Millennials are Finding Franchising Success
Millennials are finding franchising success as the franchise ownership demographic is starting to change. The millennial cohort is the generation born between 1980 – 2000 and represents approximately 9.8 million people in Canada.
Millennials are also the most ethnically diverse generation that Canada has ever seen. This diversity contributes to innovative thinking, enhanced creativity, and access to broader networks and relationships. The bulk of immigrants to Canada are millennials because Canada’s immigration point system favours younger applicants.
Statistic: Number of immigrants in Canada in 2017, by age | Statista
Find more statistics at Statista
You may think the typical franchise owner is someone established looking to leave to leave a corporate gig, or a baby boomer with high net worth, but that’s changing. Millennials are finding franchising success and it may just be a perfect fit.
What Millennials Offer to Franchisors
For franchisors, the millennial cohort can provide:
- A solution to retiring baby boomer leaving the franchise system
- Access to an energetic, passionate, educated, and tech-savvy talent pool
- Opportunity to shape owners who will be leading the business.
Millennials value mentorship, expertise, and teamwork. This is invaluable since franchisees succeed when they can tap into training, support, and business know-how.
What Franchisors Offer to Millennials
For millennials, the franchise model provides benefits that include:
- A business framework and set of tools for those who may lack years of business experience
- Strong training programs to develop or enhance business skills to operate a business
- Access to a network of existing franchise owners for support and guidance
- Marketing and other critical expertise from a recognized brand
- Opportunity to jumpstart business and entrepreneurial goals
These combined benefits can reduce the burden of building a new business from scratch, yet still appeal to the entrepreneurial goals of millennials. Millennials could well be the future of the franchise industry.
How to Increase Franchising Success
The franchise industry in Canada has seen double digit growth in recent years and the number of new franchise brands and outlets continue to grow. There are over 78,000 franchise units in Canada, and 4,300 new franchise outlets open each year. With such a broad expanse of franchise brands to select from, here are some things millennials can consider to increase their franchising success:
Search for Brands that Match Skills and Education:
Millennials are highly educated so take advantage of your academic background to increase your franchising success. For example, educators may want to pursue franchise categories related to educational products and services.
Do Your Research:
Millennials are resourceful so put that skill to use and explore franchise categories and potential franchisors. The Franchise Disclosure Document provides extensive information about the franchisor.
Speak to Other Franchise Owners:
The Franchise Disclosure Document provides a list of current franchisees. Arrange to speak with franchisees to find out more information about the franchisor, industry trends, and their franchising experience (both positive and negative) to avoid any surprises.
Explore your Financing Options:
While franchise fees can be expensive and even prohibitive for millennials, franchisors offer a range of investment levels and some may be as low as $10,000. Determine what available cash you may have and look to other financing options that may include:
- Traditional bank loans
- Supplemental financing including friends and family
- Canada Small Business Financing Loan
Millennials are finding franchising success and the mutual benefits that franchisors and millenials offer each other could be a perfect partnership.