WHEN Charles Shin graduated from business school in 2000, he already harboured the dream: Drop his savings in a franchise, become his own boss, then relax and watch the revenue accumulate.

Aspiration is now reality at Shin’s Caboodle Cartridge store in San Diego, even if the former Defence Department consultant is now putting in 50-hour to 60-hour workweeks to make the new enterprise soar.

“I wanted to pursue my entrepreneurial spirit, and that’s what I’m doing,” said Shin, who is averaging between 10 and 15 walk-in customers daily, looking to buy replacement printer cartridges at the shop.

This may be the golden age of franchising, as a growing number of workers are jumping off the 9-to-5 clock in a time of economic uncertainty to open their own branded sandwich and hair care establishments, with the help of established franchise parent companies.

The concept, which generated more than $1.5 trillion last year, is at a record level of popularity, with more than 767,000 home-based and storefront businesses in operation – fully one-third of them in the fast-food and restaurant segment.

Franchising revenue is up by more than 25 per cent in the past 10 years, according to the International Franchise Association.

Wannabe members of the self-employed are being lured by such franchising benefits as gaining the marketing prowess of the franchiser, while also securing the right to hang the company’s instantly recognisable logo on the storefront.

The price, apparently, is also right: from as low as $5,000 for a home-based carpet-cleaning business, to between $100,000 and $250,000 for the typical weight-loss shop or vitamin supplement store, and beyond.

Leading the franchise pack are such ubiquitous companies as McDonald’s, with about 30,300 US and international units; Yum! Brands’ KFC, Pizza Hut and Taco Bell stores, with 29,300 locations; 7-Eleven, with 28,200; Subway, with 21,000; and Burger King, with 11,223.

But there are also dozens of other fledgling franchises trying to pick off market share from the giants, among them such relatively unknown brands as Garlic Jim’s Gourmet Pizza, The Extreme Pita and the Spicy Pickle.

“When the economy is in turmoil, people look at a number of different employment options,” said Terry Hill, an International Franchise Association spokesman. “Even if people have a secure job, they’re always looking to the future.”

Just how profitable these small businesses are is a topic of debate in the franchise industry.

Analysts estimate that, on average, about one-third of franchisees make money, one-third break even and one-third lose money, although there is only a 10 per cent turnover, or transfer rate within the industry – about the same as non-branded small businesses.

“A lot of people who go into franchises end up owning a job, not a business,” said George Whalin, president of Retail Management Consultants in San Marcos, California.

However, Gallup surveys and other polls conducted over the years have found that more than 90 per cent of franchisees consider their businesses to be successful, or somewhat successful.

Over the years, franchisees with such companies as KFC and Taco Bell have complained that the companies were dodging territorial agreements by opening kiosks in airports and convenience stores near their shops, and distributing brand-name products to supermarket chains.

“Some franchisers have terrible businesses, and saddle franchisees with terrible contracts,” said Robert Purvin, president of the San Diego-based American Association of Franchisees and Dealers.

Purvin, the author of “The Franchise Fraud,” said potential franchisees should perform deep due diligence before signing on the franchiser’s dotted line, including talking to business people who already own stores in the chain.

Among his other tips:

. Avoid the franchiser with a large number of company-owned stores, or who distributes products though other channels such as discount stores.

. Study the franchiser’s business plan and marketing system to ensure a complete training programme and overall franchisee support.

. Only consider franchisers that divulge earnings and sales projections, and who demonstrate an attractive return on investment.