Suggesting son to invest in a Franchise

[Jenna]

Laundrymats can be quite lucrative

 

[Diogenes]

Our son is 34yrs old, has an MBA & earns around $110k working for a University. ...

University administration is a wonderful job, especially considering the healthcare benefits and the defined-benefit pension. One suggestion is for the OP's son to try to get promoted within the staff-hierarchy. Senior university staff positions are lucrative. Instead of side-hustles or business ventures, focus on the university career itself.

 

[rickster55]

So when I retired at age 55 about 15 years ago our household income was about $70k. We each worked with me making about $55k at a State govt job and we raised one child who was an adult when I retired, we both maxed out our Roth IRAs most years from the first year they became available. And I contributed some to a workplace 401k. Were we poor? I didn’t think so. We now live off my State govt pension and two SS checks. The house is paid for. All that savings is just sitting there waiting for a rainy day.

 

[Jim in PA]

I don’t see it in the previous posts on the franchise or small business option. As others have said it’s more than a full time job… but I would note that the person spending more than full time effort isn’t likely to succeed unless they have an outsized interest in that particular business.

Yeah, that pet store franchise looks like it could work here given the demographics. Or that ethnic restaurant… but I have no interest in food preparation. Etc.

 

[2cheap2eat]

The issue with being a franchisee is that you give up a percentage of your revenue, instead of profits, to the franchisor. Much like the AUM model, you may be losing money and you still have to pay your franchise fees. It is a non-starter for most of us. We actually spoke with a franchise broker before starting our own business and explored a couple of businesses. Some of them were downright bad, ie. being sold as a "lifestyle", i.e. you lose a ton of money to own the franchise, and expect to make no money from it.

Depends what type of franchise you’re looking at, for restaurants I would highly recommend a franchise. I’ve known friends and I’ve invested in both franchise and independent restaurants, overtime. All the independence ended up going under.

Can’t speak for other types of businesses, such as car washes, etc. you may have a better chance being successful as an independent.

I think the value of a franchise or in marketing and proven systems is invaluable to set up for success!