Page 128 - Entrepreneur - USA (January - February 2020)

THE FRANCHISE

assidi Brown wanted her Coolgreens to stand out among the This is why, for many franchise brands, youth recruitment is becoming
nearby restaurant chains in her Dallas suburb. So she began a priority—though it isn’t always easy.
C building a selfie wall, covered with succulents and vines, that To start, young entrepreneurs have different motivations than
would live at the store’s entrance. She promoted the store’s opening with their predecessors. In a poll conducted by the Center for Women and
social media posts featuring the staff playing Jenga. And two days Business at Bentley University, 84 percent of millennials said that mak-
before the official launch, she opened the doors for a fundraising event ing a positive difference in the world was more important than profes-
for low-income residents in the area. sional recognition. They want to make money, sure, but they also want
As a franchisee, Brown is ambitious and innovative. She also believes she to have an impact—which means franchise brands need to think dif-
knows how to draw in young customers because, well, she’s their age. At 28, ferently about their recruitment and what elements of the business will
she represents a generation the franchise industry has struggled to recruit. appeal to younger potential owners.
“Franchise systems are aging,” says Mark Siebert, the founder of iFran- There’s also the question of how to reach them, given their diverse
chise Group and author of The Franchisee Handbook. “As they do, there’s media habits and perceptions of the franchise industry. Rick Grossmann,
a need to replace the older franchisees.” The numbers are stark: The author of Franchise Bible, has found that many young people think
majority of franchisees across the U.S. are between 46 and 65 years old, franchising is limited to restaurants. That’s certainly not the case;
according to FRANdata, a franchise analytics company. But as the indus- Grossmann’s own franchise, Friend of the Family, for example, helps
try ages, it also grows. Roughly 300 companies begin franchising each seniors move and downsize. Still, it’s a perception he’s had to fight against
year. In 2017 alone, 43,500 new franchise units opened up—meaning as he introduces his company to potential younger owners.
demand for new franchisees will only increase. But even if franchises do a good job appealing to the next generation,
And who is frequenting all these new franchises? Increasingly, it’s they should be prepared for some built-in challenges. Younger franchi-
young people. Food is, of course, franchising’s largest category, and mil- sees often lack experience, struggle to come up with money, or simply
lennials spend 23.8 percent of their discretionary budget eating out, don’t understand the industry, says Siebert. So companies committed to
according to data by Bank of America. That’s nearly double what baby recruiting younger franchisees are often compelled to offer programs that
boomers spend, making it increasingly important that franchise brands support professional development, along with robust financing options.
know how to appeal to the next generation of customers. (Grossmann, for instance, has begun offering zero-percent-down busi-

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