Why Do Parents Invest in Their Child’s Business?

(Newswire.net — January 30, 2020) Sydney, NSW — 

1. Franchising and the American Dream

The equal opportunity for prosperity and success is what the American Dream is about, and franchising has and will continue to offer this to many. Franchising offers a significant level of business and career independence. You can work for yourself without working all on your own. You get to utilize and benefit from the franchise who has done the hard work to set up systems, hone their marketing, push their branding and develop the creative direction of the overall business.

Franchising offers everyday American’s the opportunity to guide their own career path, set their personal and financial goals and strive for the lifestyle they desire.

As a parent, who wouldn’t want to give their own children every chance at the American Dream?

2. Lack of Corporate Opportunities

The past decade has shown us the decline in corporate opportunities, especially for the younger generation heading into the business world of today.

The benefit of joining a franchise is that it is on-the-job training. You don’t need the right degree or qualification or, in many cases, even specific industry experience. Franchises use solid business systems in order to increase the likelihood of success for every franchisee. Training is specific and in-depth, targeted to specific needs of that particular franchise.

Suffer job loss within the corporate sector and it usually comes down to qualifications and previous experience when trying to find another job. Often for many, this means upskilling and heading back to further studies or taking a lesser role.

Many parents understand this, often having experienced it themselves. It may be difficult for an adult child who has enough real-world experience to consider the possibility of re-entering full-time study in order to try and get back into or higher up the corporate ladder. Instead, Mums and Dads are seeing the potential their children have if they can move into the business world of franchising.

3. Low Interest Rate and Higher Return

Financing a franchise can be difficult with traditional lending options, especially for those who are younger and lack the assets that Mum and Dad might have at their disposal. For any type of business lending, a lot of planning, preparation and information needs to be ready, and this is often more difficult to achieve than it may sound.

A loan from a parent or parent guaranteeing a loan most often means a lower interest rate for those looking for financial backing.

Achieving any significant return through general money market accounts is very rare in these economic times. The opportunity for a higher return on investment is another reason why parents are keen to invest in their children’s businesses. 

Franchise Experts Here to Help

If you think a franchise investment, or investing in your child’s franchise investment, might be the ideal choice for you, be sure to get the right advice before making any decisions. Pulling on the knowledge and experience of franchise experts like All State Franchise Finders means the process of franchise selection, financing, purchase and set-up are laid out clearly before you sign anything.

Derek Cafferata and his team at All State Franchise Finders are here to help you with any franchising questions you may have. With more than 30 years’ experience in the franchising industry both here in the U.S. and around the world, Derek has become one of the leading franchising experts in the country.

To contact All State Franchise Finders, call 1-800-544-2161 or visit allstateff.com today. All State Franchise Finders – your Franchise Experts!