KEY POINTS:
Who hasn't dreamed at one time in their career of marching into the bosses' office and uttering the words, "You can stick your pathetic job!"
An increasing number of Kiwis are quitting their jobs and buying franchises as an alternative career.
"The last reliable survey in 2001 suggested
that 93 per cent of all new franchise businesses were still in business after the first three years," says Simon Lord, editor of Franchise New Zealand.
Lord estimates there are around 20,000 individual franchisees in the country and says there are many reasons for buying into one.
Some franchisees want to work for themselves until retirement or set up a business to pass on to the children.
Others have a specific objective, such as one businessman who bought a run-down Robert Harris franchise with the plan to turn it around within three years and increase his net worth by $250,000.
In some ways franchising is a half-way house between paid employment and business ownership.
As a franchisee you get systems and support from the franchisor, but to succeed you need to be more than an entrepreneur at heart.
Having a passion for the industry you choose is essential.
That's why Roost franchisee Jonathan Brooks chose mortgage broking as an alternative career: he was a homeowner and property investor and related to his clients.
Auckland-based Brooks had worked for 25 years in software development and project management and was ready for a change - but starting his own business wasn't an option as he didn't have a killer business idea.
But with 350 franchises in New Zealand the choice was wide.
"I couldn't face baking bread at 5am in the morning," says Brooks.
After sizing up a number of mortgage broking franchises, Brooks chose Roost (then called Mortgage Choice) because he liked the way it was run and it had won industry awards.
As part of his six-month-long research period, Brooks met with existing Mortgage Choice franchisees and some who had left the business.
He also had to go through an interview process with Mortgage Choice to ensure that he was a suitable candidate.
Brooks officially bought the franchise for $45,000 in April 2005 and did a week's training in Dunedin.
He then wrote loans under the wing of the franchise manager for the first six months until he was fully up to speed with the business and its systems. It is this mentoring that many new franchise owners find particularly useful compared to going it alone.
Two years on and Brooks has not yet matched the salary he left. He is, however, on track to get to that level by the end of this year.
Around the same time he is expecting to begin employing people - an important step in building passive income, which adds value to the franchise and makes it more saleable.
One of the big advantages of being a franchisee or business owner, says Brooks, is that he can plan his work hours around his family and go to school plays or other events when it suits.
The vast majority of franchisees are career changers, says Lord. "Unless you have grown up in a family where entrepreneurship and self-employment are the norm, then it is quite hard to work for yourself straight away, even with a franchise behind you."
Craig Leathley, however, took a one-year course in hospitality operations at the local polytechnic in New Plymouth and had bought his first franchise within the year.
Leathley, who managed bars for a few months, realised quickly that he was working long hours and someone else was making the real money. So at age 20, with six months planning behind him, he bought a Bevinco franchise for Taranaki.
The company provides profit management consulting for bars and eateries.
Leathley had to raise $60,000 to buy the franchise, which came partly from his family and partly from the bank.
He says the first few months were a hard graft.
"I was dealing with 40-year-old bar owners and there was this 'who's this little whippersnapper' scenario."
But after eight months, Leathley had picked up a number of clients, started earning money and knew he'd cracked it. Twelve months into the business he bought a second franchise in Manawatu, and 18 months in he was turning a profit.
These days he has a couple of employees making money for him.
One of the main reasons for going into business for many people is to get a capital gain at the end.
It's no different with franchises, but you do need to check out the terms and conditions of the deal in detail.
Not all allow you to sell on the open market.
Franchising as a career often means buying one franchise, building it up and then possibly buying more territories from the same company.
An alternative, says Lord, is the business being offered by PoolWerx, an Australian-based franchise that has just moved into New Zealand.
Franchisees initially offer mobile pool care services, then. as the business grows, they set up a retail hub and employ people to do the pool care.
Franchise selection tips
* Take your time deciding.
* Talk to as existing and former franchisees.
* Read books and websites such as www.franchise.co.nz or www.franchiseassociation.co.nz
* Seek specialist franchising accountants and lawyers.
* Visit one of the big banks' franchise teams.
* Expect to work harder than ever.
* Find mentors and role models.
* Pour your energy into the business, not social and sporting commitments.
