If you think you’re seeing more young people at the helm of local franchises, you’re not going crazy. Canada has seen a notable uptick in millennials who want to become franchisees in recent years.
It should be no surprise; franchising is an appealing alternative to the standard 9-to-5 job. And while past generations might work a few years (or decades) for someone else before starting a business, millennials are impatient and ready to start entrepreneurship right away. Franchising employs more than a million Canadians and generates over $68 billion a year . Why wouldn’t an entrepreneurial self-starter consider franchising as a great business opportunity?
The Largest Entrepreneurial Demographic Ever
Today’s millennials (those born between 1980 and 2000) have the largest entrepreneurial drive of any age group ever. They’re not interested in working for someone else, and yearn for the creativity that comes with owning their own business.
In 2016, the Canadian Franchise Association saw 34% of all franchise inquiries coming from 18-35-year-olds, the largest cohort of prospective franchisees. This is indicative of a major trend in the industry.
Franchises are Reaching Out
We’re starting to see more franchises realizing the benefit of attracting a younger, more tech-savvy franchisee. A & W , as an example, recently launched a program with the aim to enroll 25 millennial owner-operators by 2020, and significantly reduced the initial investment required to facilitate this goal. Additional perks to attract younger franchisees include a structured training program and A & W paying most of the costs of building a physical location.
We expect that more franchisors will begin to offer similar incentives and programs to attract millennials.
Top Categories for Millennial Franchisees
While you’ll find millennials running franchises in every category, the two that are the most popular at the moment are mobile and home-based franchises . Because these two categories tend to have lower initial investment requirements as well as ongoing overhead costs, they are appealing to would-be business owners who don’t have the capital (or desire) to lay out a million dollars or more to buy a franchise.
Both home-based and mobile franchises require different skills to market than brick-and-mortar businesses, and millennials tend to have the marketing and tech-savviness to spread the word about their businesses
As franchising continues to see positive growth and profitability, expect to see more younger franchisees at the helm.
Susan Guillory is the President of Egg Marketing & Communications, a marketing firm specializing in content writing and social media management. She’s written three business books, including How to Get More Customers With Press Releases, and frequently blogs about small business and marketing on sites including Forbes, AllBusiness, The Marketing Eggspert Blog, and Tweak Your Biz. Follow her on Twitter @eggmarketing.