The nation's economic troubles over the past few years have made it difficult for college grads to find jobs and put many working parents out of a job. It's no surprise, then, that the two generations are coming together as franchise owners. The Wall Street Journal pointed out that the number of parent-child franchisee partnerships reached 10 to 20 percent of all franchising arrangements 2013 and has been on the rise since the Great Recession. Pooling the resources of a college graduate, experienced parent and helpful franchisor is a recipe for food franchise business success. Review the ins and outs of franchising partnerships between kids and parents and see if the business venture is right for your family.
Economic troubles drive family business ventures
Data released by the Associated Press showed that the proportion of college grads who are unemployed rose 10 percent between 2000 and 2011. Over the same period, the Bureau of Labor Statistics reported that the average time that those over 55 spend in unemployment is increasing. With two unemployed, educated individuals in the same neighborhood, it's only a matter of time before the pair begins making plans to better support the entire family. This is especially true if there is professional overlap between the parent's previous career and the child's college education. A child with a business degree, for instance, could help a people-oriented parent to run the logistical side of a food franchise business.
Franchisor training provides bonding opportunity
Often it is the passion of the franchisee that determines the long-term success of the franchise. If both parent and child are equally invested in their new franchise business, both family members can feed off each other's energy and remain motivated. Co-ownership of a food franchise also provides families with extra chances to spend time with one another and bond. If a parent is looking to reconnect with their child after college, the task of running a business together is sure to provide both partners with plenty of quality time. Finally, a franchising partnership can help parents and children grow by giving the pair an opportunity to share skill sets. Parents can train their kids in the ins and outs of leadership, while recent grads can supply with the inside scoop on social media and technology solutions.
Trust is key to a successful partnership
Members of the Young Entrepreneur Council responded to a survey hosted by the YEC and funded by Citibank, according to The Huffington Post. Their responses suggested that the current relationship between a parent and child will ultimately determine if they can handle life as business partners. A working relationship requires honesty and trust, so parent-child combos with a history of communication issues might not want to take the plunge into co-ownership just yet. Families with experience working together on hobbies and projects, however, have a good frame of reference for how they can expect a working relationship to function.