A lot of people in the D.C. area will spend this weekend finding out more about ways you can become your own boss. The International Franchise Expo is in town, and it may not cost as much as you think to become a small business owner.
How about juicy burgers for the health conscious eater?
“Kraze Burgers,” spokesperson Grace Lee said. “We have 110 locations worldwide in Singapore, Macao and Korea.”
A traveling video game ride? Or maybe the No. 1 Caribbean food franchise in the country.
“This is for anyone who has the entrepreneurial spirit,” said Golden Crust’s Steve Ament.
Almost 200 business opportunities at this year’s International Franchise Expo attracted Baltimore native Charles Faison. For 10 years he worked in the Frederick County Public Schools system but was laid off last July.
“Things are getting a little tight out here,” Faison said. “I thought I would pick up something immediately with all my experiences, and I found I didn’t -- and couldn’t.”
With the numerous jobs he’s held, now in his 60s, Faison is hoping to become his own boss and buy into a franchise.
So what does he look for in a company?
“I look at the product line and the service and look at if it is something that I would be comfortable doing,” he said.
Industry experts said some of the hottest businesses right now are in the service industry and franchises related to children. James Mastrandrea, who runs the expo, said people hesitant to open a new business on their own are a perfect fit for a franchise.
“It’s a system that has been in place. It has been tested and fine tuned,” Mastrandrea said. “There’s an operation and a team behind the name.”
While many of these business opportunities may seem attractive, one of the biggest hurdles of buying into one is having enough money. Some of the start-up costs can range into the millions. But there are others that cost as little as $10,000 -- like Jani King, a commercial cleaning company.
If you’re worried about finding a loan in this economy, the franchise industry has that figured out, Mastrandrea said.
“They’ve seen these types of developments and cycles before, and they’re very creative with their lending programs,” he said. “They’ve actually come up with their own self-financing programs.”
Faison is still looking for the right fit but hopes through a franchise he will soon be able to retire.
It's important to do your homework if you're thinking about buying a franchise, experts say. Talk to other franchise owners about their successes and failures.
Also be prepared to have some capital in reserve to live on -- because it may take a few years to become profitable.
The International Franchise Expo will be at the Washington Convention Center April 1-3. Tickets cost $30.
