Why The Entrepreneurs Of The Future Are Flocking To Franchising
YouGov recently conducted a survey of 17-25 year olds about their career goals, and it’s clear that the next generation of business professionals are asking themselves the same few questions:
*What career offers me financial security?
*Which type of job affords me the greatest flexibility and balance?
*How can my work make a positive impact on the broader world?
*Can the organization I become part of be one that values diversity and belonging?
If you get into franchising, the answer is a resounding yes!
In our last post, we destigmatized franchising for the younger folks. Now let’s dive into detail as to why this career path checks the critical boxes of that same generation of entrepreneurs.
Why Money Still Matters
Considering this generation came of age during the Great Recession following the 2008 financial crisis, money is naturally the biggest concern.
I was reading about Generation Z and flashed back to buying my first home. I closed on a condo when I was 28 years old and felt like a legit, successful adult.
Six months later, the global economy collapsed. Whoops. I was afraid to even look at my mortgage statement and property value for the next decade.
Do you think that experience scared me straight? You bet.
I began a career transition a few years later from working freelance to joining an incredible team that supports me every step of the way.
Franchising can do the same for you. If you were traumatized by the economic shifts over the last decade like I was, consider a career that has more stability than depending on the whims of the fickle economy. Franchisors are masters at masters at helping their franchisees feel supported.
Flexibility Is (Still) King
Pew Research utilized a sample of job applications started on Glassdoor between October 1, 2018 and January 11, 2019 to look at the employers, metros and occupations that Gen Z and millennial job seekers are applying to in the U.S.
The data shows that “flexible hours” is among the common keywords used by Gen Z to describe the pros of working for their employers.
Sure enough, franchisees often share the same words when talking about their career. Many franchisees pick business models that jive with their lifestyle, in terms of hours, work shifts, weekends and nights, and so on. Depending on what brand you match with, there’s no reason you can’t circumvent the 9-5 grind and find a schedule that works best for you.
Everyone from GlassDoctor to The Dentist’s Choice to Wall Beds N More highlight their franchisees’ flexibility, and they’re not the only ones! Find the franchise opportunity that works with you, and work life balance won’t be fantasy.
The Future of Franchise Ownership Is
Here’s one last piece of data that proves the next generation of entrepreneurs is looking towards franchising as a viable career path.
Franchise Insights recently showed that for the first time in history, more Millennials are seeking franchise ownership than Baby Boomers. See the graph below, and read their article for more information:
As a business professional of tomorrow, it’s clear that you are franchise ready. You’ll be able to bring the technological acumen, high ambition, tolerance for risk and world changing energy that every franchisor needs.
What’s more, if you’re socially oriented and looking to have a positive impact on the world, then your innovative ideas are going to be welcomed by franchise brands hoping to make their mark.
Scott Ginsberg is Head of Content at FranchiseHelp. He's a member of Generation X, since he still writes physical checks.
How to Fund Your Franchise Acquisition
Even if you have all of the required start-up capital sitting in your bank account, and even if you have mentally prepared to invest a considerable sum into a franchise, you may be wary of risking your very bottom dollar for the new venture. There are alternatives, including raising debt or equity funding, but both of these options come with a set of benefits and drawbacks that you'll need to weigh carefully before committing to any particular path.
How to Perform Meaningful Due Diligence When Investigating a New Franchise Opportunity
Before entering into a franchise relationship, it is absolutely crucial for prospective franchisees to thoroughly investigate their proposed franchise opportunities.
How Do You Pay for a Franchise?
Whether you’re purchasing a whopper from Burger King or joining the Burger King franchise system, the old mantra holds true: there’s no such thing as a free lunch. When you first get started running a franchise you need to pay a fee to allow you to enter into that franchise. These fees are the largest fees that you will normally pay a franchisor and typically range between $5,000 and $1,000,000 depending on the franchise. The franchisor charges this fee as a way to recoup the costs of expanding the franchise and to continue to grow. From a franchisee perspective, this is a major outlay and can take a long time to make back, but is a necessary step. Aspiring business owners must understand how much capital is available to them so they can ascertain how much they can afford. The cash you have at your disposal is known as liquidity, and there are numerous ways to increase your liquidity above the balance in your bank account. As a result, many people don’t realize how much capital they actually can use for investments, like launching a franchise branch. We’ll run through some of those methods below.
