Are you using the wrong ideal franchisee avatar?

There’s a common misconception about franchising which is that it’s seen as old. An old business model, aimed at older generations – essentially, a dinosaur. A thing of the past. Yet a closer look at some of the figures reveals that franchising contributes an estimated 17 billion pounds to the UK economy on an annual basis. And that’s no laughing matter.

If we go even deeper in unravelling some of the other misconceptions around franchising, we will also discover that many franchisors are making one fundamental mistake repeatedly. And that is targeting their efforts at potential franchisees aged 40+ who tend to be seasoned professionals in their various respective industries.

But in the 21st century, with so many emerging brands as well as new types and concepts, franchising has the potential to attract and appeal to an even wider market segment by focusing on younger generations. This opportunity is yet to be explored to its full potential.

The “Zoomers,” or Generation Z, are one prime example. As the first generation to grow up with the internet and portable digital technology, they know how to navigate tech from a young age and are extremely savvy. Meanwhile, Millennials are characterised as being risk-averse and entrepreneurial.

What both generations tend to have in common is that they don’t have corporate aspirations in the sense of working their way up the corporate ladder. While they may have some experience with this, they’re more attuned to be self-employed and become entrepreneurs.?

A shining example of this is Harpeet Kaur. The winner of this season’s reality show The Apprentice. At the tender age of 30, she is already a business owner running several dessert bars, which she dreams about taking nationwide through franchising.

Another example to demonstrate the power of youth is yours truly. Aged 25, I personally owned and managed an oven cleaning franchise. This business saw great success reaching up to 12 teams that went on the road. Helping me cover my university’s weighty tuition fees, I learned an invaluable amount from the experience, which also helped solidify my career path.

That being said, it’s crucial not to underestimate young people’s potential in the franchising world. And for this reason, franchisors should actively be reaching out to them with their franchising opportunities. Here’s why. The younger generation is considered extremely ambitious and risk averse. What’s more is that without the corporate experience behind their back, they are more prone to out-of-the-box thinking and originality – a major ingredient for an aspiring entrepreneur’s success. Finally, by partnering up with a young and successful franchisee, there is a much higher likelihood that they’ll remain with your business for longer and even grow into it, possibly becoming multi-unit owners in the future.

At its simplest, franchising is based on a proven business model which can be replicated without specialist knowledge – this is ideal for a young, entrepreneurial-minded person who wants to take their life, success and future into their own hands.

Furthermore, young people have a strong drive to succeed. This is a fundamental element of making it in the franchise world, exemplified by the late Dave Thomas, founder of Wendy’s, who has said that the three simple factors for starting a business are to:

“know your product better than anyone, know your customer and have a burning desire to succeed.”

But does age actually matter in business? According to a new study from the Lally School of Management at Rensselaer Polytechnic Institute, entrepreneurs who launch their own business in their 50s are as successful over time as those doing so at the age of 29. The findings didn’t pick up on discrepancies across genders either.

This now brings us to an important question: are you possibly making targeting errors with your ideal franchisee avatar? And how long has it been since you actually revised this? Now might be the perfect time to broaden your target market and avoid placing limitations on yourself and your business. On the bright side, it’s never too late to make the necessary adjustments.

So, how can you do this? Here are some tips.

1.????Redefine your buyer persona or ideal franchisee avatar.

Consider creating a few more additional franchisee avatars to your current ones. These should ideally fit a new, younger age group. Once you’ve done this, it’s time to think deeply about them. Ponder over their aspirations, problems, values, desires, etc. Figure out how they communicate. Which platforms do they use? It’s also important to determine their buying power. Other criteria to look out for include marital status, hobbies and passions.

2.????Repurpose your value proposition to appeal to a younger audience.

Next up, it’s time to think about the ways in which you can appeal to them. Your value proposition should attempt to meet their needs (identified in point 1 above) and solve the challenges you identified they’re facing. One way you could do this is to appeal to the benefits of working from home or more work-life balance, if your franchise allows for this. Another way is to offer those who are driven and highly ambitious the flexibility of being self-employed while having the chance to explore the world. Whatever your franchise business offers them to solve their pain points.

3.????Find the channels where you can reach that audience.

Lastly, you need to approach them. The best way is to determine the ways in which you can reach them. Although it might be tempting to think about using digital channels and social media platforms, try to be creative. Are there any business incubators or organisations supporting young entrepreneurs which you can approach?

What is holding you back?

Some franchisors might believe that their franchising opportunities are just not suited to the younger market. In some cases, they may think that because they require a comparatively high initial investment, their best bet is to target experienced professionals with savings who are looking to invest. But this doesn’t have to be the case. Especially for franchises which offer lower entry fees. They can certainly take the opportunity to diversify their networks by offering their opportunities to younger franchisees. Why should you consider this? One striking reason is because Generation Z and Millennials are much more likely to delay decisions to purchase a property and would rather invest in a start-up business, stock, funds and cryptocurrency, making them an ideal franchise prospect. You’ll be even more successful in your efforts if you present your franchise opportunity in an appealing way which calls out to them, meets their needs and solves some of their challenges.

And speaking of their needs and challenges, be sure to factor these in when creating your franchisee avatar. You may have to do this from scratch, but you don’t have to. We have prepared a Franchisee Buyer Persona template that you can download for free from our website to use as a guide. The template will ask you several questions and you should then create at least two or three different ideal franchisee avatars. By taking these steps, you’ll have a much clearer picture of who you should be targeting with your franchise opportunity, and this will open up a whole new world of opportunities for new potential franchise prospects.

Still finding yourself struggling? Don’t worry. You can always book your spot for our free Introduction to Franchise Growth masterclass. During the session, I’ll help you figure out how to create your ideal franchisee avatar as well as share best practices and well-kept secrets in the industry. I really encourage you to sign up for this opportunity as soon as possible because space is limited. Looking forward to seeing you there!