How to become a franchisee when you’re over 50

Olderpreneurs are sweeping into the start-up world and many are using a franchise to do it. Linda Whitney reports

People over 50 account for 43 percent of those starting new businesses - the largest age group among new starters, according to Office for National Statistics figures for 2015. Meanwhile, the number of self-employed people aged 65-plus has more than doubled in the last five years.

A combination of issues may be encouraging these olderpreneurs. One third of workers made redundant in the UK last year were aged over 50 - the highest proportion recorded this century, according to research by financial services company, Just.

The likelihood of being made redundant at 50-plus is increasing. The research showed that while redundancies among most age groups are on a downward trend, the rate for older workers is increasing: they made up 34 per cent of those made redundant in 2016, up from 24 per cent in 2000.

What’s more, employers, though legally forbidden to discriminate by age when recruiting, appear to do so anyway. The research showed that over 50s found it harder to obtain another job after redundancy, with just 29 per cent finding work within three months, compared to 44 per cent of those aged 35-49.

On top of this, changes that have put back the age at which women get state retirement pension have meant that 2.66 million women have lost out on income they were expecting.

But in the midst of bad news there are opportunities. Many over 50s are choosing to set up in business for themselves because they want to be in charge of their own destiny and a franchise is increasingly seen as a good way to do it.

British Franchise Association fi gures show that 43 per cent of all franchisees were aged over 50 in 2015 and that the over 50s make up the biggest age group among franchisees.

The attractions

Many over 50s have decades of productive life ahead of them, but they may not want to spend years learning new skills and establishing a new career. Franchises offer aspiring entrepreneurs a proven business model, so they can get into business fast.

David Bigmore of franchise specialist solicitor David Bigmore & Co in association with Goodman Derrick says: “Anyone over 50 can tell you that you can teach an old dog new tricks. “The great thing about taking a franchise over the age of 50 is that the ‘old dog’ does not need to learn any new tricks. All he or she needs to do is follow the system as laid down by the franchisor.”

Age can be an advantage

Julian Westwood, a Diamond Logistics franchisee in Birmingham, who invested in the franchise after 20 years in the recruitment sector - including running his own business - says franchisees over 50 have an advantage.

Julian adds: “Over 50s will have a wealth of experience, especially if they have run a business, where they will have picked up a lot of knowledge, experience and contacts.

“I suspect most over 50s have financial resources available to them, as well as a lot of business expertise and life experience. When I first met Kate Lester, the franchisor, and the other franchisees, straight away I knew it was a better alternative than starting a business from scratch.

“There can be a stigma attached to over 50s, meaning some business options can be limited. A franchise is an attractive alternative.”

Don’t assume it’s too late

Jane Stacey started a Baby Sensory franchise when she was 60 with her daughter Abi.

Jane says: “I was made redundant at 59 from my admin job with government funded business advice service Business Link, but I wasn’t ready to retire.” Jane is one of the women for whom access to their state pension has been delayed.

“I wasn’t going to be able to access my pension at 60 and I had wanted to run my own business all my life, so when Abi, who took her children to Baby Sensory classes, said the local area franchise was up for sale we decided to invest.”

Jane found that age was a benefit, even though she was much older than most of the others at the training sessions: “My previous experience of admin, cash flow and general business knowledge prepared me well for running a start-up.”

Be ready to learn

Jane says: “When people think that they are old, they can put up barriers to learning new skills, but running a business forces you to do it.

“I now use Facebook, Twitter, Instagram and Snapchat. I love learning new things - it keeps you mentally alert.”

Consider your energy levels

Take your energy levels into account. Jane says: “I started out running our Baby Sensory classes, but since the business has grown my daughter and our three staff run the classes while I do the admin and accounts.”

How age lends you credibility

Mark Cadbury, 52, is a franchisee with ActionCOACH, providing coaching to business owners.

He says: “The first thing clients look for in a coach is business and life experience, so having a few grey hairs helps.”

Mark also points out: “Age and track record tends to give you more confidence, which helps when you’re selling a service.”

He advises other people considering investing in a franchise over 50: “It’s important to understand what you want to achieve by starting a business, how long you want to be in it and whether you want to build it up as an asset, so that you can sell it on later, perhaps to help fund your retirement.”

Mark warns: “Don’t treat a franchise as a way to ‘wind down’ into retirement. In the early days in particular, it takes a lot of work to get a business off the ground, so you must be prepared to put in long hours at first.

“Once it’s properly up and running, though, it can deliver a much better lifestyle than being an employee. I will never go back to working for someone else.”

Mark Cadbury, 52, is an ActionCOACH franchisee