Franchising Considered a Financial Retirement Strategy

Despite recent record highs in stocks and very low interest rates, many of the country’s financiers are still choosing to refrain from stocks as a major investment. According to a survey by Bankrate.com, 76 percent of investors do not feel the need to put money in the stock market, and this percentage is unchanged from last year. The sheer ups and downs of the market prevent some from wanting to go down that path because they don’t want to be burned again and lose money. How does this impact franchisees? The sentiment mirrors what some in the franchising community are considering for their own professional advancement. Some franchisees view the purchase of a franchise as a way to obtain professional autonomy, some to gain experience in a profession they have never been in and some as a tactic to plan for retirement. For Kim Colburn, who owns four Fantastic Sams locations across Texas in Houston, Richmond and Katy, and works as a senior vice president of commercial development and strategy at BP Energy Company, his aim was to put his money into something he could control as opposed to investing in the fickle stock market. With his wife, Colburn is learning a new business on all fronts. Fantastic Sams serves as a long-term retirement (semi-absentee) strategy for him and his family, since BP demands a majority of his time throughout the week. “I’m a guy in my late 40s starting to think seriously about a realistic retirement plan,” Colburn said. “I was seeing my money go sideways the last several years in the stock market, so I wanted to try to find something that would give me real cash flow during retirement rather than depend on the market to provide living expenses.” Colburn notes this dual-employment strategy can really pay off in the long-term, but it’s also an emotional process to grow one’s business because it demands ample weekend time, taking care of all problems and having one foot in your current, primary occupation and another in a new industry you’re trying to learn. Whether you decide to invest in stocks or purchase a franchise depends on your financial capabilities and long-term goals. But one thing is for certain, these options are not for everyone.