Many young entrepreneurs (often recent college graduates) have become interested in the idea of buying a franchise. For a young businessperson, the idea of running their own business sounds incredibly appealing, and a franchise could provide a safer path for them to follow.
In fact, there has been a 6% spike in young franchise owners since 2006. And while this number may seem small, it is imperative in the franchise world, which has usually been ruled by a more experienced population.
Young people have big aspirations, and with franchising they can grow to become as big as they want. However, buying a franchise is not for everyone. There are certain personality traits and other aspects to consider before venturing in franchises.
Why Do Young People Choose Franchises?
Franchises look like the obvious choice for many young entrepreneurs. There are many reasons why franchises are so appealing to younger audiences looking to break the mold, and start their own business at an early age. Young franchisees are looking for:
- Independence
- Entrepreneurship
- Support from a proven business
- To be backed by an established brand
How Do You Know If Franchising Is for You?
As a young entrepreneur, your drive and motivation are through the roof – and you should embrace this. Most people that have been in the business for longer may not have that same drive. The franchise culture is somewhat like college. You follow the rules, yet strive to be better on your own. Because of this, many franchisors love younger business people. Franchisors know they (young entrepreneurs) follow the rules better than those who have been in the business for years.
If franchising seems like the right option for you, make sure you follow these tips to make it as a young franchisee.
Assess Your Motivation
Regardless of age, you should always have the right motivation behind a business transaction. Consider what your motivation is for buying a franchise. Is it due to not finding a job? Then buying a franchise is probably not the right choice.
Educate Yourself
Unless you went to franchise school, you probably don’t know a great deal about the industry. Take the time and educate yourself about the business, franchise culture, the process of buying a franchise, etc. It is always better to make an informed investment than just trying your luck at a new business.
Research Your Options
There are over 781,991 franchise establishments in the U.S. alone. Research the type of franchise concepts and brands available to better assess what you want to invest in. Visit franchise expos, research online, attend seminars, contact local franchisees for information, and more.
Evaluate Your Finances
As with any investment, money is essential. Evaluate your finances and see if franchising is the best way to use your money. Most young entrepreneurs find it difficult to meet the capital requirements for a franchise. They tend to seek franchise loans or sometimes receive investment funds from their parents or family members.
Seek Legal Advice
Unless you are knowledgeable in franchise law, seeking legal advice can help you stay away from pitfalls. A franchise lawyer or someone who has an extensive background in the franchise system, can help you better understand the legal side of the business, as well as provide you with guidance regarding permits, insurance, franchise agreements, etc.
Be Ready for Failure
This is perhaps the most important piece of advice. Most people believe a proven business means there is no room for failure when truly, there is. Not all franchises succeed - there are too many variables to take into consideration, and as with any other business, it requires talent and luck to succeed.
Are There Downfalls to Being a Young Franchisee?
The first downfall is experience. While you might have internship experience under your belt and had an excellent college record, the real world is much different. The franchise world is even more different.
The biggest downfall young investors face is that people do not take them seriously. With experience comes your reputation. Without experience, franchisors and other franchisees do not trust you, and in some cases, can tend to ignore your motivation, passion, and other talents.
What It Takes to Become a Hungry Howie’s Franchisee
At Hungry Howie’s, we believe franchisees are part of our family, and we make sure we walk them through the process of joining our ever-growing family. From the moment we initiate a friendly call to the day we open the store, we are with our franchisees through every step of the process.
All Hungry Howie’s franchisees share our core values and work within their communities to provide people the opportunity to enrich their lives and community. They do this through job opportunities, charitable events, fundraisers, community outreach programs and more.
At Hungry Howie’s we believe our franchisees should:
- Treat everyone like family
- Reach their goals
- Have integrity
- Be hungry for growth
- Have a positive energy
Do you think you have what it takes to start a franchise? Age should not be a restraint when it comes to pursuing your dreams and ambitions. Learn more about how to start your own Hungry Howie’s pizza franchise today.
Sources:
http://www.franchisedirect.com/information/usfranchiseindustrystatistics/?r=5003
http://www.franchisedirect.com/blog/never-too-young-for-franchising/
