The franchise landscape has seen significant changes in recent years, with new entrepreneurs getting younger and more diverse than ever. This major shift may not be unconnected to the “Great Resignation” that’s currently going on. During the covid19 period, a lot of women left their job to cater to their kids when schools shut down and virtual learning became an essential tool for education. The majority of corporate professionals also felt as if they did not have control over their situation as companies were laying off workers and government restrictions set in. As these female professionals ponder on the next steps to take, they and other experts saw this as an opportunity to transition to a more rewarding, flexible career where they have greater control over their destinies and futures.
According to a Bureau of Labor Statistics report, over 47 million Americans willingly resigned from their jobs in 2021. Many of these employees – particularly young people — left their jobs in search of better opportunities or working conditions. And one of the better prospects for this younger generation is owning a franchise.
And this has become apparent in the last few years. While a 2017 article shows that the majority of franchisees were aged 45 to 54 years, new data from Zippia.com indicates that the mean age of franchise owners has reduced to 44 years.
In the past, franchise inquiries were mostly from owners who were near the end of their careers and those transitioning to business ownership in the middle of their careers. But the majority of inquiries nowadays are made by people in their late thirties or early forties. Plus, franchise companies have started to receive applications from professionals with diverse backgrounds, including education, healthcare, technology, event planning, and more, who are trying to become their own bosses. This paradigm shift requires transforming the franchise business model and the way we need to attract new demographics of franchisees.
Millenials’ values are drawing them to franchising
Reports show that millennials are more interested in becoming franchisees than baby boomers and are only behind Generation X when it comes to looking for franchise ownership opportunities. For this reason, franchise companies need to look for new ways to draw in the younger generation by concentrating on the ideals and benefits that matter most to these people. And thanks to the covid 19 pandemic and the Great Resignation, a lot of people in this age group are looking for opportunities to have a flexible income and a better work-life balance.
Many of today’s childcare franchisees began to consider transitioning from their various careers and started planning for their retirement about five years ago. Nowadays, most franchise inquiries have been coming from people who are young in their careers, have little kids, desire flexibility, and want to make an impact.
Franchising is an excellent way to adapt your brand to new markets, taking advantage of the resources of multiple businesses to make a huge local impact. A 2016 article in Gallup’s business journal claimed that millennials are searching for ways to make an impact on their immediate communities and the franchise business model gives them the perfect opportunity to make a difference. Having benefits that help these aspirations in place is crucial to draw millennials into franchising. And one way to achieve this is by offering financial aid to support them through difficult times.
We need to change the franchise model for millennials
Franchise companies have to look at their corporate values and policies and use the insights gained about millennials to focus support on the priorities of this group of people. Some of the things organizations can do to make franchising a more attractive option for millennials include concentrating on its flexibility advantages, latest technology, and opportunity for business ownership and a huge profit within a few years.
Franchisors need to stress their business’s impact on their community. Use design and technology to make the company appealing to consumers with applications, messaging tools, and more. Go to places where millennials spend most of their time online, such as Snapchat, Instagram, and TikTok. Help these people meet with those who can help them realize their vision. When all of these are combined together, it will make the franchise business model more desirable to the newest group of prospective franchisees.
As the recent trend of mass resignation continues to change the corporate landscape, the franchising industry needs to be ready to welcome and help a new and diverse group of franchisees grow. Franchisors can tap into this new generation of franchise owners by setting up their companies to satisfy millennials’ needs and wants, such as work-life balance, attractive employee benefits, and community impact.
