Gen Z in Franchising

The youngest consumer generation of working age is taking the franchising industry by storm… kind of.

While Millennials still lead the charge for franchising adoption, Gen Z is looking at franchise ownership as a valid career path in lieu of traditional career direction.

If you’re a young person wondering what to do with your future, then franchising might be a perfect fit. Let’s take a closer look.

A statistical examination of Gen Z in franchising

Let’s take a run at Gen Z in franchising by the numbers and trends.

Many Gen Zers want to be entrepreneurs

Gen Z, characterized by individuals born after 1996, is progressively making its mark in the franchising sector, distinguished by its unique set of preferences, values, and the drive for entrepreneurship.

According to the Pew Research Center, Generation Z is entering the consumer spotlight with significant economic and political power, especially as they become of voting age. This generation, having come of age during and after the Great Recession and amidst the COVID-19 pandemic, has shown resilience and adaptability.

A notable 62% of Gen Zers express an interest in starting their own businesses, leveraging their high college attendance rates, technological savviness, and a diverse background. Their inclination towards entrepreneurship is further evidenced by their significant presence on social media platforms, with nearly 85% discovering new products this way, and 53% having made purchases through mobile devices in the last six months​.

They’re tech-savvy and social

The franchising industry, recognizing the entrepreneurial spirit of Gen Z, sees them as a perfect fit. Franchising offers Gen Z the opportunity to be their own bosses while capitalizing on their characteristics like eco and social responsibility, a drive for technology, and the importance of work-life balance.

With franchisors increasingly seeking to attract this demographic, strategies have shifted towards leveraging social media, particularly platforms like TikTok, where an estimated 60% of users are Gen Zers. This approach aims to tap into the generation’s preference for engaging, short-form content to promote franchising opportunities, acknowledging that 65% of Gen Z entrepreneurs are interested in owning a business​.

The franchising industry needs fresh talent

Moreover, the changing dynamics of the franchising industry, with about 40% of the over 12 million small businesses and franchises in the U.S. owned by baby boomers who are retiring at a rapid pace, underscore the need for fresh entrepreneurial talent.

This scenario presents a significant opportunity for Gen Z, as franchisors are now more than ever, open to exploring innovative recruitment strategies and offering lower-priced franchising opportunities to accommodate the entrepreneurial ambitions and financial realities of younger generations.

Encouraging this trend, franchisors are advised to consider Gen Z’s preferences for technology, social media, and a balanced lifestyle when designing their recruitment and operational models, positioning franchising as an attractive career path for the most entrepreneurial generation yet​.

Gen Z values suit franchising to a tee

Gen Z values can align with the idea of becoming a franchise owner in several ways:

1. Entrepreneurial Spirit: Many members of Gen Z are known for their entrepreneurial mindset. They value independence, creativity, and the ability to shape their own futures. Becoming a franchise owner allows them to tap into this spirit while still having the support and structure of an established brand.
2. Social Responsibility: Gen Z tends to prioritize social and environmental issues. They are more likely to support businesses that demonstrate a commitment to sustainability, diversity, and ethical practices. Franchise ownership can provide an opportunity to align with brands that share these values and contribute positively to their communities.
3. Tech-Savviness: Growing up in the digital age, Gen Z is highly tech-savvy. This can be advantageous in managing various aspects of a franchise business, such as online marketing, social media engagement, and leveraging technology for operational efficiency.
4. Flexibility and Work-Life Balance: While Gen Z is ambitious and driven, they also value flexibility and work-life balance. Franchise ownership offers the potential for autonomy in scheduling and operations, allowing individuals to create a lifestyle that suits their needs and preferences.
5. Collaborative Mindset: Gen Z tends to value collaboration and teamwork. Many franchise models provide opportunities for collaboration with other franchise owners, sharing best practices, and learning from one another’s experiences.
6. Adaptability: In a rapidly changing business landscape, adaptability is crucial. Gen Z has grown up in a world of constant technological advancement and cultural shifts, making them inherently adaptable. This adaptability can be an asset in navigating the challenges and opportunities of owning a franchise business.

Overall, while individual values and preferences may vary within Generation Z, many aspects of franchise ownership can resonate with their aspirations and priorities, making it a potentially appealing path for those who are entrepreneurial-minded.

Advantages in franchising for Gen Z

For Generation Z individuals considering becoming franchise owners, several advantages may appeal to them:

• Established Brand Recognition: Franchises typically come with well-established brand recognition. For Gen Z, who are just starting their entrepreneurial journey, being associated with a recognizable brand can provide credibility and trust among consumers.
• Proven Business Model: Franchises offer a proven business model, which reduces the risk associated with starting a business from scratch. Gen Z individuals may find comfort in following a model that has already been successful, especially if they are new to entrepreneurship.
• Training and Support: Franchise owners receive training and ongoing support from the franchisor. This can be valuable for Gen Z individuals who may lack experience in business management. The support provided can include assistance with site selection, marketing strategies, operational guidance, and more.
• Access to Financing Options: Franchises often have established relationships with lenders who are familiar with the franchise model and may be more willing to provide financing to franchisees. This can make it easier for Gen Z individuals to secure funding to start their business.
• Networking Opportunities: Franchise ownership provides opportunities for networking 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, franchise owners still have a degree of flexibility and autonomy in managing their business. This can be appealing to Gen Z individuals who value independence and the ability to make decisions.
• 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 can be motivating and rewarding.
• Adaptability to Changing Markets: Franchises often have the resources and infrastructure to adapt to changing market trends and consumer preferences. This can be advantageous for Gen Z individuals, who are entering the business world during a time of rapid technological and cultural change.

The benefits of franchising are evident no matter what the age of the person, it’s just about finding the right fit for yourself and putting in the hard work!

Fibrenew is values-driven and always on the cutting edge

Having a positive impact on the environment, the community, and the brand is compulsory for the success of every member of the Fibrenew family. If you’re also tech-savvy, driven, and ready to put in the hard work, we’d love to hear from you.

These are the values that keep us successful at Fibrenew, so get in touch if a career where unlimited earning potential and protecting the planet and community go hand in hand sounds like a dream come true to you. Stay tuned!