Get an MBA or Buy a Franchise?

Usually, there are four determining factors: cost, time involved, return on investment and job market. But, now there's a fifth consideration: get an MBA or spend the same amount of money to purchase a franchise?

To pay for an MBA, most people work part-time for low wages while enrolled, deplete their personal or parents' savings, and are left in debt with student loans. However, going the franchise route can provide a quick way to a lifetime of income, often exceeding the income of those with MBAs.

Getting an MBA does not guarantee lucrative employment offers or even salary increases, especially given today's job market. In a bad economy, people realize their job instability. As a result, franchise leads increase sharply as people seek the security of a reliable turnkey business.

"Rather than spending $95,000 and two years getting an MBA, more and more people are choosing to spend the same amount of money to open a franchise," said Nick Friedman, president of College Hunks Hauling Junk. "And, in less than two years they own a cash producing asset."

Friedman and his business partner, Omar Soliman, brought a clean-cut image to junk removal by recruiting college students to haul away customers' unwanted items. What started as a temporary summer gig in 2005 has grown into a multi-truck, multi-million dollar franchise operation with locations across the country.

"Franchising allows people to go into business for themselves but not by themselves," Friedman said. "It offers a much more secure method of entrepreneurship."

Studies show that franchises have a success rate of 90 percent compared to only 15 percent for businesses started from the ground up. The increased probability of success usually far outweighs any initial franchise fee and nominal monthly royalties.

"Just like college, parents can make an investment in their child's future by helping pay for a franchise," said Friedman. "Several of our franchise owners are recent college graduates, which is not the typical franchise owner profile. Other franchisees include a former stay-at-home mom and a Web developer."

New franchisees receive five days of training at ‘Junk University' in Tampa to learn every aspect of the business. The company focuses on the power of branding, marketing, community involvement and recycling efforts.