Rocket Fuel For Franchising

Rocket Fuel For Franchising

There’s a whole new generation ready and willing to bring fresh entrepreneurial spirit to franchising, says Ryan Hicks

At the ripe old age of 32,  James “Buck” Duke rose during the destructive aftermath of the American civil war to become the undisputed king of the global tobacco industry, There were thousands of rag-tag tobacco brands and independent farms at the time, but the Duke systematically gained market share and amassed an empire. In the same way that Duke rapidly scaled his business (and an entire industry) to new heights,  there are interesting forces waiting in the wings of the modern business landscape that could do the same for franchising. I’m talking about Millennials and Generation Z. 

Franchising is a business model that allows organizations to quickly scale. Today it represents only 3% of our gross domestic product, yet it touches a great number of industries. We are at an interesting point in history; this little thing called the internet has changed the business landscape. It is easier than ever to start a business, yet the market is noisier than ever and it’s hard to compete in it. However, I believe there are forces at play that will propel the franchise business model forward towards unprecedented growth. 

Entrepreneurship is more popular than ever

In the eyes of the 100+ million or so Millennials and Generation Z, entrepreneurship is in. It is cool to be an entrepreneur. Entrepreneurship support organizations are popping up everywhere: university centers; new venture funds; incubators. There are even corporation-backed accelerator programs that put money into small technology teams which contribute to research and development.

According to the Gust Global Accelerator report, in 2015 there were 387 accelerator programs in the world. Just one year later there were 579 such programs. Membership of incubators, accelerators and university programs spiked to an all-time high. For example, INBIA (the International Business Innovation Association) has spiked to over 2200 member organizations in more than 62 countries.

There is a massive values alignment between our youth today and the franchise community. Millennials and Generation Z want to be entrepreneurs. They crave a purpose bigger than themselves. They are curious and have a thirst to learn. They want (and need) frameworks that they can plug in to. If only we had a business model based on all of the above…

Franchising needs this new blood

Despite its cultural acceptance, entrepreneurship is actually at a 40 year low according to US Census data. In 2006 there were roughly 615,000 new business starts. The last Census data (released in 2016) showed 452,835 new business starts, which amounts 24% fewer compared to 10 years prior. Historically, the data also shows that eight out of 10 new businesses fail within the first five years, even in a surging economy with low unemployment rates. So why does franchising represent only three out of 100 of new business starts?

The modern education system is flawed

How is it sustainable that most students graduate college with massive amounts of debt and little idea of what they really want to do?  Let’s take, for example, Peggy from South Carolina. She went to a highly-respected university and graduated with honors. She had a leadership position in student governance while in school, then went on to get her Masters in Business Administration. She graduated with $200k in debt.

After two short years she realizes she hates business and has a passion for interior design. She’s 27 years old and now has a mountain of debt. This story is happening all the time and it should be a massive red flag. But contrast Peggy with Amanda from New Jersey. After high school, Amanda went directly to work as an apprentice buyer for a boutique women’s fashion retailer. She worked her way up to owning a store of her own, learning how to manage the operation, solve problems and put out fires. On her 27th birthday she decided to sell the business and pursue interior design.

Now imagine Peggy and Amanda are both are applying for a job. You are the hiring manager and you have the two applicants in front of you. One is an MBA from a respected school. All of the right boxes are checked. The other applicant has no formal education but has managed an actual business. Instead of spending six years being prepared by professors spitting theory, Amanda spent that time years cutting her teeth in the school of hard knocks, learning through experience. Who are you hiring?

Instead of convincing our youth that they should spend six years and $200k on an MBA, what if we convinced them to spend $25k for a set of trade skills and showed them a path to own their own business? Wouldn’t it be neat if, at the end of each trade program, students could apply for funding to operate their own business? Or, worst-case scenario, enter a focused job market? What if capital institutions rallied behind these notions? What if corporations stepped up to the plate, much like they have with accelerator programs, to help fund these programs? Couldn’t these act as a farm league for awarding franchise licenses?

I’m not even remotely asserting that everyone should be a franchisee. What I am asserting is millions of youth want to be entrepreneurs yet lack the training and education needed.  I predict that we will see capital and education rally behind the right training, and this will produce more franchise growth than we’ve ever seen before.


