Should You Help Your Unemployed College Graduate Buy a Franchise?
Anyone who studies economic data realizes that we are slowly progressing out of this last recession, and it was quite a doozy. Still, the jobs have not recovered, and many kids are graduating from college, and they can’t find jobs, meanwhile they have student loans to pay. Not long ago, I was at Starbucks talking to a very nice couple whose son just graduated with a degree in education, but of course he could not find a job.
As we were talking I mentioned that in retirement I run a think tank which operates mostly online. They said to me; “well, if you are so smart, maybe you can help our son find a job.” Well, that’s a little bit of a difficult situation, and it’s not what you know, it is whom you know. Further, with all the teachers being laid off in our local area, I doubt if he will find a job anytime soon around here with his new teaching credential. But, I also realize that there are educational franchises available, and I mentioned this fact to the couple.
Indeed, the only problem with buying a franchise is that it costs money. Money that this kid doesn’t have and he’s already in debt for student loans to the tune of $65,000. Actually that is a low amount compared to the average these days for folks that have a bachelor’s degree. In any case that’s where he stands, and so I ask you the question? Should parents help their Unemployed College graduate buy a franchise, perhaps by cosigning a loan? In other words buying him or her a job?
It depends on the situation, and the franchise, and the success of the franchise system. It might indeed be at least one possible solution to such a dilemma. Of course you will have to do your due diligence, and make sure that the franchisor is financially fit, and that franchisees are not failing. Also, perhaps the franchisor would carry back half of the franchise fee, lowering the cost to purchase the franchise.
You’d be surprised to find that franchisors are quite interested in getting younger folks with lots of energy to become their franchisees. In fact, before retirement I was in the franchising business, and I always appreciated kids out of college because they were go-getters, and they helped build our franchise brand-name quite strong. Perhaps this is one option that you should consider, and I ask that you think about it.