Franchise ownership offers an entrepreneurial future full of freedom and flexibility, where all the hard work and effort in running the business is returned back to the benefit of the owner. As an alternative to climbing the ladder in Corporate America, it’s an increasingly attractive option for many employees, as evidenced by the popularity of franchising. With the number of franchise establishments quickly closing in on a million units, employment nearing nine million, and output in the hundreds of billions of dollars, it’s safe to say that the industry has never been healthier.
So, why keep all that success to yourself? In this Unleashed Brands blog, we’re going to look into the benefits of owning a franchise operation as a family – something we’re seeing more and more with our youth-enrichment brands. Keep reading to learn how entrepreneurship can be the ideal family affair.
Stats You Need to Know
If you’ve ever considered owning and operating a franchise as a family, you’ll be in good company. According to statistics compiled by the Conway Center for Family Business, family-owned businesses are the literal backbone of the U.S. economy. Full disclosure, the following data also includes non-franchised operations, but the sentiment remains the same. Apparently, the family that works together, thrives together – as evidenced by these eye-opening numbers:
- 64% of the GDP in the U.S. originates with family-owned businesses
- Family-run businesses generate 62% of employment, and 78% of new job creation
- More than a third of family-owned businesses are handed down (more on this below!)
- Family-owned businesses are way better at retaining talent
Why Family Ownership Makes Sense
Values like trust and commitment run much higher in family-owned operations than non-family-owned institutions. When looking at the legacy model, in which the business is passed down from one generation to the next, incremental wealth remains with the family unit. Depending on the depths of established connections, family-owned franchise operations are typically seen as more authentic to the community and its consumers, and trust is given more freely. Lastly – and it goes without saying - multi-generational knowledge and perspectives can offer significant competitive advantages for family-run businesses. Families with tight-knit relationships enjoy one another’s company. They dine together, attend church together, vacation together, and even enjoy the same activities. It’s all about spending quality time together. So why shouldn’t business ownership be considered?
But a Word of Caution…
At Unleashed Brands, we’d be remiss in failing to mention that there are drawbacks and pitfalls to family-owned businesses. Successful operations rely on clear-cut boundaries that separate work and free time. Families must agree to adopt a strictly professional approach, where loyalties aren’t taken advantage of in the day to day operations of the establishment. No family is perfect, and disputes and disagreements do occur – sometimes often - regardless of social status, income, or means. An established hierarchy of leadership is necessary to ensure a smooth operation, and that includes a transparent succession plan for down the road.
Unleashed Brands decided to blog on family-run businesses because we’re beginning to see more and more parents with children take an avid interest in franchise ownership. Regardless of the youth-enrichment brands they’re evaluating, they too see the benefits of forming a family-owned and operated establishment. And most appear to view the undertaking as a long-term plan that will further strengthen the bonds between them, offer them a chance to work together for a common purpose, and ensure that incremental wealth has a generational line of succession.
You know? We happen to think they just might be on to something. If exploring a business opportunity in which the whole family can participate and contribute interests you, we’d love to help you explore the options available to you in the Unleashed Brands portfolio of franchises.
A Little More About Us…
The Unleashed Brands platform includes Urban Air Adventure Park, Snapology, The Little Gym, XP League, Class 101, Premier Martial Arts, and Sylvan Learning Centers – all youth enrichment franchises. As the parent company, Unleashed Brands was founded to curate and grow the most innovative and profitable business opportunities that help kids learn, play and grow. Over the last 10 years, the team at Unleashed Brands has built a proven platform and know-how for scaling businesses that focus on serving families. All have become first-in-category brands by providing fun, engaging, and inspiring experiences that help kids with their No. 1 development goal – to become who they were destined to be. To speak with one of our franchise experts and learn more about our children’s business opportunities, simply fill out this form and an Unleashed Brands representative will be in touch shortly.
