Owning a franchise business is a great way for many people to start their own business with a lot of help and a better chance of long-term survival of the business. For those looking to be their own boss, people are practically lining up to buy franchises, especially with many white-collar layoffs.

Ok, confession. I am a former franchise owner. I was a franchise owner for five years, having successfully bought a territory, built a franchise and then sold it. The day I sold it I felt like I had been released from indentured servitude.

Owning Your Own Franchise: The Reality

My fellow franchise owners used to joke that owning a franchise is like buying a job. The fact is, unless you have a LOT of money and you buy a McDonald’s-type franchise, you’ll be working in that franchise yourself for 10-12 hours a day. Vacations are a rarity because, after all, who runs your business when you’re away? An employee? Maybe.

Look, I don’t want to discourage anyone here, but the reality is this. I was working 10-12 hour days most days and at the end of the week I was barely making enough money to pay myself. Oh, I had to pay the franchisor the royalty fee (6%), pay my employees, their unemployment, workers’ compensation, rent, advertising, utilities, and cars. Yes, I worked for myself, but the goal of any business is to make money. Not just do some. You know that guy who owns Quiznos? He will likely take home a maximum of $60,000 after his 12-hour shifts, six days a week. I know this because I became friends with someone who owned one and was distraught over having to work so many hours for such low pay. Again, it was his own business, but he sure wasn’t happy because he had left a six-figure job for a $60K one.

The business model for this century

However, the equation changes when you consider an online franchise business. I say franchise and use the term loosely because they are not really a franchise. Most allow you to sell their product and pay you a large commission on them. They, in turn, provide websites, email responders, and all sorts of training. You provide the time, sweat, and advertising dollars.

Ok, so I’ve done both. Which one do I recommend? It’s not even close: an online franchise or an online business. Look at it this way. I had a franchise. I was tied to a certain geographic area where my franchise business was located. Now, I pack up the old computer and hit the road. I run my business from wherever I am. In the South in winter and in the North in summer. In addition, it works 24 hours a day, 7 days a week and I trade all over the world. On the Internet with 1.6 billion English speakers and growing on it. If I decide to take a day off, I do. The leads keep coming in and so does the money. There is no employee to hassle you.

You want to make sure you choose a company with a great reputation that has been around for a while. A company that has reasonable costs and gives you real benefits and offers products you believe in. Also, you want a system to guide you. You know, someone who’s been there, done that, who you can call and talk to.

As a former franchise owner, I can only say that if I had known this in the year 2000, I would never have invested in a physical franchise and instead would have chosen an online business which gives me so much more time, freedom, and money.