Millennial Mentors

Preparing, and learning from, the next generation of franchisees.

By Tariq Farid, CFE

The franchise industry is rapidly growing, with new concepts created every day. Franchise businesses contribute nearly $900 billion to the U.S. economy, with one in seven jobs coming from franchises. In order to ensure that our industry continues to grow, we need to cultivate the next generation of franchise business owners – millennials. 

Estimates predict that millennials will represent 40 percent of the total workforce by 2020. As they become our future business leaders, here’s how we can best support and prepare them to embrace the franchising industry so that we can reap the benefits of this dynamic generation of entrepreneurs.

Millennials Have Fresh Ideas

Forbes reported that 72 percent of millennials have a desire to be their own boss, and what better way to achieve that than through a franchise? Investing in a franchise provides these young entrepreneurs with the opportunity to operate their own business with the support of an established network.

Millennials are also bringing fresh ideas to the table, which is crucial to seeing continued growth for our industry. They are a creative group, eager to utilize new systems and forms of technology, and will look for ways to make their customers happier faster. 

And finally, millennials are looking for a way to go out on their own and take risks. They are looking for a purpose and to contribute to the greater good, which can be found within the franchising industry.

Future of Franchising

Millennials have so much to offer the franchising industry. 

Customer service will improve as millennials bring their experience to the workforce. This generation has grown up with certain expectations regarding service, and a brand that consistently cares about its customers, is responsive in times of trouble and offers a positive experience will ensure loyalty among customers of all ages. 

Being responsive to customers, however, requires maintaining a presence on social media. No one knows social media better than millennials, who grew up doing almost any task from their smart phone. They are tuned in to what is happening around them at all times, hopping from one social platform to the next. Companies that embrace their knowledge of how to get the best results from social media, whether it’s brand building, engaging with customers or mitigating a viral crisis, will always be one step ahead of the competition. 

Millennials will also bring their own management style. This new upstart generation rejects the idea of having someone hover over their shoulder at all times and values a balance, rather than total separation, between their work and personal lives. While some franchisors may be nervous about this transition, millennials will throw themselves into work with a 110 percent commitment to helping advance the brand that they have invested in. 

“Millennials will represent 40 percent of the workforce by 2020.”

Mentoring and Investing

While millennials reject the idea of micromanaging, having a mentor guiding them every step of the way is incredibly appealing to this generation. And this is not only as a future franchisees, but franchisors as well.

Programs like IFA’s NextGen offer the resources for a new generation of franchisees to feel prepared and welcomed by our industry. NextGen aims to provide individuals from around the world with networking opportunities, constructive feedback, and a closer look into the key components of the franchise process that can be applied to their inspiring ideas. 

IFA also offers the NextGen Global Competition, allowing aspiring young entrepreneurs to present their ideas to a panel of experienced franchise industry leaders for the chance to earn not only a monetary investment in their business but also the mentorship and guidance of some of the best minds in franchising. 

I had the pleasure of judging the NextGen competition at IFA’s 2018 annual convention, where I was inspired by this year’s Social Franchise winner, Stella Sigana. Stella is deeply invested in the fight against energy poverty and indoor air pollution through her company, Alternative Waste Technologies. Inspired by her company’s mission, and thinking of similar issues in my home country of Pakistan, I made the decision to invest in Stella’s company through my foundation, the Tariq and Asma Farid Foundation. It is important to invest now more than ever, both through monetary means and mentorship, in the next generation of entrepreneurs to ensure they make franchising successful and profitable long into the future. 

The franchise industry is poised for another strong and successful year, but to continue on this track requires preparation for the years to come. After seeing firsthand, through programs like NextGen, the passion, creativity and drive of this generation, I am excited for the next evolution of franchising. Leaving it in the hands of millennials will ensure growth and success for not only these young franchise ambassadors, but those they may one day mentor and support others just as we
do now.

Tariq Farid, CFE, is CEO of Edible Brands, Founder of Edible Arrangements and a member of the IFA Board of Directors. Find out more about Edible Arrangements by clicking here.