Like many things since the 1990s, franchising has come a long way. Now, this investment isn’t just about buying a business in a box anymore. It's a strategic partnership and launchpad for scalable growth within a proven framework. We’re a generation known for disrupting norms, seeking purpose beyond profit, and using technology to its fullest.
We’re past the days of side hustles as income boosters. Today, we’re building legacies. Millennials are increasingly drawn to franchising for long-term wealth creation because of the blend of entrepreneurial freedom with established systems.
However, franchising isn’t just about owning a business; it’s about strategically using a brand's equity and operational efficiencies to rapidly penetrate markets while also building a business that reflects our values.
Let’s look closer at what that means for you as you consider whether to start a franchise as a Millennial.
Hottest Hot & Trending Franchises
Brightway Insurance
Start a Brightway franchise today and unlock your true earning potential. Brightway produces winning outcomes for franchisees and their customers by offering access to customized coverage solutions with full support.
Woof Gang Bakery & Grooming
With more than 200 locations open or under development, Woof Gang offers best in class grooming, and a unique retail experience; our gourmet treats are made with love, and we just offer the best quality pet food. Each location is a committed to the happiness, well-being and health of pets.
Paul Davis Restoration
Join North America’s #1 leading insurance restoration network. Year-round demand in a booming industry!
Understanding Market Dynamics
Before you can find a franchise, you must feel comfortable in the market in which you’re starting the business. Researching the market dynamics in your area isn’t just about crunching numbers; it’s about understanding the unit economics, the profitability potential, and the long-term viability of the franchise model. This type of research can be divided into three core areas to give you a complete picture of the current franchise dynamics—the franchise itself, the market you’d be entering, and the business landscape overall.
The Franchise. Scrutinize the Franchise Disclosure Document (FDD). Traditionally, this document is used as a legal formality. Still, potential franchisees can also use it as a strategic business tool, revealing crucial insights into the franchisor's financial health and operational performance.
The Market. Gone are the days of relying solely on gut feelings. In today’s world, you’re better equipped to be data-driven. Bonus: A wealth of information at your fingertips lets you analyze market trends, conduct competitive analyses, and develop comprehensive financial forecasts.
The Landscape. In addition to the market and franchise financial health, it’s important to examine the rapidly evolving business landscape. Technological advancements, shifting consumer behaviors, and the ever-present gig economy demand adaptability.
When considering these three areas, ask yourself the following:
- How is the franchisor trying to stay ahead of the curve?
- What investments are being made in research and development?
- How are they integrating cutting-edge technology to enhance customer experience and streamline operations?
The Franchise Community
With a solid foundation for the market you’re entering into and the franchises you are considering, it’s time to dig deeper into the mix to truly feel comfortable that franchise ownership is the right path for you.
One area you’ll want to analyze is the community. Millennials are excellent at collaboration, networking, and support. With that need comes a desire to understand questions, such as:
- How strong is the franchisee network?
- What kind of ongoing training and mentorship is provided?
- How does the franchisor facilitate communication and collaboration among franchisees? Because a strong support system isn’t just a nice-to-have; it’s a critical part of success.
Your Legacy
You’ll also want to look closer at the long game. Franchise ownership isn’t just about you. It’s about your family and what you’re creating for your kids. Looking at these questions can help you understand whether the franchises you’re considering will answer that call:
- What’s the franchisor’s vision for the brand?
- What opportunities are available for multi-unit expansion and growth?
- What are the potential exit strategies?
Remember, this isn’t a job you’re getting. It’s a path you’re forging for your family and community. Understanding the ins and outs of where the franchise is heading can help you make the best choice for you.
Brand Development and You
Finally, remember that franchising is a partnership. It’s a collaboration. It’s about using your skills and the franchisor’s resources to build a thriving business. It’s about building a business that aligns with your values, contributes to your community, and creates lasting value.
To that end, you must also understand your role in brand development.
- How can you, as a franchisee, contribute to innovation and growth?
- What opportunities exist to provide feedback and input?
- How much local marketing control do we keep?
You’re not a passive investor. You’re an active participant in the brand’s evolution.
Are you ready to leap? Thorough research and strategic thinking are paramount. Explore industry-specific franchise associations, connect with franchise investment groups, and consider executive franchise training programs. This isn’t just a decision; it’s a strategic move. Pursue franchising as a partnership and build an enterprise that generates wealth and reflects your vision for the future.
~~
Kimberly Crossland is the founder of Roadpreneur and Cruisin' + Campfires, two companies designed to keep families together and living in freedom through travel and entrepreneurship. The goal of both businesses is to inspire meaningful change through the power of a strategic, thoughtful approach to life and business. In her free time, you can find her looking for a new adventure together with her two boys.