In today's tough economic climate a significant number of unemployed executives and managers are investigating franchise opportunities as an alternative to finding another job. Truth be told, most of these former executives would probably rather have their old jobs back, or at least something new that pays the same as their old position and has more or less the same responsibilities. They are turning to franchising because it is becoming more and more apparent that finding a good job might not happen any time soon.

This leads to a great question for these folks to consider: What is the difference between getting a job and owning a franchise? There are definitely advantages and disadvantages to either choice. The right answer varies from person to person, based on what they want to achieve in life and how they feel about factors like risks and rewards. Let's start by taking a good hard look at the status of both the job market and the franchise industry.

The job market today is a mess. Not only is unemployment high, but the few companies that are starting to hire are taking advantage of the marketplace by raising qualification requirements and slashing starting salaries for new positions. They still get willing and qualified applicants lining up at the door, so why wouldn't they do this? Many unemployed executives have realized that the job they used to simply doesn't exist any more at that salary they were paid, and there's no telling when or even if it will return. This dynamic is causing a phenomenon of "under-employment" that may take years to correct itself. It's not a pretty picture for the job seeker.

The franchising industry is also suffering in today's market. Many franchise concepts have found that the recession cuts deeply into their revenue and margins. In many sectors, only the strong will survive the wait for normal economic times, which means that a prospective buyer has to be even more careful than usual in selecting the right opportunity. The disintegration of the credit markets has made franchise startup lending a thing of the past, so the new franchisee will likely have to look to other resources for the capital to start a business. Most unemployed executives don't have large reserves, so they must find a franchise that starts earning a positive income as quickly as possible. All of these factors make finding a great franchise opportunity potentially more challenging than it was in the past.

Even though the current marketplace isn't great in either arena, there are good opportunities for the careful seeker on both fronts. As you evaluate either option, keep in mind these three key areas that differentiate the two:

Income: Both a job and a franchise should provide you with an income. With a job, the income is typically clearly defined; you know what your salary is going to be and how often it is going to be paid to you. There may also be non-fixed income (commissions or bonuses, for example) but that is still usually pretty easy to estimate in advance, so a job provides quite a bit of certainty in relation to income. With a franchise, especially in the short run, your income is far less certain. It is quite common in a business startup to work for some period of time without any fixed income. Though the long-term income prospects may be quite a bit higher in a franchise, you need to make sure you have adequate reserves to live on while you are going through the initial building phase.

Wealth: Having ownership in a business is the classic path to creating wealth. When you build a franchise business you are building an asset that grows in value and can eventually be sold--hopefully for quite a bit of money. This wealth payoff to the franchise owner is on top of the income received during the operation of the business. Owning a franchise involves taking more risk in the beginning, but the reward is that any wealth created through your efforts will accrue to you rather than to someone else (as it does when you have a job). This factor is very important to most people who choose to go the franchise route.

Control: With a job, your control over your work efforts isn't very high. You basically have an employer who tells you what they want you to do and how they want you to do it. If you own a franchise, you are the employer who is telling others what you want done, and you are completely in charge of what you do at work. This fundamental difference is one that is very appealing to some people but uncomfortable or even frightening to others. As you evaluate which option is better for you, this is something you should carefully consider to make sure you go in the direction that best suits your personality.

Is a job or a franchise better? There is no right or wrong answer. It depends on a person's priorities and what they are trying to accomplish in their life. The basic trade-off is pretty simple: A job has more income certainty but owning a franchise has more wealth-creation potential and allows for greater control. Each person needs to determine the balance between these factors that works best for him or her.

By Jeff Elgin, Entrepreneur

According to author and professor Stephen Covey, research shows that trust within businesses is on the decline. "Only 28 percent of employees believe CEOs are a credible source of information," Covey writes in The Business Case for Trust.

When franchise partners don't trust their corporate team, it may take longer to complete projects. Most professionals in the franchise and business world would agree that trust is a vital element for a successful relationship between a franchise system and its franchise partners, whether on an individual level or between the franchisor and its franchise partners as a whole.

In 2009, I dealt with this very set of challenges when I took the CEO position for Fastsigns International Inc., the worldwide franchisor of more than 530 full-service sign and graphic centers.

I entered into this leadership role in one of the worst economic climates in recent history, with a company that was experiencing its first double-digit sales decline. Additionally, a lack of trust had formed between the franchise partners and the corporate team--the franchise partners were distressed and feeling as though their questions and concerns were not being heard. I knew I needed to immediately begin developing rapport and trust among the franchise partners in order to re-establish communication and motivate the company.

