The Benefits Young Franchisees Bring to Franchising

Alex Davis is the owner-operator of four Liberty Tax offices. He's on the elite list of "Top Gun" performers of the 1,800 franchisees in the Liberty Tax system, and a PR Winner at the company’s most recent convention. And he’s only 27.

Zach Beutler opened his first Complete Nutrition location in December 2009, opened a second location last month, and has plans to open three more. Beutler's original location brought in $950,000 in sales last year and is on pace to do $1.3 million this year. Beutler is only 23.

The success of these franchisees is impressive, and the fact that they’ve reached these milestones at such a young age makes their accomplishments all the sweeter. What exactly do young people bring to the table that enables them to be successful within a franchise system? While they might not have years of experience or the time to have gained life wisdom, they bring a different set of skills that may be just as valuable in the franchising world.

Enthusiastic Learners: “For many [young franchisees], this is their first business and they want to learn everything that they can,” says Jonathan Barnett, who founded Oxi Fresh, an environmentally friendly carpet cleaning franchise, when he was only 26. “They ask a lot of questions, seek advice, and are willing to try new ideas and methods. Of course, it’s a two-way street. Young franchisees ask a lot of questions, but they also have a lot of creative ideas they want to share with us. I love that sort of enthusiasm.”

Willing to Take Risks: Young franchisees "have less fear, which makes them more willing to be aggressive. They are very open minded and 'coachable’," says Steve Hearon, CertaPro Painters' vice president of franchise development, who reports that approximately 10 percent of his franchisees are in their 20s. Ryan Zink, president of franchisor Complete Nutrition, agrees, saying, “They lack a fear of failure, which gives them an ability to try new things at unprecedented rates, from a new product to a new marketing avenue. We are always learning from their experiences.” Nearly half of Complete Nutrition’s franchisees are under the age of 30.

Time and Energy: With boundless energy, it’s often easier for younger franchisees to devote the time and effort needed to make a new franchise successful. “[Young franchisees] are often willing to put in longer hours and weekends due to fewer family commitments and constraints," says Hearon.

Passionate: “Young franchisees [have] an indescribable energy and a hunger for the health and fitness industry that our customers can feel,” says Zink. “They are passionate about helping people and are active in their community, making things happen. This passion shows from the in-store experience to the follow-up.”

Savvy About Technology and Social Media: “Social media is the word-of-mouth of today,” says Scott Iversen, director of marketing for Toppers Pizza, an eclectic pizza takeout and delivery franchise. “If we want the Toppers brand to be a part of today’s word-of-mouth conversations, not being on social media is not an option — and we have to be there in an engaging way. Younger franchisees definitely see the value of this avenue of marketing because they are the same demographic we are targeting from a retail customer prospective.”

Youthful Image: “Having younger franchisees definitely helps build our brand,” says Iversen. “The Toppers brand is known for its youthful, fun, irreverent tone. When someone sees a Toppers store that’s jamming, I think they would think of a young person running that store.”

Having young franchisees on board can be a definite asset for any franchise. But before you set your expectations high, read this. According to David Lewis, executive director of franchising for Express Employment Professionals and author of The Emerging Leader: Eight Lessons for Life in Leadership, younger franchisees may come on board with their own set of expectations.

• “Gen Y / Millennial franchisees came of age in a hyper-connected world and have a strong need to see the purpose in their work,” says Lewis. “These franchisees tend to keep you grounded on the intrinsic value of the work, versus a singular goal of increasing revenue.”
  
  
• “Watch for these younger franchisees to challenge the bureaucracy and protocols of the organization,” says Lewis. “Millennials tend to prefer a collaborative leadership style and see the franchisee/franchisor relationship as a flat partnership instead of a hierarchal worldview.”
  
  
• “Be prepared to push your technology budget,” says Lewis. “Millennial franchisees demand a high-tech franchise system that provides real-time and intuitive data.”

If you’re prepared to harness the assets young franchisees can bring, and to provide the guidance and tools they seek, their contributions will help your franchise system grow.