ABOUT THE AUTHOR
Ryan Hicks is the host of Modrn Business Podcast and executive producer of the upcoming Modrn Business TV and Book series. Mr. Hicks serves as the VP of Business Development for Rallio.com, the leading Social Media Management Platform for franchise chains, and is a Franchise Advisor and business consultant for Solink.com

 

 

Global Franchise Meets.

An inspirational new web video series where we meet the business leaders and influencers in International Franchising.

you may be interested in

franchise directory

  • TaxAssist Accountants

    Business & Professional Services, Financial Services, <100K, Featured

  • Cafe2U

    Food & Catering, Coffee, Take-away, <100K, Featured

  • 0800 Pizza

    Food & Catering, Fastfood, Pizza, Take-away, Featured

view more
Connect with Linkedin Logo
Global White Logo Click Here
Close button

WHAT DO WE USE YOUR INFORMATION FOR?

Any of the information we collect from you may be used in one of the following ways: To personalize your experience (your information helps us to better respond to your individual needs) To improve our website (we continually strive to improve our website offerings based on the information and feedback we receive from you) To improve customer service (your information helps us to more effectively respond to your customer service requests and support needs) To process transactions your information, whether public or private, will not be sold, exchanged, transferred, or given to any other company for any reason whatsoever, without your consent, other than for the express purpose of delivering the purchased product or service requested. To administer a contest, promotion, survey or other site feature To send periodic emails The email address you provide for order processing, will only be used to send you information and updates pertaining to your order. Note: If at any time you would like to unsubscribe from receiving future emails, we include detailed unsubscribe instructions at the bottom of each email.

HOW DO WE PROTECT YOUR INFORMATION?

We implement a variety of security measures to maintain the safety of your personal information when you place an order or enter, submit, or access your personal information We offer the use of a secure server. All supplied sensitive/credit information is transmitted via Secure Socket Layer (SSL) technology and then encrypted into our Payment gateway providers database only to be accessible by those authorized with special access rights to such systems, and are required to keep the information confidential. After a transaction, your private information (credit cards, social security numbers, financials, etc.) will not be stored on our servers.

DO WE USE COOKIES?

Yes (Cookies are small files that a site or its service provider transfers to your computers hard drive through your Web browser (if you allow) that enables the sites or service providers systems to recognize your browser and capture and remember certain information. We use cookies to help us remember and process the items in your shopping cart, understand and save your preferences for future visits, keep track of advertisements and compile aggregate data about site traffic and site interaction so that we can offer better site experiences and tools in the future. We may contract with third-party service providers to assist us in better understanding our site visitors. These service providers are not permitted to use the information collected on our behalf except to help us conduct and improve our business.

DO WE DISCLOSE ANY INFORMATION TO OUTSIDE PARTIES?

We do not sell, trade, or otherwise transfer to outside parties your personally identifiable information. This does not include trusted third parties who assist us in operating our website, conducting our business, or servicing you, so long as those parties agree to keep this information confidential. We may also release your information when we believe release is appropriate to comply with the law, enforce our site policies, or protect ours or others rights, property, or safety. However, non-personally identifiable visitor information may be provided to other parties for marketing, advertising, or other uses.

THIRD PARTY LINKS

Occasionally, at our discretion, we may include or offer third party products or services on our website. These third party sites have separate and independent privacy policies. We therefore have no responsibility or liability for the content and activities of these linked sites. Nonetheless, we seek to protect the integrity of our site and welcome any feedback about these sites.

CHILDRENS ONLINE PRIVACY PROTECTION ACT COMPLIANCE

We are in compliance with the requirements of COPPA (Childrens Online Privacy Protection Act), we do not collect any information from anyone under 13 years of age. Our website, products and services are all directed to people who are at least 13 years old or older.

ONLINE PRIVACY POLICY ONLY

This online privacy policy applies only to information collected through our website and not to information collected offline.

TERMS AND CONDITIONS

Please also visit our Terms and Conditions section establishing the use, disclaimers, and limitations of liability governing the use of our website at globalfranchisemagazine.com/terms-conditions

YOUR CONSENT

By using our site, you consent to our online privacy policy.

CHANGES TO OUR PRIVACY POLICY

If we decide to change our privacy policy, we will post those changes on this page

CONTACTING US

If there are any questions regarding this privacy policy you may contact us using the information below. All correspondence relating to the Website should be sent to: Global Franchise 21/23 Phoenix Court Hawkins Road Colchester Essex CO2 8JY Email: subscriptions@aceville.co.uk