Article by Blake Martin, FranNet of The Heartland
As a franchising consultant with over 20 years of coaching and consulting experience, I’ve seen my fair share of married couples looking to go into business together. And, in the early stages of the franchise investigative process, it’s not uncommon to hear them ask, “Is this really a good idea?” Ultimately, I can’t provide them with a definitive answer to a subjective question like this. But thanks to my background (and a degree) in Psychology, I do think I’m qualified to provide further insight and analysis on the complicated topic of joint business ownership. While the findings may not fully ease their concerns, hopefully it’s information that can help them make a more informed decision about their future together as business owners.
First and foremost, what kind of data and statistics are available on married couples who own and operate a franchise establishment? According to the best consensus from various studies and surveys on the subject, it’s estimated that approximately 17-25% of all franchise owners in the U.S. are both married and run the operation jointly.
Despite the obvious risks that come with combining marriage and business, and by extension integrating your home life with your work life, plenty of recent surveys and studies reveal that husbands and wives can – and do – make this work every day. But as you’ll see, from complementary skill sets to shared financial goals, married partners often bring advantages that align well with the structure and demands of franchising.
Having a Shared Vision. Maintaining a Long-Term Commitment
One of the most significant strengths married couples bring to franchise ownership comes in the shared commitment of their long-term goals. Since most franchise systems are based on multi-year agreements (typically 10 year renewals), success is more reliant on maintaining a sustained effort rather than short-term accomplishments. It’s not at all uncommon for couples to approach financial decisions, risk tolerance, and life planning in concert with one another, contributing to the long-term perspective required for success. An obvious strength lies in the fact that most married couples enter business ownership with a close-knit, committed relationship built on love, support, communication, and perhaps above all – compromise. These shared values become the bedrock foundation of stability as they navigate the early stages of launching a franchise business, which is typically when the learning curves, staffing challenges, and operational hurdles occur. Recent research in the study of family business dynamics supports these conclusions, consistently revealing that couples who collaborate in business often succeed due to their shared commitment to the organization. The family that plays together stays together, as the saying goes, especially when the stakes are inexorably tied to their family’s future and financial security.
Getting Off on the Right Foot…Together
The first year of franchise ownership is often the most challenging. And many franchisees underestimate the responsibilities that come with long hours, hiring and managing employees, and the sheer effort required to meet customer expectations. Despite the comprehensive training programs provided by the corporate office, it takes time and patience to understand the systems, networks, and operational systems. Couples often benefit because of the built-in support system already in place. For couples who own and operate a franchise together, there is an added benefit in the emotional support and grace they offer one another – which can make the early phase of operations much more manageable. This is demonstrated in the way couples “lift one another up,” putting the other’s needs before their own. Having each other’s back is indeed a shared experience, with numerous studies concluding this approach can reduce instances of burnout, a common occurrence for those who unknowingly commit to more than they can handle. Another aspect of co-ownership that couples enjoy is greater flexibility in assigning and scheduling responsibilities, often splitting up the duties in a 50/50 arrangement. This can be particularly helpful when it comes to juggling schedules that include childcare, errands, doctor’s appointments, and other commitments. While one spouse “holds down the fort,” the other is free to take care of personal tasks and vice-versa.
Couples Foster Stronger Trust and Communication
Trust is a cornerstone of any successful business partnership, but it can be particularly critical in franchising. On a daily basis, franchisees are required to make important decisions that impact revenue, employees, and customer satisfaction. And when more than one owner is involved, factors such as clear communication and trust are essential. This is where married couples have an advantage, as they can fall back and rely on their history of shared experiences, especially as it pertains to certain communication patterns and an understanding of one another’s typical responses to stress, conflict resolution, and decision-making. When disagreements do inevitably come up – just as they do in any small business operation – couples who work through them with mutual respect often arrive at a resolution faster than uncommitted business partners. And lastly, the trust forged in marital bonds often helps them achieve a much quicker consensus on important decisions related to hiring/firing, marketing and promotional campaigns, and the need for operational improvements.
Striking an Operational Balance
“You have my back and I’ll have your back.” This quote illustrates the way couples naturally shore up one another’s strengths and weaknesses. And franchising is the perfect proving ground for dividing up the day-to-day duties that go into running a successful operation. When running a franchise operation, it’s quite common for husbands and wives to stake out specific roles – with one spouse focusing on operations and the other managing other responsibilities such as administration, marketing, and financial oversight. Though on a much smaller scale, it’s still indicative of the organizational flowcharts of large-scale companies, where specific job roles and responsibilities are properly apportioned across multiple departments. When these complementary skill sets align with the franchise’s operational framework, the result can be a highly efficient co-leadership team. Franchise sales and development teams understand this dynamic, which is why they readily offer support and encouragement for couples looking to become co-franchisees.
A Shared Commitment to Financial Decisions and Risk Management
Couples who invest in franchise ownership together know they’re taking on a significant financial commitment, consisting of initial franchise fees, equipment, leasing agreements, build-out costs, and working capital. In many cases, they may even be putting up their life savings. But because married couples usually share the responsibility of managing the household finances, they often approach these investment decisions with greater transparency and collaboration – ensuring their plans align with their future financial strategy and eventual retirement plans. It’s this kind of shared accountability that lends itself to more stable and disciplined financial decisions.
What the Data and Statistics Have to Say…
Is co-ownership of a franchise operation between married couples a rising trend? The evidence appears to support the notion. Findings from a survey/study conducted by Franchise Ventures found that nearly two-thirds of all prospective franchise owners are married. And while we early noted that somewhere between 17-15% of franchise operations are co-owned and operated by a husband-wife team, more than 80% of franchise buyers consulted their spouse prior to signing an agreement. It’s also widely known among the industry that Millennials represent the largest demographic share of current franchise buyers – and studies have suggested that up to 35-40% of these new owners are married and intend to co-run the business. Lastly, franchise brands increasingly report strong performance among husband-and-wife ownership teams, some of which are often among their highest performing franchisees. The evidence here seems to suggest that married couples who co-own and operate a franchise is indeed a rising trend.
As the world continues to become a more complicated place and the speed of technology requires a continual effort to stay up to date on trends, couples are seemingly positioned for mutual success. Couples who make a concerted effort to make their marriages work often enjoy the same success in making their businesses work. This is because many couples view their shared commitment to business success as an extension of their marital commitment – an opportunity to run a shared enterprise that balances their long-term financial and lifestyle goals.
Considering the benefits from all the pros we’ve covered, there will always be cons as well. Owning and operating a business together isn’t without its challenges, but the innate strengths married couples bring to the equation – including trust, good communication skills, and a willingness to sacrifice for one another – often position them for future success. Thus, it’s easy to conclude that, in an entrepreneurial landscape where stability, resilience, and collaboration play a vital role in achieving eventual success, married couples are uniquely equipped – and positioned – to thrive as franchise owners.
About the Author
Blake Martin is the owner of FranNet of The Heartland, a franchise brokerage, sales, and consulting firm that provides coaching and consultation for entrepreneurs and aspiring small business owners. He’s a Certified Franchise Executive (CFE) and a graduate of the University of Michigan’s Psychology Program. During his two decades in the franchising industry, Blake has provided practical advice in building franchise systems from the ground up, while helping hundreds of entrepreneurial clients achieve their dream of business ownership. He can be reached at bmartin@frannet.com.
