Peter Hans

The United States is in the worst recession in 60 years. We've got plummeting retail sales, corporate bailouts, downsizing, a soft real estate market and foreclosures, a health-care crisis and record unemployment. So with all the bad economic news, why would anybody think of buying a franchise?

Frankly, the tough economic times are precisely why many people are looking at owning their own franchise as an option to an unstable job market. And that has brought many new faces to franchising over the past year.

Those new faces include:

Corporate casualties and refugees

This growing pool of new franchisees includes the recently downsized, who have chosen to work for themselves rather than put their fate in the hands of Corporate America again, and those who did not get downsized but are tired of waiting for the other shoe to fall.

As spokes in the corporate wheel, these individuals have seen how businesses run and bring a variety of skills to the table in running a franchise. And while the soft real estate market may have done a number on their home's equity to use as capital to buy a franchise, many have earned enough long enough to be able to raise the money to buy a franchise.

Beyond managerial and executive skills, this group of franchisees also brings an added dimension to the table. After years, even decades, of working for somebody else, these folks are now running their own show and more in control of their own fate. So rather than cruising towards retirement, these individuals are now in the game in the middle of the action. That can create an empowered, passionate franchisee willing to go that extra distance to become successful.

Retirees

According to recent surveys from the franchise research firm FRANdata, individuals in the 55- to 70-year-old bracket represent the second largest group of franchise seekers. Much like the corporate casualties, these retirees have seen their nest eggs dwindle with the stock market and determined that it just won't be enough long-term. Plus, many of these retirees took golden handshakes, perhaps before they really wanted to enter full-time retirement. That makes entering into a franchise situation, particularly one that offers some flexibility in schedule, very desirable.

Take for example my company, Resort Maps. We create more than 90 customized travel maps across the United States, England and Puerto Rico. It's the charge of our franchise owners to find advertisers for the map in their territory. The time frame for which the franchise owner finds those advertisers is totally up to them. So they're not stuck in the 9-to-5, Monday-through-Friday, 12-months-a-year grind. An opportunity like that can be the perfect segue into semi-retirement for some, especially for couples.

Women

According to Department of Labor statistics, women now make up the majority of full-time workers in the workplace. That said, that means more women are subject to downsizing or the threat of downsizing and seek franchising as a way to control their own destiny. In many cases, female franchise owners have found running their own business via a proven franchise system to be a way to make their own schedule and adjust it to family life.

Veterans

Veterans returning from duty and looking for a franchising opportunity is probably a fairly new phenomenon. Not that it hasn't happened before, but with activity overseas winding down and the economy still in tough shape, it's something we're likely to see more and more.

The veteran faces the challenges of raising capital, something difficult to fund with a military pension or wages. Still, many franchisors offer discounts to veterans, which has helped them to become one of the "new" faces.

Of course, many of the "new faces" come from areas that have consistently drawn franchisees. Those include: existing or multi-unit franchise owners; professional athletes; and managers at existing franchise locations who are ready to make the leap to ownership.

While purchasing a franchise may be "safer" than starting a business from scratch, it's certainly not without risk, especially in a poor economy. You still need to do your homework and shop for the right opportunity.

When looking at franchises, you should be looking at two things first and foremost: 1) does the franchise have a strong track record of success over the long term and 2) does the franchise have a fair franchise agreement and a collaborative franchise culture? If the answer is yes, then the franchise option of business ownership can actually provide a strong alternative to re-entering the job market. And that's probably what will continue the influx of new faces to franchising over the next few years.

There is one caveat for those who think franchising is a way to have complete control of your destiny. Franchising is not necessarily for independent thinkers who want to call all the shots. It can, however, be a happy medium for those who want to be "in business for themselves" but are willing to follow a specific business plan. If you are not used to following a defined set of rules, franchising may not be for you.

The trade-off, however, is that a strong franchise network provides you opportunities in economies of purchasing, marketing and pricing. As part of a franchise, you have an entire network of fellow franchise owners for support. So while the independent business owner is left to his or her own devices to figure out a way to better run their operation during troubled economic times, the franchise owner has a franchisor and fellow franchisees as a sounding board.

And that is a huge draw to anybody looking for a business opportunity in good times or bad one of many reasons why the influx of new faces will continue for the foreseeable future.

Peter Hans is the president of Resort Maps Franchise, based in Waitsfield, Vt. Resort Maps creates customized travel maps over 90 cities and towns across the United States and the United Kingdom. For more information, please visit www.resortmaps.com.