For many millennials, entrepreneurship doesn’t have to mean starting a business completely from scratch. Franchising offers another path to business ownership, combining an established brand and business model with the opportunity to operate an independently owned business.
Millennials have also become an increasingly important demographic in the franchise and broader business-buying market. But age alone doesn’t determine whether someone is suited to franchise ownership. The right opportunity depends on factors such as financial resources, skills, goals, lifestyle, and willingness to follow an established business system.
Are Millennials Interested in Franchise Ownership?
Millennials have demonstrated significant interest in business and franchise ownership.
According to Franchise Business Review, “While franchising is still dominated by Baby Boomers and Gen Xers, Millennials are the fastest-growing ownership group. As of 2024, Millennials made up 18% of all franchise owners, a 49% increase year over year.”
Franchise Insights states that “interest in franchise ownership spans all adult ages, but the most likely cohort for taking the leap is around middle age.” While Gen-X currently makes up the majority of franchise seekers, the future belongs to millennials as the first millennials have just begun to reach middle age.
Millennials are an important part of the next generation of prospective franchise owners, but they are not the only demographic exploring franchise opportunities.
Why Are Millennials Exploring Franchising?
There is no single reason millennials consider franchise ownership. However, several aspects of the franchise model may appeal to entrepreneurs who want to build a business while having access to an established framework.
An Established Business Model
Starting an independent business requires an entrepreneur to develop a concept, establish operating procedures, build a brand, determine pricing, create marketing strategies, and develop systems for serving customers.
A franchise provides an existing business model and established operating framework. Franchisees still have substantial responsibilities as business owners, but they don’t necessarily have to build every component of the business from the ground up.
For a first-time entrepreneur, that structure can provide a starting point for learning how to operate and grow a business.
Training and Ongoing Support
Franchising can also provide access to training and ongoing support. Depending on the franchise system, this may include initial training, marketing resources, operational guidance, technology, supplier relationships, and continuing education.
This type of support can be particularly relevant to prospective owners who have professional experience but haven’t previously managed a business of their own.
Greater Control Over a Career
Control over one’s career continues to be an important motivation for prospective business owners. For millennials who have spent years working in traditional employment, owning a franchise can provide an alternative path in which they have greater responsibility for business decisions, operations, and long-term direction.
That doesn’t necessarily mean franchise ownership provides unlimited flexibility. Franchisees must follow the terms of their franchise agreement and operate according to the franchisor’s system. The amount of flexibility can also vary considerably between franchise concepts such as an owner-operator vs. semi-absentee franchise.
Technology and Digital Skills
Millennials entered the workforce during a period of rapid growth in smartphones, social media, e-commerce, digital marketing, and other technology.
Those experiences can translate into useful skills for franchise owners, particularly in businesses where online marketing, customer communication, reputation management, scheduling, or digital sales are important.
Technology skills alone, however, don’t replace the need for operational, financial, leadership, and people-management skills. Prospective franchisees should evaluate the technology and marketing resources provided by each franchisor rather than assuming every franchise operates the same way.
Lifestyle and Values
For many millennial entrepreneurs, business ownership is about more than income. Lifestyle, schedule, family responsibilities, personal interests, community involvement, and a company’s values can all factor into the decision.
Can Millennials Afford a Franchise?
Franchise investments vary significantly, so there isn’t a single financial threshold that determines whether someone can become a franchise owner.
Some concepts require a relatively modest initial investment, while others require substantially more capital. The total investment can include:
- Initial franchise fee
- Real estate or lease expenses
- Build out of location
- Equipment and furnishings
- Inventory
- Technology
- Insurance
- Professional services
- Advertising
- Payroll
- Working capital
- Other startup and operating expenses
The total cost of starting a franchise is much more than the initial franchise fee.
Prospective franchisees should review the franchisor’s Franchise Disclosure Document (FDD) to understand the estimated initial investment and other financial requirements associated with a specific opportunity.
Millennial Franchise Ownership Trends to Watch
The franchise industry is continuing to evolve as younger generations enter both sides of the franchise relationship, as prospective owners and as consumers.
Lifestyle Design Is Becoming Part of the Conversation
Traditional franchise messaging often emphasizes financial opportunity and being your own boss. Those considerations remain important, but younger prospective franchisees may also evaluate what day-to-day ownership actually looks like.
Questions about schedule, location, owner involvement, staffing, and personal time can be just as relevant as questions about revenue.
Technology Is Changing Franchise Operations
Franchise systems are increasingly using digital tools and automation for marketing, customer management, scheduling, data analysis, and other operational functions.
For millennials who are already comfortable with digital platforms, a technology-enabled franchise may offer an opportunity to apply existing skills. At the same time, prospective owners should investigate how much technology is provided by the franchisor and how much responsibility falls on the franchisee.
Specialized Concepts Are Expanding
Franchising continues to expand beyond traditional restaurants and retail businesses.
Health and wellness, business services, home services, and other specialized categories are creating additional options for people interested in franchise ownership.
Younger Owners Are Looking for Skills Growth
For someone moving from a corporate career into entrepreneurship, franchise ownership can provide an opportunity to develop skills in leadership, operations, sales, marketing, financial management, and team building.
The franchisor-franchisee relationship may also provide access to experienced professionals and other franchisees within the system.
Frequently Asked Questions About Franchising for Millennials
Are millennials interested in franchise ownership?
Yes. Millennials represent a significant portion of people exploring business and franchise ownership. The number will only increase as the oldest millennials are just now reaching middle age.
Can Millennials afford to buy a franchise?
Potentially. Franchise investment requirements vary substantially by concept. Millennials can explore opportunities at different investment levels and may use personal savings, financing, partners, or other sources of capital depending on their financial circumstances.
Do you need business experience to buy a franchise?
Not necessarily. Some franchise systems are designed to provide substantial training and support to first-time business owners. However, prospective franchisees should honestly evaluate their management, financial, sales, and leadership skills and determine what training they will need.
Is franchising a good option for a first-time business owner?
Franchising can provide first-time entrepreneurs with an established business model, training, and ongoing support, but it still requires significant financial and operational responsibility. Prospective owners should evaluate the specific franchise rather than assuming that franchising is automatically the right fit.
Explore Franchise Ownership With FranNet
If you’re a millennial considering business ownership, you don’t have to sort through thousands of franchise opportunities on your own.
A FranNet franchise consultant can help you evaluate your goals, experience, financial considerations, and preferred level of involvement before identifying franchise concepts that may fit your criteria. Schedule a free consultation today to get started!