Why Selling a Franchise is Difficult
In the past, would-be entrepreneurs have taken the plunge, minus some of the risk, by opting to buy a franchise. In this manner, there is already a plan in place for how the business will run, lots of support, and likely a strong marketing plan. This support structure helps to make franchising somewhat less challenging for someone who wants to start their own business, and is a big part of why the franchise industry is increasingly becoming the business model of choice. However, trends are changing, and younger people especially, are ignoring these opportunities and creating their own businesses from the ground floor.
Why are millennials shunning franchise operations?
Millennials lived through some harrowing financial times and likely are not as well off financially as the generation before them; with less confidence in the economy, they favour stability and control. In fact, in a poll by ZenithOptimedia of 5,800 people aged 18 to 34, in ten different countries, millennials overwhelmingly say they do not want a boss hovering, and they fully intend to find their passion, and make it their life's work.
This generation is not afraid to strike out on their own; they are mobile, social fanatics with a wide network to taping for help with anything and everything. An Intuit study says that 25 percent of Millennial entrepreneurs had never held a "real" job before opening their business. Compare that number to entrepreneurs in the Baby Boomer generation, aged 52-70, at just 9 percent, and a clear divide is easy to see.
How to engage millennials in your franchise offers
While no one is saying that this will be an easy task, there are some franchise operators rethinking how they do things and becoming more successful in engaging millennials. Since millennials will be 75 percent of the workforce by the year 2025, this is crucial. An American burger chain has targeted millennials in their franchise campaigns by lowering the barriers to entry, and really listening to existing millennial operator's issues and suggestions. Again, allowing them to have greater control over their destiny seems one of the keys.
Here are a few notes about millennials and franchise businesses that might help:
- Focus on the support structure in place and its value for the success of the business, while also noting you encourage flexibility and individuality.
- Have millennials be a part of setting up the franchise programs, and a part of the franchise sales team. They know what other millennials want and how to approach them.
- Allow millennials to have a say in the operations of the business, Franchise Advisory Councils, territory meetings, etc., as inflexibility is one of their complete turn-offs. And quite honestly, they have some amazing ideas!
For further information on any aspect of franchising, contact us today! We'd be happy to assist with any challenges you might be experiencing.