You may think that the prospective franchise
owner is a certain type of person:
probably a man who is dissatisfied with his career and is looking to invest in a profitable, low-risk opportunity that doesn't require too much prior business experience. However, this stereotype couldn't be farther from the truth. Perpetuating this stereotype only makes you miss out on potential business opportunities that you might otherwise never think were right for you, so gaining some clarity is essential.
With so many misconceptions about the near-future market of potential franchisees, we decided to paint a clearer picture of who exactly is interested in buying franchises today. In order to do so, Regis Corporation,
parent company of Supercuts, conducted an independent third-party study to dig deep into the real motivations of potential franchise owners. What we found was strikingly different than what you'd expect.
Through an online survey we polled 1,000 affluent individuals across the U.S., both males and females between the ages of 30 and 64, with an annual household income greater than $100,000. All participants either had plans to change careers, the intention to start a new business or franchise, or the intention to make passive investments. Therefore, this is a pool of people who are actively managing their careers and/or investments.
Our survey participants were grouped around business intention: 15% were Franchise Intenders who said they were extremely likely or very likely to own a franchise within 18 months; 31% were Business Intenders who said they were extremely likely or very likely to start their own independent businesses within 18 months; and 54% were Non-Intenders who were not seeking business ownership now or in the future.
The truth is lots of people consider franchising — not just men. There was no statistical difference in the outlook for women and men looking to start a business. However, it is worth mentioning that men were about twice as likely to consider a franchised business than women.
Another interesting takeaway is that Franchise Intenders reported the most business experience when compared to Business Intenders and Non-Intenders. In other words, Franchise Intenders don't necessarily lack business experience. Instead, they can appreciate how franchises can complement this inherent understanding.
We also found that, contrary to the popular belief that Franchise Intenders desire to escape their dissatisfying careers, most of them actually want to keep their current jobs as they pursue and open franchises. They are often successful and appreciate the lives they currently have. Most Franchise Intenders simply wish to expand upon the success they've already achieved.
Franchisors often market their businesses as a low-risk path to business ownership, but it turns out that Franchise Intenders were more than twice as likely to consider risk as a "thrill" than Business Intenders. So basically, Franchise Intenders are quite comfortable with risk, and what they really seek is resources.
One might also assume that prospective franchisees are driven by a strong desire for independence. However, both men and women were equally likely to have or seek a business partner, so they don't necessarily want to strike out on their own.
This new level of understanding is crucial because it can lead to business opportunities that you may never have previously considered. Leaving the existing stereotypes unchallenged only hinders prospective growth. Let this fresh perspective spark and foster meaningful conversations that connect you with growing brands you may be interested in partnering with. You may not think you’re a future franchisee, but what if you actually are?
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