Because of corporate downsizing, many people have been laid-off or voluntarily taken early retirement packages and/or incentives. This happens when times are good due to mergers and acquisitions or when the economy is in the dumps and corporations are working to cut payroll costs. Almost all of these people have absolutely had it with corporate life; they feel burned and unappreciated. They realize that there is no such thing as job security. If a franchiser sales team gets the lead in time, they may still have good credit. If not, these laid off employees will have spent their savings on family crisis type emergencies and day-to-day living expenses. They will have either taken a job for less pay somewhere else out of necessity or be in a line of work totally foreign or unrewarding. Once this happens, they may no longer be in the market for a franchise.
These corporate victims may have never even considered owning a small business, but if they have, now is the time their desire would be the strongest. Since they won't know a thing about running a business, they will be very interested in what we have to offer, because we have taken all the guess work out of it.
Most franchise companies believe this to be their best market for franchise candidates. They have responsibility, families and don't have a way out. They are usually quite serious and are at the end of their rope. It's either sink or swim from here on out. The bank will take their house and cars if they don't have an income. They can't afford to lose, they have to win. They will dig in deep and give it 110%. Franchise companies need this level of dedication to grow strong.
The best thing you can possibly do for a person who has been laid off is give him/her a job. Their self-esteem and self-worth will come back and they will be whole again. No more mid-life crisis for them. They've been to the bottom and like a super ball; they will bounce back.
There are some drawbacks to this type of prospective franchisee and a franchisor needs to decide if they can over come these issues in their particular business model. Here are some of the drawbacks:
Many Are Out Of Shape
Many Have Never Done Any Physical Or Manual Labor
Many Are Introverts To The Third Degree
Many Are So Desperate That They Will Try Anything Even If They Know It's Not For Them
Many Have Defaults, Judgments, Bankruptcies Or Collection Accounts On Their Credit
Many Are So Analytical That They Will Sign The Franchise Agreement Based Upon The Numbers Instead Of Their Ability To Sell, Manage And Operate A Franchise
There are lots of good reasons why they should become franchisees however and why a franchising company should look to laid off employees as potential candidates to become franchise team members:
They Will Completely Understand Our Computer System
They Will Follow Our Manual/Model To The Ninth Degree
They Have Always Followed Systems Management
They Have A Knack For Perfection
They Don't Have A Strong Ego To Satisfy
They Are Used To Stress And Work Better When The Pressure Is Removed
They Are Used To Everything In Moderation, Which Is Great As Long As They Don't Over Do It
They Are Smart, Fast Learners And Will Read All Manuals
They Can Achieve Greatness As A Franchisee (With Our Proper Guidance)
So where some of these are major drawbacks, many are absolute advantages. Any franchise company who truly wishes to expand their numbers needs to look a the large corporation laid off employees lists. Think about it.