Now What? Q &A: Franchise with a family member?

A caller from Spokane, Washington presented this question on a recent Community Call; answered by: Laura Berman Fortgang.  

Question:

I am a registered nurse and fitness trainer and recovering from knee surgery.  I don’t want to leave the industry but I know it’s taken a toll on my body, so I’m trying to figure out what’s next.  There is the possibility of opening a franchise with my brother.  Even though he’s been successful with other franchises, I’m feeling a bit fearful.  Do you have any thoughts that might help me assess this opportunity?                                                                                              

Answer:

As a post-op patient, you now have something in common with  your clients and patients.  It’s clear from what you’ve described that you don’t want to leave the industry.  While I’m not an expert in franchises, there are some issues to consider regarding money and risk and going into business with a family member.  You’ll want to talk about things such as: your expectations, roles, escape clauses if it doesn’t work out, and how this with affect your relationship with each other.  It’s essential to have that conversation first, yet many don’t.  Research is also important.  It’s great that he has a track record, however you want to weigh the risks and not necessarily mortgage your whole future.  In other words, think about how much you want to invest.  Is it all your dime or could you have a small ownership piece and be one of his managers?  Perhaps you could pay as you go and buy him out over time, so that your initial risk is lower.

Also, I find that a lot of people will have a theme throughout their lives.  I encourage you to do some of the exercises from Now What? (especially chapters 4 and 5) and see what your purpose is and what these themes are.  Your purpose may have transmuted over time and changed vehicles, i.e., nursing was first and now there is another vehicle emerging.  You want your discoveries in this exercise to be your guide for this franchise opportunity.  Does it really match who you are or is it an ungrounded move?  The bottom line is look before you leap both financially and emotionally.