With the cost of a college degree surpassing the annual rates of inflation and the job market is so weak due to a poor economy, it is no wonder why so many young adults graduate with an average debt of $30,000. The researchers also note that student debt figures could be misleading because colleges/universities may not account for private loans students take out that the school is unaware of. Nationally, nearly 20 percent of all graduating seniors’ debt came from private student loans.
Does graduating from college guarantee you or your children a job? Not always. Our economy is a capitalist economy and if you graduate with a degree that is in low demand – those college graduates may spend the first few years of their careers underemployed or in a career outside their major. The problem is – not everyone can be a programmer, engineer, or a multi-lingual international business degree graduate. Plus what is “hot” now may not be in demand in 4 to 5 years.
Why Franchising? You can be anything in a franchise. Do you have a passion for children – we have that franchise. Do you want to be in the hospitality industry – we have that franchise. Are you interested in helping people – we have that franchise. Do you like working with your hands – we have that franchise too.
Is starting a franchise expensive? It can be. Can you get an SBA Loan to start a franchise? Yes, you can. If we had children that were about to go into college, I would ask them about franchising and give them a head start on their peers. As a business person, I can see a better ROI going the franchise route in today’s economy.
I went to collegedata.com to see what the average cost of tuition, room, and board, books, and incidental items was for the school year 2013 to 2014 for the average state college.
Tuition $ 8,893
Room and Board $ 9,500
Books $ 1,207
Incidentals $ 2,580
Total Year 1 $22,180
Assuming 3% inflation per year
Total Year 2 $22,845
Total Year 3 $23,531
Total Year 4 $24,237
Total for 4 Years $92,793
This cost can be even higher for a private college. Let’s take an even $100,000 for the cost of a 4-year degree. This is a lot of money to start a franchise.
We have over 300 franchises we represent – from brick and mortar to work from home. Franchise fees range from $10,000 to over $100,000 (we would not recommend buying a $100,000 franchise for a child). So which franchise is right for your family? What are your or your child’s interests, where do you live, what is your credit score, what franchises are available in my area that makes sense, does the family have retirement funds to help fund the business, are you or your child mature enough to take on the responsibility of running a business, can you rely on your parents for support and guidance, are you entrepreneurial (we have a test for that)… There are so many questions to be answered and it this a risk you are your family are willing to take? This is an investment.
Why talk to us? Our job is not to just sell you a franchise. Our job is to help guide you through the process of possibly buying a franchise. We have told some people to not buy a franchise because they did not have the time, money, level of commitment, passion, credit score, right market, or support to start a franchise. Buying a franchise does not guarantee success. You must evaluate the opportunity and identify all the risks and rewards before investing.