Why Are People Rethinking Retirement and Franchising?

Retirement is always on the mind throughout one’s career, as the ideal lifestyle is the goal that many people set as they continue their career ladder. But while the US Government’s 2020-2021 Report on the Economic Welfare of US Households found that 45% of people retire because they reach the normal retirement age, an even greater percentage — 48% — of individuals retire because they want to do something else. .

Burn Training Camp

This entrepreneur may not be the stereotype that the young CEO community celebrates, but franchising offers the older generation the opportunity to achieve their dreams with the confidence that they aren’t wasting their retirement funds. The last few years have upended old ideas about life and work, and people are now also looking at retirement in a new way.

These three franchise stories illustrate why would-be retirees decide to be ambitious rather than settle down.

Scott Passarella, 56 years old

Scott Passarella has spent more than two decades working at Corporate America for blue-chip companies such as Nestle Waters and Pepsicola. But once she hit her 40s, her mentality changed from climbing the career ladder to judging what she wanted. The realization that he had been at Company America for more than half his life made him reflect on the dream he had for himself.

“I have worked at the company for over 25 years and every coworker I have ever met at that age has the same thoughts. And I really think it’s just a reflection of life. Whether they are happy or unhappy in Company America, I think that [of entrepreneurship] just come into play.”

Starting a business is one thing when you are in your twenties with no life experience, but Passarella has an established career and 401k to think about.

However, the thought of turning 80 and not achieving his dream of becoming an entrepreneur in his 50s was a bigger risk he wasn’t willing to take. In the 2016, Passarella channeled her passion for fitness and became a Burn Boot Camp franchisee and opened her first location in Spring Hill, Florida in 2018. Since then, it has thrived and now has a third location in the works.

Franchising support eased Passarella’s transition from a familiar life as a company employee and is one reason why she said she would still start a business with a franchise if she could return.. For him, his age proves how useful experience in business can be.

“Let’s take a look at the founder and CEO of Burn Boot Camp. He is 33 years old. He was way ahead of his time. He’s a visionary, he’s a progressive, he’s an entrepreneur. The man was only a few years ahead of his time,” said Passarella. “But I have more life experience than him. He doesn’t have the life experience I have. I really think it adds value to anything. ”

Related: Our Definitive Ranking for 2022’s Strongest Franchises – 500 Franchises

Jeff Baker, 57 years old

While the pivot to entrepreneurship at an older age can be an emotionally driven journey, it can also be a logical one. According to data from PricewaterhouseCoopers, only 36% of people feel their retirement planning is going according to plan. Bloomin’ Blinds franchisee Jeff Baker is one of those people who started thinking about entrepreneurship in his 40s after realizing that returning to Company America wasn’t always a stable option.

“Frankly, when you get to a certain point in your career, it’s pretty clear that you probably won’t come back to Corporate America. You will not be hired again. So we are all looking for the next chapter. I think that’s why it gets interesting. ”

Baker knew he wasn’t at a financial point where he could “play backgammon for the next 30 years,” so he started looking for the perfect franchise vehicle that would suit his business aspirations. He discovered the home services category with the help of a consultant and found Bloomin’ Blinds in 2020. That year, he decided to launch a franchise in Los Angeles despite having no previous experience in the sector.

“To me, retirement is not what we think about in the Western world — you know, watching gold and sitting around and playing golf and that sort of thing. I thought my retirement was sort of a gradual decline in physical nature and was immediate over the next few years, but running this business and being actively involved in my early seventies,” said Baker.

For others looking to have the same financial freedom in retirement, Baker advises them to look sooner rather than later.

“Everyone in my age group — it’s not uncommon for a change to occur where you are no longer an employee. And it’s an amazing time in one’s life — at least I found — to do something that people often associate with young people fresh out of school,” he said. “I would strongly encourage, even if someone is still at work and they are waiting for the golden watch moment, start thinking about it now and maybe even make that change voluntarily rather than when you are looking for the next one.”

Related: 5 Steps to Financial Freedom

Roger Mellen, 60 years old

Roger Mellen was one of those franchisees who found his way into business ownership when he realized that his savings weren’t enough to sustain his retirement.

“Everyone said, ‘Hey, save a million dollars,’ — which my wife and I did — ‘and you can retire.’ It takes our whole life to save that money. And then we said, ‘Well, it’s not enough to retire,’” he said.

When his wife Julia lost her job due to Covid, they decided to invest their money into the Marco’s Pizza franchise. Both have previous experience to lean on as Roger is an executive chef on a Norwegian cruise line and his wife is a food and beverage director. Roger even owned the restaurant during his first marriage, but since becoming a franchisee two and a half years ago, he’s found that getting a brand name out there is a lot easier with a franchise.

“I’m glad your product is advertised across the country, on TV, people know the product,” he said.

Now Mellen runs four franchises across Florida with business partners. For him, he saw a difference in his business mentality in his 60s compared to running his own restaurant in his 30s.

“The difference is, when you are 35, you have children. So many expenses. I have no children, now they are adults. I have grandchildren,” he said. “I can concentrate on my business. I have nothing to hold me back. ”

Mellen also notes that other parents have signaled interest.

“In fact, you wouldn’t believe how many parents I’ve worked for, where they asked, ‘Hey, how much did it cost to get one?’ So when they see success, they see a great product, they see a great customer. This is a good business to invest in. They saw it for themselves,” he said.

Related: 17 Habits of Self-made Millionaires Who Retire Early