Because they can.
But should they? I say no. Actually, I say no way.
The Wall Street Journal just ran a story about this subject. The WSJ has some incredible writers, for sure, but I wonder if they talked to the right people on this story…
I receive a few calls a year from twenty-somethings, who seem to have the drive, but not the needed finances, to invest in and run a franchise business start-up. Drive is wonderful, and is certainly needed in order to be a small business owner.
I run my own franchise consulting business, but I really don't think I could have become as mildly successful as I am if I would have joined my Dad's firm at 24 years old. I just didn't know squat. My street smarts were limited at best, and college and I just didn't get along well. (It was a very short-term relationship.)
I just didn't know enough to have any major chance for success.
If I was a franchisor now, I really don't think I would market to twenty somethings. (Even if my sales pipeline was almost empty)
From the WSJ article about young franchisees;
"Some franchisors are aggressively recruiting twentysomethings through franchise
brokers, marketing themselves in youth-friendly venues like Facebook,
and in some cases offering financial lures to get young people on
board—such as deep discounts on franchise fees, which many beginners
can't afford."
I smell trouble. Big trouble.
My feeling has always been that if prospective franchisees need a financial incentive to bring them into the fold, then they never should have been brought into the fold in the first place. (That's why, in the case of my franchise consulting business, if they don't have enough upfront money, and 6-12 months of personal expenses socked away, I'll turn them down as candidates. Unfortunately, they'll be mad at me, and end up going to someone who will work with them. Big trouble)
Besides the money factor, (no offense to any of you 20-30 year old's reading this) but you just don''t have enough business management experience under your belt, yet. You have not enough stress yet. You have not experienced enough in the business world. It's nothing personal.
Go out and get some experience. Work with great companies. Ask for the tough assignments. Learn PR, HR, Operations, and Sales. Then call me when you are about 45.
PS. Actually, one franchise expert that the WSJ interviewed did say something right;
"The real risk is that you end up bringing on a marginal franchisee
that is going to cost you more and return less," says Mark Siebert,
chief executive officer of iFranchise Group Inc., a
franchise-consulting company based in Homewood, Ill.
Here's the WSJ article. You be the judge. Come on back to this blog, and let all of us know your opinion on this really important topic. Thank you.
Maybe we can save a kid a lot of headaches. And a lot of money.
Another article to read about franchising;
"Buying A Franchise For All The Right Reasons"
Thomas Scott says
September 28, 2009 at 7:51 amThat’s an interesting article. Showhomes is in the home staging business and we recruit people to live in big, vacant homes. Internally, we want candidates to be over 25 for maturity reasons. As far as franchise sales, the younger owners are in their early 30s. These seem have a lack of basic business skills and money management experience and take some work from skilled operations staff to ramp up. That said, they are often far more energetic and have a serious drive and a few have become top performers for us. In the end, you have to look at each candidate carefully and assess what they can and may not be able to do.
Joel Libava says
September 29, 2009 at 6:29 amThomas,
Thank you for your comment, and also for supporting my blog-by subscribing to it-and reading my posts..
I hop that those young, energetic franchisees stay on long enough to realize what they really have!
The Franchise King
Joel Libava