How to Decide If You Should Open a Franchise With a Spouse

If you're married and thinking of opening a franchise, your spouse might seem like the obvious choice of a partner. However, mixing relationships and business can be surprisingly tricky. Before you decide to open a franchise with your spouse, consider the pros and cons carefully. By knowing the pros and cons specific to you, you can research your options and make the best decision for you and your spouse.
Pro: You Get Tax Benefits
Operating a business with your spouse has quite a few tax perks. If you and your spouse wholly own your franchise, you have fewer documents to file, yet you both get credit for Social Security and Medicare. Overall, this reduces your tax burden while also simplifying things for you.
Con: Emotions Can Get In the Way
While it might sound like a blast to work with your spouse, don't forget that emotions can complicate business matters. The most dramatic issues happen when franchise owners divorce and then have to navigate the process of still working together. However, even little things, like not wanting to turn down a bad business idea because you hate saying no to your spouse, can lead to problems in the long run.
Pro: Your Finances Get a Lot Easier
Setting up a franchise without your spouse can be a challenge. There are all sorts of additional legal documents you have to file to keep your spouse from automatically owning a share of your business, and you have to be very careful not to use joint money for your franchise. If your spouse is an equal franchise owner, you can skip many of these steps and entirely focus on running your franchise.
Con: Worse Work-Life Balance
When your spouse is your business partner, it can often feel like the workday never ends. Matters that you would usually wait until a business meeting to bring up might become things you discuss over dinner at night. Though some people find it enjoyable to combine different parts of their lives like this, it can also lead to stress because you never have time off work. If you're concerned about this becoming a problem, it can be necessary to set boundaries.
Pro: You Have a Business Partner You Know and Trust
As long as you and your spouse have a great relationship, working with them can be very enjoyable. Unlike a regular business partner, you'll know almost everything about them and have a lot of mutual goals in common. This can make navigating the world of running a franchise much easier. Not only do you get to spend more time with your favorite person, but you can rely on them in a way that you cannot rely on a stranger.
Ultimately, there's no definitive rule on whether or not your spouse should be a part of your franchise. It all comes down to your personality and unique business goals. For best results, carefully consider all possible outcomes before deciding.