(Davenport-Rock Island-Moline, IA) For many experienced businesspeople, a franchise opportunity can offer a fresh start in the business world and a new challenge. Especially during the recession, when talented executives and managers were losing their jobs at unfathomable rates, franchising remained a strong business structure, as it attracted these individuals.
"They called it rightsizing - they had all sorts of euphemisms for it," franchisee Reynolds Corea, a 50-year-old father of two college students, told the Indianapolis Star. "But it was a layoff."
Fortunately, Corea and many other "corporate refugees," as the source calls them, found a second opportunity in the strong franchising sector. In fact, franchising as an industry is preparing to grow at a rate of 2.5 percent in 2011, according to the International Franchise Association's 2011 Franchise Business Economic Outlook. Furthermore, franchising is expected to add 2.4 million jobs in 2011, helping to propel its economic output from $706.6 billion in 2010 to $739.9 billion.
Why has this model become so popular, especially in a time of economic turmoil? Because it reduces the risk for businesspeople. In an independent business, individuals can sink their retirement funds and home mortgages in a venture without a marketing strategy, proven product or developed audience.
Franchising, however, provides all three of these aspects and also offers franchisees a support system, including experts and training programs,that they can lean on in times of trouble. “Franchising shortens the learning curve and allows the franchisee to apply all of their professionals skills while the system compensates for less developed areas,” added Sarkauskas, Liberty Tax Area Developer.
"You are accepting someone else's business model, their public image, their cost structure, and you are agreeing by and large to follow their policy manual quite rigidly. That arrangement can be a source of great comfort," John Pearce II, endowed chairman of strategic management and entrepreneurship at Villanova's School of Business, told the paper.
However, a support system does not mean that a franchisee is forfeiting a sense of ownership and independence. Especially for individuals exiting the corporate world, being their own boss is of paramount importance.
About Liberty Tax Service
Liberty Tax Service is the fastest-growing retail tax preparation company in the industry’s history. Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 8,000,000 individual income tax returns. With 42 years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service.
Liberty Tax Service is the only tax franchise on the Forbes “Top 20 Franchises to Start,” and ranks #1 of the tax franchises on the Entrepreneur “Franchise 500.” Each office provides computerized income tax preparation, electronic filing, and online filing through eSmart Tax.
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