Franchise Categories that Appeal to Young Entrepreneurs

As Millennials reach maturity, the generation is becoming increasingly drawn to franchising, especially following the COVID-19 pandemic and the Great Resignation. In addition to being the largest generation currently serving in the U.S. labor force, a study found that 60% of Millennials identify as entrepreneurs and are interested in investing in their own businesses. And according to a Harvard Business report, the highest resignation rate for Americans that recently quit their job falls between the age bracket of 30 to 45. 

“This age bracket perfectly correlates with the change in the average age seen for franchise owners — it has lowered by about 10 years,” said Brent Dowling, CEO of franchise consultancy firm Raintree*. “We are seeing more Millennials buying franchises than ever before.”

Now, with Millennial buyers outpacing Baby Boomer buyers for the first time, the younger age group accounts for over 20% of franchise ownership. But these younger entrepreneurs aren’t necessarily interested in the same categories as the generations that came before them. That is why franchisors need to develop an understanding of what these up-and-comers are looking for if they hope to appeal to the buyers of tomorrow.

Here are a few franchise categories younger entrepreneurs may be drawn to. 

Home Services

Forbes points out that one of the most appealing aspects of franchising to Millennials is the idea of having a flexible schedule that allows for a better work-life balance where they aren’t required to spend every second of every day working. Additionally, according to Franchise.com, 65% of Millennials leverage mobile technology for business. When it comes to combining flexibility with mobile-based businesses, the home services industry is a clear leader, with concepts that often don’t require a brick-and-mortar location, complex operations or high startup costs. These can range from lawn care to moving to painting to handyman services and beyond.

FranNet consultant Kristina Hawfield, for example, recently paired a Millennial franchise buyer with the moving and junk removal franchise College HUNKS Hauling Junk & Moving. “He was looking for a business that would allow him, as an entrepreneur, to self-direct his own career,” she said. “He wanted that flexibility to take a vacation to Colombia and know that he is set up to take that time off and still work remotely and be involved in the business. A lot of Millennial buyers don’t want to be at the liberty of a W-2 paycheck.”

Eco-Friendly and Green Concepts

Many entrepreneurs in the younger generation are interested in more than just making a quick buck — they want to make a difference. As a result, environmentally conscious and green franchise concepts are becoming more popular than ever. There are hundreds of concepts ideal for able-bodied young people who enjoy the outdoors and want to be involved in a business that is environmentally and socially responsible. 

groOrganic, for example, is a franchise that assists people and businesses in growing organic backyard gardens that are later harvested for food. Kim Kardashian even hired groOrganic to help create a healthier lifestyle for her family — if that doesn’t appeal to Millenials, nothing will.

Tech-Driven Concepts

For a generation that has grown up seeing friends become millionaires by creating the next big app, technology-based businesses are particularly attractive. While nearly every segment utilizes technology in some way, there are definitely some franchise brands that are emerging as uniquely disruptive and exciting when it comes to staying on the cutting-edge of innovation. 

Robin Autopilot, for example, is the world’s first robotic lawn care service. The company offers young entrepreneurs access to a one-of-a-kind and disruptive technology with a fast startup and expansion model. GoTelecare is a telehealth video consultation and medical billing service franchise that gives entrepreneurs the chance to fill the massive, post-pandemic demand for virtual medical and health services.