I’ve previously discussed what to expect in your first year as a franchisee and franchise ownership after five years, but what does franchise ownership look like after 10 years?
Approximately 20% of franchise owners in the United States operate their business for more than 10 years.
In my experience, I’ve seen three typical outcomes for people who have been franchise owners for 10+ years: retirement, expanding the business, and passing the torch.
Retiring After Building a Proven Business
After 10 years of being a franchise owner, some people are ready to retire or spend their time following other passions. Anyone looking to sell their franchise, whether it’s after two years or 10 years, first needs to make sure their business is in good shape and ready to attract potential buyers.
Over the course of 10 years, many veteran franchise owners have built a matured, proven business that they can easily sell.
Franchises are built on a proven business model from the start and after a decade of growing and nurturing that business, you’ll have refined your processes and accumulated plenty of numbers and data to show potential buyers interested in purchasing your business.
Expanding Your Business and Creating Recurring Revenue
After a decade of franchise ownership, some franchisees seek opportunities to expand their business and create recurring revenue. At this point, you have the experience to build on your initial success and create a multi-unit business.
It’s also possible to expand even further into a multi-brand empire. Managers can be hired to handle day-to-day operations, and you can step back and oversee the business.
Expanding your franchise business comes with some significant benefits:
- Creates a predictable, recurring revenue stream.
- Helps to diversify your income and investment portfolio.
- Gives you more freedom and flexibility, and the opportunity to step back from the day-to-day operations of the business.
With your business running smoothly and generating income even without your direct and daily involvement, you gain the flexibility to explore other aspects of life. Whether it’s traveling the world, spending more time with family, or pursuing other passions – the 10-year mark gives you the opportunity to live life on your own terms.
Passing the Torch and Leaving a Legacy
Another rewarding outcome of a decade in franchise ownership is the option to bring your children and family into the business. You can pass the torch to the next generation, giving them an opportunity to continue your legacy.
Among franchise owners who have family to pass their business on to, about 34% of franchises are actually passed on from parents to their adult children or relatives.
Some franchise owners choose to stay on in an advisory role, at least for a while, until they are ready to fully retire. This transition can be incredibly fulfilling as you watch your children take the reins and shape the future success of your family business.
The Benefits of a Decade in Franchise Ownership
In the span of 10 years, many franchise owners have diversified their investments, from investing into offices, real estate, and other independent businesses. This diversification provides opportunities to re-invest their capital and helps secure their financial future.
At this point, you are in a secure and stable position. Your franchise has evolved into a well-oiled machine, and you have the freedom to make choices that best suit your lifestyle and goals. You’ve put in the hard work and reaped the rewards. Now you have the opportunity to enjoy the fruits of your labor.
After 10 years of franchise ownership, you can live life on your terms. This is the greatest benefit.
Whether you choose to sell your business and retire, expand into a multi-brand empire, or pass the torch to the next generation, reaching the 10-year milestone is a testament to your hard work and perseverance.
What do the next 10 years hold for you? Reach out to learn how franchise ownership can continue to help you reach your financial and personal goals.
