Franchise as Retirement Income

scaredofdebt

Hi,

I am due to retire in a couple of years (aged 55) and am looking at income ideas.

Annuities are pitiful, return of under 3% which won't be enough to retire on, I would need nearer 10%.

Other ideas are property (buy to let or renovation) and share dividends, but 10% on those isn't easily achievable and risky.

I am not risk averse and would have around £200k to invest after tax.

So, what are the best franchises to consider?

I have looked at Subway but they are suggesting I need £80k - £250k to invest, I need more specific figures than that really. I have heard stories of people earning £50k a year from one Subway with about 10 hours a week of "working" time.

I am not averse to hard work but don't want a full time job, happy to work part time though.

So, anyone had good experience of a franchise?

Thanks,

DCFC79

Probably something you have thought of but consider which franchises would give you the right support, not much point in starting 1 where you don't get the support.

paddyrg

£50k for 10 hours a week. Hmmm. By any chance did you hear that story from someone trying to sell a franchise? Do you know what they included and excluded from those figures? Anecdotes about business returns are incredibly unreliable in truth, and they may have meant £50k profit before corporation tax, for instance. And the franchisor may have had years of experience in the brand and their ways, and already owned the freehold of the retail space. All just supposition, but there's the potential for a lot of missing important information.

What's your current sector? Could you go freelance now so by retirement time you're ahead of the basic learning you have to do (paying and managing people, recruiting and keeping staff, theft and shrinkage, deciding opening hours, training, etc). I wouldn't be expecting a 25% yield for 10 hours without every single penny of your £200k being at risk (wrong location, etc). I know savings rates are absolutely hosed at the moment thanks to recent events, but a franchise is still a big chunk of risk, even if you're well supported.

jonesMUFCforever

Get a paid part time job to supplement your pension - IMO do not risk your pension pot on something which could go horribly wrong especially if you are only looking to work part time.