Commentators are writing a lot about integrating millennials into the business world.  A  recent article in QSR Magazine  brings this discussion to the franchise industry by urging franchisors to target millennials as the next generation of franchise business owners.  According to the article, millennials (those born between 1980 and 2000) spend more money in restaurants per capita than any previous generation and are the largest living generation in the United States.   Millennials have the potential to be innovative managers and franchisees but are selective about finding an authentic brand that fits their lifestyle. The article quoting Dan Rowe, founder and CEO of Fransmart, says that millennials are finding successful and thriving brands through social media and seeking out franchise opportunities unsolicited.

Copyright: iqoncept / 123RF Stock Photo
Copyright: iqoncept / 123RF Stock Photo

For franchise brands looking to attract millennials as franchisees it pays to keep in mind the things that induce them to the franchise industry:

  1. Social Media Buzz. Because many millennials are well versed in public relations, technology savvy and driven by things like Yelp ratings, it pays more than ever for a franchise system to have a good social media presence.
  2. Alternative Financing.   Gone are the days when the only way to finance a new business venture was to walk into your local bank and ask for a loan. Millennials are willing and able to take advantage of funding sources available online for start-up costs. Franchisors should be aware of these financing opportunities when evaluating prospects.
  3. Understanding Their Own Weaknesses. Millennials are more honest with themselves at what they are good at and what they are not good at. Millennials are often attracted to models where a system provides the “back-end work figuring out suppliers and logistics.”

While many articles have focused on how to “deal with” millennial traits that may not be desirable to a market still filled with babyboomers and Generation Xers, this article does a good job outlining Millennials positive attributes. Franchise systems looking to expand their prospect pool should give it a read.