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relationship between franchisor and independent contractor, the franchi- see,” Kaufmann says, noting that he believes the NLRB’s motivation is for labor unions to be able to negotiate a pay rate with McDonald’s corporate. “This goes against 50 years of judicial decisions,” he adds.
The International Franchise Association states: “If this ruling survives legal challenges, it will im- pose additional costs on franchisors associated with the need for more oversight and insurance against risk. Uncertainty about how this issue will be resolved could impede the growth of franchise business formation, em- ployment, and output.”
Keys to
Franchise Success
Despite these headwinds, franchis- ing can be the right choice for anyone looking for something other than the current world of regular employment, where, as Berkman says, “There is no real security for anybody, anywhere.” Of course, not everyone is suited to running a business. But you don’t need experience or a special skill set in any particular sector to succeed, Dunne claims. Indeed, past experi- ence may be a shortcoming. “Most franchises don’t want people with a background in the business,” he says. “Financial franchisers consider those with a financial background untrain- able. Franchisors will train you how to be a successful owner.”
You don’t need to be a big- picture entrepreneur either, Dunne says: “People like Elon Musk and Sir Richard Branson would make horrible franchisees because they couldn’t follow the systems. Fran- chising does very well with first- time business owners, because it’s
like cooking from a recipe.”
That’s what attracted Nataliya
Kisseleva and her husband, Andrei Kisselev. They both left Manhattan- based corporate jobs to try their hand at running a business. “We wanted to see if we were made for entre- preneurship, if we could handle it,” Kisseleva says. “We went with the safer route, with a franchise, because it gives you the infrastructure and support, rather than running it com- pletely on your own.” They chose to franchise with a lesser-known busi- ness, which offers both benefits and challenges. About six years ago, they signed a contract with Massage Envy, a chain offering monthly member- ships for massages and facials and opened the first Massage Envy in the county, in Scarsdale. (There are now several others.)
Pioneering the region affords a unique opportunity to any busi- ness, and that was attractive to them. “Being first can work for you,” she says. “But there are also challenges you have to overcome. No one knew what we were about,”
she says. “There was a lot of cheer- leading we had to do.” They led their own cheers at every health fair, chamber of commerce event, and community gathering they could at- tend, drumming up as many articles in local publications as they could muster. “If there is any type of ex- posure in the community, you have to be there, explaining what you are about,” she says.
Going with a newer franchisor also means staying on your toes. “This franchise has gone through many changes, and you have to be flexible and agile. Even if you don’t agree with everything they do, you have to do it,” she says. “You have to figure out, at this location in this community, what can you do to spin it your way to run your business?”
The most important factor in franchise success, though, gets back to passion. There is nothing easy about running a business, so it’s crit- ical that owners feel strongly about their brand. While looking for his franchise fit, Magnus came across an idea that resonated for him and his family. “I have kids, and having a place for them to eat high-quality food is something my wife and I talked about,” he says. “When we saw this idea of grass-fed organic beef, we knew this is what we are talking about. I am proud to repre- sent Elevation Burger. In a sense, it is a personal mission.” •
David Levine, an Albany-based free- lancer has written for Westchester Magazine, Hudson Valley Magazine, the New York Times, Sports Illus- trated, American Heritage, and many other publications.
BY THE NUMBERS: Who Owns Franchises? 28.1%
71.9%
MEN
Median age of franchisees, with 12 percent younger than 34 and 28 percent over the age of 55
45 to 54
44%
of franchise owners have a bachelor’s degree
19%
hold an advanced degree
Source: The Wall Street Journal
WOMEN
Franchise Costs
According to franchise consultancy FranNet, 30 percent of all franchises in the United States require an initial investment of $100,000 or less:
Under $50,000 13%
17%
$100,001-$250,000 28%
AVERAGE INITIAL INVESTMENT
PERCENTAGE OF TOTAL FRANCHISES
$50,001-$100,000
$250,001-$500,000
23%
Over $500,000 18%
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