Set up shop: franchises offer low-risk business options.

• Author: Haraldsen, Tom

In business, as in life, there are no guarantees. But there are always smart ways to bet. For the victims of the current economic recession, the idea of leaving corporate America behind and finding their own personal piece of the pie has been more enticing than ever. It means having the opportunity to run a business, be your own boss and control your destiny.

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So it comes as no surprise that many people looking to take control of their financial futures are turning to the age-old concept of buying a franchise. And the timing might be perfect.

With financial institutions encouraged to use federal economic stimulus money toward making loans of all varieties, the cash necessary to start a franchise is more readily accessible. You just have to choose one that matches your lifestyle and your passion.

Franchising means buying into an already established business, opening a storefront or territory under the name of that business and operating within the boundaries established by the franchisor. And some of Utah's most successful franchisors, and franchisees, say that if you're stepping out into a business of your own, it's the only way to go.

"There's no way we could have started Winger's without the franchising experience we had gathered from other businesses," says Eric Slaymaker, president of Wingers, USA, Inc. and part owner of the Slaymaker Group. His experience is somewhat unique, as Slaymaker Group is both a franchisor of the 41 Winger's restaurant locations in seven western states, and a franchisee of TGI Friday's restaurants.

"We were able to gain years and years of multiple concept operational experience as a franchisee [with Tony Roma's, Sizzler and Chi Chi's Mexican restaurants]," he says. "When you strike out on your own, the chances of failure are significantly higher than when you are part of a proven concept with lots of resources to draw on. I always tell anyone who asks me about starting a business to take a look first at franchising."

Slaymaker pointed out that franchisors have generally done the experimenting and made all the mistakes with their concepts and, thus, refined the process for operations before they ever roll out the opportunities to potential franchisees. Twenty years ago, the International Franchise Association, a membership organization for the industry, said nine out of 10 independently-owned businesses fail in their first 10 years. During that same time period, 87 to 90 percent of...