provides the same level of support. Talk with existing franchisees to find out whether the support offered actually delivers value.
#3 – Your Existing Skills Can Transfer
Being laid off doesn’t mean the experience you’ve accumulated throughout your career disappears.
In fact, many professional skills can transfer into franchise ownership. Leadership, sales, project management, customer service, financial management, operations, marketing, and relationship-building skills can be valuable across a wide range of franchise concepts.
Before choosing a franchise, carefully consider the day-to-day responsibilities of the business. A franchise may look attractive on paper but still be a poor fit if its daily operations don’t align with your strengths, interests, or preferred working style.
#4 – Potential Financial Benefits
Franchise ownership requires an upfront investment and ongoing expenses, including franchise fees, royalties, advertising fees, equipment, inventory, and working capital.
However, franchisees may also benefit from the purchasing power and shared resources of a larger franchise network. Depending on the system, this can include negotiated supplier relationships, centralized marketing, technology platforms, and other resources.
Some franchisors also work with lenders or offer financing programs to help qualified franchisees fund their businesses.
Before investing, carefully evaluate the total cost of ownership and make sure you have sufficient working capital to support the business during its early stages.
#5 – Greater Autonomy and Growth Potential
Franchise ownership offers a balance between structure and independence.
As a franchisee, you must follow the franchisor’s established standards and operating requirements. At the same time, you are responsible for running your business, managing employees, serving customers, and making day-to-day decisions within the framework of the franchise system.
Depending on the concept, franchisees may also have opportunities to grow through:
- Multi-unit ownership
- Additional territories
- Expanded service offerings
- Conversion opportunities
- Other business development opportunities within the franchise system
For someone leaving a traditional corporate career, this combination of structure, ownership, and potential growth is appealing.
However, not every franchise supports multi-unit or semi-absentee ownership. If building a franchise portfolio is one of your long-term goals, ask the franchisor about its policies for multi-unit development, management structure, territory availability, and expansion.
Don’t Choose a Franchise Simply Because You’re Ready for a Change
A layoff can create a strong desire to regain control quickly. But that doesn’t mean you should rush into business ownership.
Franchising isn’t right for everyone, and the fact that a business is franchised doesn’t automatically make it a good investment.
Before choosing a franchise, evaluate:
- Your available investment capital
- Your working capital reserves
- Your transferable skills
- Your preferred work environment
- The franchise’s business model
- If the franchise has a solid brand
- Market demand
- Competition in your area
- The franchisor’s financial health and track record
- Training and ongoing support
- Feedback from current franchisees
- The terms of the franchise agreement
Take the time to compare multiple franchise opportunities rather than choosing the first concept that catches your attention.
Talk to Existing Franchisees
One of the most valuable parts of franchise research is speaking directly with people who already own the business.
Ask franchisees about:
- Their initial training experience
- The quality of ongoing support
- Their biggest challenges
- How long it took to build the business
- Whether their expectations matched reality
- How responsive the franchisor is
- Whether they feel they receive value for the fees they pay
Don’t only look for positive feedback. A strong due diligence process should give you a realistic understanding of both the advantages and challenges of franchise ownership.
If you’re interested in eventually owning multiple locations, ask franchisees whether they have expanded beyond their initial unit and what was required to do so.
Get Professional Advice Before You Buy
Once you’ve narrowed down your options, don’t make the decision alone.
A franchise attorney can review the franchise agreement and explain your rights, obligations, renewal terms, restrictions, and other contractual requirements.
An accountant or financial professional can also help you evaluate the financial requirements and determine whether the investment makes sense for your situation.
The goal isn’t simply to find a franchise you like. It’s to determine whether the opportunity makes sense for you financially, professionally, and personally.
A Layoff Can Be a Career Transition, Not the End of Your Career
Losing a job can feel like a major setback, particularly when you weren’t expecting it. But it can also provide an opportunity to reconsider what you want from your career.
You may decide that returning to a traditional job is the right choice. Or you may discover that business ownership is the direction you’ve wanted to pursue all along.
The key is finding the right opportunity and taking the time to determine whether franchise ownership is actually a good fit for you.
FranNet Success Stories: From Layoff to Franchise Ownership
A career setback can sometimes become the starting point for something new. FranNet has helped individuals navigate career transitions and explore franchise ownership as an alternative to returning to a traditional job.
Read their stories:
- How a Corporate Layoff Changed My Life – Roxanne Rapske
- Another Entrepreneurial Journey – Meet Crystal Drumgoole
- Another Franchisee Journey – Getting to Know Fady & Ana Chaban
- Another Client Success Story – Meet Blair Paul
These stories offer a firsthand look at how different professionals approached career transitions and explored business ownership through franchising
FranNet Can Help You Explore Your Options
If you’ve recently been laid off and are considering business ownership, you don’t have to navigate the process alone. FranNet franchise consultants help aspiring entrepreneurs understand their franchise options, identify concepts that align with their skills and goals, and navigate the franchise investigation process.
Your next career move could look very different from your last one. Schedule your free consultation with FranNet today to explore whether franchise ownership could be the right next step for you.
