“For some, the idea of becoming a business owner may seem overwhelming and complex but, rest assured, it doesn’t have to be…An entrepreneur can be a retired nurse who now teaches CPR to supplement her income…a former mill worker who opens a small engine repair shop in his garage…a former marketing executive teaching adult education classes for struggling business owners…You just have to be open to the idea of finding an activity you like doing that can also put extra money in your pocket. Embracing this life-changing definition of entrepreneurship can open the door of possibilities to anyone heading toward retirement, and it starts with discovering your passion.” Robert Laura, RCA
The Retirement Coaches Association (RCA) is a diverse group of experts including certified coaches, financial professionals, and PHDs. FranNet enjoys a longstanding collaboration with the RCA as they modernize retirement concepts and provide sophisticated growth opportunities for their members.
Fewer and fewer people are “truly” retiring these days, and this seems to be the trajectory of the future. In fact, “one in five Americans believe they will never retire” (Axios/Ipsos). While someone of retirement age might be able to continue working their 9-5 job, there are good reasons why a retiree should pursue franchising. Not only is franchising a great way for retirees to continue earning an income, but it also offers a flexible lifestyle and the opportunity for retirees to continue building relationships and engaging with the community.
However, it’s important for retirees to carefully research and seek advice to ensure they select a franchise that’s right for them. There are some franchises that tend to fit retirees’ skills and lifestyle more than others.
Why Consider Franchising After 50?
For many professionals over the age of 50, franchising isn’t about retirement at all. It can be a way to pursue a new career while gaining greater control over how they work and what they do next.
After decades in the workforce, some professionals are ready to move away from the traditional corporate environment. They may want:
- More control over their career and future
- Greater flexibility in their schedule
- Less work-related travel
- An way to use the skills and experience they’ve developed throughout their careers
- The ability to pursue work that better aligns with their interests and lifestyle
Experience can also be a significant advantage when transitioning into franchise ownership. Professionals who have spent years developing skills in sales, management, finance, operations, marketing, or customer service can often transfer that experience into a franchise business.
Additional Reading: Top 25 Family Business Ideas to Start Together
5 Best Franchise Types For Retirees
“While retirees will inevitably develop some new skills in the process of starting a business, they won’t have to jump headfirst into a cold, unmarked pool. They can wade into a section where they can touch, getting comfortable while keeping their head above water.” Robert Laura, RCA
#1 – Consulting and Coaching Services
Retirees generally have years of experience in their respective fields, and their expertise will likely cover a wide variety of topics. Pursuing a franchise that offers consulting and coaching services is a great way for retirees to share their knowledge, mentor others, and earn a lucrative income all at the same time. An added benefit is that these types of franchises offer flexibility and autonomy to their franchisees. Not only can a retiree continue earning income, but they can set their own schedule and work from anywhere – the best of both worlds!
Examples of this type of franchise include:
- Business coaching
- Financial consulting
- Career counseling
- Life coaching
#2 – Education and Tutoring Franchises
Similar to consulting and coaching, franchises focused on education and tutoring are a great way for retirees to pass valuable skills and knowledge on to others. Not only can a retiree earn a steady income doing this, but it’s an opportunity to make a difference in the lives of students. These types of franchises also offer flexible schedules and can be tailored to fit retirees’ areas of expertise and interest.
Examples of this type of franchise include:
- Tutoring services (e.g., math, language, music)
- STEM education programs
- Adult education and training centers
#3 – Travel Agency Franchises
One of the biggest perks to retirement is having the time to travel and explore the world. A travel agency franchise gives retirees the opportunity to share this passion for travel with others while still earning an income. This type of franchise can also be operated from home giving retirees the ability to travel and have a flexible lifestyle.
This type of franchise will typically book the following for its customers:
- Flights
- Accommodations
- Cruises
- Car rentals
- Travel insurance
- Other travel-related arrangements
Some franchise travel agencies will specialize in specific types of travel, such as leisure travel, corporate travel, luxury travel, adventure travel, destination weddings, eco-tourism, and more.
#4 – Home-Based Franchises:
A home-based franchise gives retirees the ability to manage their business from the comfort of their own home. Any business that’s operated from home will generally offer more flexibility than other businesses. It’s an especially good opportunity for retirees that are looking for supplemental income because it can be operated on a part-time basis. Another advantage to a home-based business is the lower overhead costs making it a more affordable opportunity for retirees.
Examples of this type of franchise include:
- Home inspection
- Cleaning services
- Travel agency
- Online tutoring
- Home-based senior care
#5 – Pet Services Franchises:
This is another flexible opportunity with low overhead costs making it ideal for many retirees. In many cases, pets are an important part of retirees’ lives as they provide companionship. What better than to have an opportunity to work with animals while earning an income at the same time. It also gives retirees an opportunity for outdoor activity and socialization.
Examples of this type of franchise include:
- Pet grooming
- Dog walking
- Pet training
- Pet boarding
Tips for Buying a Franchise After Retirement
Buying a franchise later in life comes with some considerations that may be different from those faced by younger entrepreneurs. Taking the time to plan carefully can help you choose an opportunity that supports both your financial goals and your desired lifestyle.
Don’t Rush the Decision
Retirement can create a sense of urgency to find a new source of income or purpose. However, choosing a franchise is a significant financial and professional decision. Compare multiple opportunities and conduct thorough due diligence before committing.
Plan for Your Financial Needs
Don’t focus solely on the initial franchise fee. Consider working capital, ongoing expenses, personal living expenses, and the amount of time the business may need before reaching profitability.
It’s also important to consider how investing in a franchise could affect your retirement savings and overall financial plan. A financial professional can help you evaluate the potential impact.
Leverage Your Experience
Your years of professional experience can be one of your greatest advantages as a franchise owner. Consider how your existing skills, industry knowledge, professional network, and leadership experience could transfer to a franchise business.
Think About Work-Life Balance
Owning a business doesn’t automatically mean working fewer hours. If flexibility is one of your primary reasons for pursuing franchise ownership, make sure the franchise’s actual day-to-day requirements align with your expectations. Perhaps this means finding a franchise with a semi-absentee model.
Plan for the Future
Before purchasing a franchise, consider what you ultimately want to do with the business. Depending on your goals and the franchise model, your eventual exit strategy could involve selling the business, transitioning to a manager, or passing the business to a family member.
Considering Franchising As a Retiree?
Retirees should explore franchise ownership as a fulfilling post-retirement endeavor. Most people of retirement age aren’t looking to start another full-time job that carries the same stresses as their first career. The key advantages to all of these franchise opportunities are flexibility and low overhead costs while being able to secure a steady income.
Furthermore, while retirees may pursue franchise ownership for financial reasons, the benefits can extend beyond income. Owning a business can provide structure, purpose, social connection, and an opportunity to continue using the skills developed throughout a career.
If you’re retired and considering franchising as the next step, FranNet is here to help. Our expert franchise consultants will help you find a franchise opportunity that fits your skills and desires. Schedule your free consultation today to get started!
Learn about a retired Air Force pilot who found a second career in franchising with the help of a FranNet franchise consultant.
