Five Franchise Buyer Trends Affecting Boomers, Gen X and Millennial Groups
By Dick Bass
Senior Franchise Advisor, Your Franchise Success
I frequently get asked in initial consultations “What are the hottest franchise buyer trends out there right now?” While there are buyer trends in franchising that can be pointed to, my counsel will always take you back to knowing your own strengths, skills, personal and professional goals and values. Once you have these in place, your search for a franchise opportunity will be focused on things that are most important to you.
After 30+ years in franchising, I’ve seen a lot of franchise buyer trends come and go. From the early days of rustproofing to the evolution of upscale barbershops, I’ve pretty much seen it all. After helping hundreds of people realize their goal of self-employment, following are five of the most prevalent franchise buyer trends today:
- Semi-Absentee Ownership
People with jobs are investing in franchises where they can employ a manager and keep their day job. More and more franchise concepts have built their business models to fit this trend as individuals look for additional revenue streams to build wealth or a safety net to reduce the risk of getting laid off.
- Using 401K and IRA for Franchise Financing Without Taxes or Penalties
Although we are hearing the state of bank lending is getting better, people are still turning to their 401K and IRA’s to finance their franchise without taxes and penalties once they become knowledgeable about it.
- Baby Boomers Still Experiencing “Downsizing”
Many clients are baby boomers who continue to be downsized due to the fluctuating economy and what they consider to be “age discrimination.” People with this level of extensive management and skills tend to be great franchisees due to their maturity and experience.
- Generation X and Millennial Getting Help From Boomers
Boomer family members who are already in business are helping their adult children consider self-employment. We see them partnering, mentoring and financing their college educated children as a way of helping them secure the next generation’s future.
- Many Franchise Seekers are Also Job Seekers
It is not unusual for clients to be looking for a job at the same time they are researching a franchise opportunity —sort of a “hedge their bets” type strategy.
The good news is that the sum of these franchise buyer trends point towards franchising being perceived as a viable solution to several socio-economic challenges in the U.S. today for Baby Boomers, Gen X and Millennial.
Dick is a long time resident of Novi, Michigan and resides with his wife Sherry. He loves hanging out with his grand kids, being a spectator at hydroplane races and listening to his extensive collection of jazz and big band music. He’s also an active member of St. John’s Episcopal Church and has been told by numerous clients he looks like Tom Bosley of “Happy Days.” For a free consultation, call Dick at 248.496.2893.