Regardless of the economy, every franchisor should be working continuously to improve operations and efficiencies so that franchise partners can maximize their profits. You can no longer take the attitude, "If it ain't broke, don't fix it." Listening to franchise partners is a great way to generate ideas and learn best practices, so we began actively reaching out to franchise partners--not only listening to their concerns, but involving them in corporate decisions. Since their feedback comes from their experiences on the front lines, it provides great value and can teach you a lot about what works and what doesn't.

From there, I worked with the corporate team to employ a strategy of getting back to basics, which included an incentive program, and monthly company meetings for sales updates, program developments and company announcements. This went a long way toward opening the doors of communication, establishing trust and aligning the team on our common goals.

While these changes were a crucial stepping stone, they were just the tip of the iceberg. Tough times require tough measures, and I needed to get down in the trenches with my team. Fastsigns developed four key objectives: improve franchise profitability, drive top-line sales, increase the value of the Fastsigns brand, and increase franchise partner satisfaction.

We took a hands-on approach and reached out on a personal level to the franchise system--not a simple task. I began hosting monthly calls to the entire franchise system in which I provided updates and answered questions. The calls also gave franchise partners an opportunity to voice concerns directly to me. In addition, I embarked on a road tour, meeting face-to-face with as many franchise partners as possible.

The following strategies were implemented to help increase confidence and trust:

Franchise system road tour: One of my first objectives was to initiate a strategy that would put us face-to-face with as many franchise partners as possible. The goal? Re-establish our relationship with them and earn back their trust. As a result, we implemented a five-month, 28-city North American Town Hall Tour, during which I met in person with as many franchise partners as possible to engage in dialogue, share ideas and boost morale. Since then, we have met with more than 380 of our franchise partners in four countries. This strategy created more confidence and built CEO credibility among our franchise partners, while dramatically improving the relationships they have with our corporate support team.
 
Annual conventions: If your franchise system holds an annual convention or meetings within the field throughout the year, take the opportunity to sit down with your franchise partners at these events to discuss how they think things are going within the franchise system. They will give you insight into what programs work well, which ones do not, and any issues that may need to be addressed. Letting them participate in a one-on-one or group discussion demonstrates to them that you are willing to listen and take their advice under consideration.
 
Webinar: If an annual convention is not feasible for your franchise system, another solution is to host a series of ongoing webinars. Technology allows franchise partners to remain in the comfort of their own office or home while still having the ability to speak with you, the franchisor. A webinar is a great way to conduct the same presentation remotely that you would at a convention, but also allow two-way communication for franchise partners to ask questions or express concerns.

This hands-on approach helped rebuild trust and communication with more than 380 Fastsigns franchise partners in four countries, focusing on communicating the company's core values and vision for the future. It is imperative for both our corporate team and network of franchise owners to understand that we share the same vision and goals. The results have paid off with a happier franchise community, and an increase in profits and franchise growth.

Whether your franchise system contains five or 500 franchise partners, as a franchisor, you must listen to your franchise community before you start to implement changes that will affect the entire system. By doing so, you will remind your franchise partners that they play an important role in the decision-making process. Despite tough times, such as the recent economic downturn, it is possible to foster positive emotions in the workplace.

Communication is the most important factor in a triumphant relationship between the franchisor and the franchise partner. Remember that they invested in your concept to help fulfill their entrepreneurial dream and because they strongly believe in your concept's core values. They depend on your support and trust to help them grow and remain passionate about their business. It is important to understand that when they express a concern, you must listen and respond appropriately and with compassion. Better understanding the needs and concerns of your franchise partners will create a relationship full of trust that will lead your concept toward a future of great success.

By Catherine Monson, Women Entrepreneur

The U.S. Census Bureau will announce findings from its 2007 Economic Census Franchise Statistics, the first detailed data showing the economic impact of franchising, during IFA's Public Affairs Conference on Sept. 14. Census Bureau Deputy Director Thomas Mesenbourg will present the findings that represent the influence of franchising across nearly 300 industries for businesses with paid employees. IFA played a significant role in promoting a wider look at franchising across many industries in the U.S. economy and advised the Census Bureau about which industries would likely be important sources of franchising data. The IFA Public Affairs Conference is Sept. 13 to 14 at the JW Marriott in Washington, D.C.

See the IFA for more information.