The youngest working-age generation is beginning to make waves in the franchising industry.
While Millennials still lead in adopting franchises, Generation Z is increasingly considering franchise ownership as a viable career option instead of following traditional career paths.
If you’re a young person uncertain about your future, franchising could be an ideal opportunity. Let’s explore this further.
Exploring Gen Z’s Role in Franchising: By the Numbers and Trends
Many in Generation Z aspire to be entrepreneurs.
Generation Z, made up of those born after 1996, is gradually making a significant impact on the franchising industry. They are known for their distinct preferences, values, and entrepreneurial spirit.
According to the Pew Research Center, Generation Z is gaining prominence as they reach voting age, bringing with them substantial economic and political influence. Having grown up during the Great Recession and the COVID-19 pandemic, this generation has demonstrated resilience and adaptability.
A significant 62% of Gen Z members express interest in starting their own businesses. They are leveraging their high rates of college education, technological expertise, and diverse backgrounds. Their entrepreneurial drive is also evident in their strong presence on social media platforms, with nearly 85% discovering new products through these channels, and 53% making purchases via mobile devices in the past six months.
Tech-Savvy and Socially Conscious
The franchising industry sees Gen Z’s entrepreneurial mindset as a perfect match. Franchising allows them to be their own bosses while aligning with their values of social responsibility, technological advancement, and work-life balance.
Franchisors are increasingly targeting this generation by using social media, particularly TikTok, where about 60% of users belong to Gen Z. This strategy aims to appeal to their preference for engaging, short-form content, recognizing that 65% of Gen Z entrepreneurs are interested in owning a business.
Fresh Talent is Needed in the Franchising Industry
The franchising industry is changing, with about 40% of the 12 million small businesses and franchises in the U.S. owned by baby boomers who are retiring rapidly. This shift creates a significant opportunity for Gen Z, as franchisors are now more open to innovative recruitment strategies and offering more affordable franchising opportunities to meet the entrepreneurial ambitions and financial realities of younger generations.
To encourage this trend, franchisors should consider Gen Z’s preferences for technology, social media, and balanced lifestyles when designing their recruitment and operational models. This approach can make franchising an attractive career path for this highly entrepreneurial generation.
Why Gen Z Values Align with Franchise Ownership
Gen Z’s values can align well with becoming a franchise owner in several ways:
– Entrepreneurial Spirit: Many in Gen Z have an entrepreneurial mindset, valuing independence, creativity, and the ability to shape their own futures. Franchise ownership offers a way to embrace this spirit with the support and structure of an established brand.
– Social Responsibility: Gen Z often prioritizes social and environmental issues. They are more likely to support businesses that focus on sustainability, diversity, and ethical practices. Franchise ownership provides an opportunity to partner with brands that share these values and contribute positively to their communities.
– Tech-Savviness: Growing up in the digital age, Gen Z is highly tech-savvy. This skill is useful in managing various aspects of a franchise, such as online marketing, social media engagement, and leveraging technology for efficiency.
– Flexibility and Work-Life Balance: While Gen Z is ambitious, they also value flexibility and work-life balance. Franchise ownership offers autonomy in scheduling and operations, allowing them to create a lifestyle that suits their needs and preferences.
– Collaborative Mindset: Gen Z values collaboration and teamwork. Many franchise models encourage collaboration with other franchise owners, sharing best practices, and learning from each other.
– Adaptability: In a fast-changing business environment, adaptability is essential. Gen Z has grown up in a world of constant technological and cultural shifts, making them naturally adaptable. This trait is an asset in navigating the challenges and opportunities of franchise ownership.
Overall, while individual values and preferences may vary, many aspects of franchise ownership resonate with Generation Z’s aspirations and priorities, making it an appealing path for those with an entrepreneurial mindset.
Advantages of Franchising for Gen Z
For Generation Z individuals considering franchise ownership, several benefits may be particularly appealing:
– Established Brand Recognition: Franchises usually come with strong brand recognition. For Gen Z, who are just beginning their entrepreneurial journey, being associated with a well-known brand can build credibility and trust with consumers.
– Proven Business Model: Franchises offer a proven business model, reducing the risk compared to starting a business from scratch. This is comforting for Gen Z individuals, especially those new to entrepreneurship.
– Training and Support: Franchise owners receive training and ongoing support from the franchisor. This is valuable for Gen Z, who may lack experience in business management. The support often includes assistance with site selection, marketing strategies, operational guidance, and more.
– Access to Financing Options: Franchises often have established relationships with lenders familiar with the franchise model, making it easier for Gen Z individuals to secure funding to start their businesses.
– Networking Opportunities: Franchise ownership offers networking opportunities with other franchisees within the same brand. Gen Z individuals can learn from the experiences of others, share best practices, and build a supportive community of fellow business owners.
– Flexibility and Autonomy: While franchises operate within a set framework, owners still have some flexibility and autonomy in managing their business. This is appealing to Gen Z, who value independence and decision-making power.
– Potential for Growth: Many franchises offer opportunities for growth, such as opening additional locations or expanding into new markets. For ambitious Gen Z entrepreneurs, the potential for growth within a franchise system is motivating and rewarding.
– Adaptability to Changing Markets: Franchises often have the resources and infrastructure to adapt to changing market trends and consumer preferences. This is advantageous for Gen Z, who are entering the business world during a time of rapid technological and cultural change.
The benefits of franchising are clear, regardless of age. It’s all about finding the right fit for yourself and putting in the necessary effort!
Fibrenew is Values-Driven and Always Innovating
Success at Fibrenew hinges on having a positive impact on the environment, the community, and the brand. If you’re tech-savvy, motivated, and ready to work hard, we want to hear from you.
These values drive our success at Fibrenew, so if a career with unlimited earning potential that also protects the planet and community sounds like a dream come true, get in touch with us. Stay tuned!
