— By Tim Conn —
8 tips to appeal to Gen Z and future franchisees.
Franchising has long been a successful business model, offering entrepreneurs the opportunity to own a business with an established brand and built-in support system. As the economic landscape evolves, the demographic that franchise owners must appeal to is also shifting. Generation Z, those born between 1997 and 2012, is emerging as a powerful consumer group and a growing pool of future franchisees. It’s imperative that current franchise owners understand and adapt to the values, preferences and expectations of Gen Z to attract them not only as customers but also as future franchise owners. Here are several strategies my team is experimenting with to accomplish this goal.
1. Leverage Technology & Innovation
Gen Z has grown up in a digital world; we know this. They’re adept at using technology and expect businesses to be equally proficient. Franchise owners should invest in cutting-edge technology to enhance both customer experience and business operations. This includes implementing mobile apps for administrative duties and loyalty programs, embracing wearable devices to boost productivity, utilizing AI for personalized marketing and adopting digital payment solutions. Additionally, showcasing innovative uses of technology in franchise operations can attract tech-savvy Gen Z entrepreneurs looking to invest in modern, forward-thinking businesses.
2. Foster Authentic & Transparent Communication
According to a recent report by Roundel, authenticity is a core value for Gen Z. They are skeptical of traditional advertising and prefer honest and transparent communication. Franchise owners should focus on building authentic relationships with their audience through social media and digital platforms, where genuine interaction is highly valued. Sharing behind-the-scenes content, employee stories and customer testimonials can create a more relatable and trustworthy brand image. Furthermore, clear and open communication about the franchise model, including potential risks and rewards, can appeal to Gen Z’s desire for transparency when considering franchise opportunities.
3. Create Inclusive & Diverse Environments
Diversity and inclusion are important to Gen Z. They seek out and support brands that reflect a wide range of cultures, identities and experiences. Franchise owners can appeal to this characteristic by ensuring their branding, hiring practices and corporate culture embrace diversity. Promoting an inclusive environment not only helps attract Gen Z customers but also encourages a broader range of potential franchisees who feel represented, valued and part of a welcoming community.
4. Offer Flexible & Customizable Business Models
Flexibility is a significant factor for Gen Z, who have recently demonstrated their priority in work-life balance and the ability to personalize their career paths. Franchise models that offer various levels of investment, operational involvement and opportunities for customization can be particularly appealing. For instance, offering franchise options that range from full-scale brick-and-mortar operations to smaller, mobile or home-based businesses can attract a wider array of potential franchisees. Additionally, allowing franchisees to tailor certain aspects of their business to fit local market demands or personal interests can be a strong selling point.
5. Highlight Entrepreneurial Support & Growth Opportunities
Gen Z, and most professionals, value personal growth and career development. They are drawn to opportunities that offer mentorship, training and a clear path for advancement. Emphasizing the support systems in place for franchisees, such as comprehensive training programs, ongoing operational support and access to a network of experienced franchisees, is an effective way for franchise owners to entice young, maturing professionals. Highlighting success stories and potential career trajectories within the franchise is another way to demonstrate the long term benefits and opportunities for personal and professional growth.
6. Emphasize Social Responsibility & Sustainability
Gen Z can be particularly conscientious of social and environmental issues. They prefer brands that demonstrate a genuine commitment to sustainability, ethical practices and social responsibility. This could include sourcing eco-friendly materials and supporting local communities. More than appealing to Gen Z consumers, according to the Department of Energy and Forbes, sourcing things such as high-efficiency lighting fixtures can help companies save money and meet increasingly stringent compliance requirements. Offering detailed metrics on your sustainability efforts and ethical sourcing can build trust and loyalty among Gen Z consumers and potential franchisees.
7. Engage in Community Building & Networking
Gen Z appreciates being part of a community where they can share experiences and collaborate; just look at the success of online communities like Reddit and YouTube. Franchise owners can foster a sense of community through both online and offline platforms. Creating forums, social media groups and regular franchisee meet-ups can help build strong relationships and a supportive network. Engaging in local community events and initiatives can also strengthen the brand’s presence and appeal within the local market.
8. Utilize Data-Driven Marketing Strategies
Data shows that Gen Z responds well to personalized marketing efforts that leverage data insights. According to a consumer trends index, a large portion of Gen Z either expects personalized marketing or is willing to pay more for it. Franchise owners should invest in data analytics to better understand young consumers’ preferences and behaviors. This can inform targeted marketing campaigns, personalized offers and tailored communication strategies. Utilizing customer data responsibly and transparently can enhance marketing effectiveness and build trust with a generation that values privacy and ethical data use.
Appealing to young Gen Z consumers and potential franchisees requires a multifaceted approach that aligns with their values and lifestyles. Franchise owners can effectively attract and engage this emerging generation by leveraging technology, fostering authentic communication, promoting diversity and inclusion, emphasizing social responsibility, offering flexible business models, highlighting entrepreneurial support, building community and utilizing data-driven strategies.
While these tips are not guaranteed to produce a certain level of response, adopting any number of them demonstrates a desire to innovate and remain nimble in attracting a new pool of customers and franchisees. Adopting these strategies can help ensure relevance in a changing market and position franchise owners for sustainable growth and success in the years to come.
— Tim Conn is the president and co-founder of Image One USA, a commercial cleaning franchise that trains franchisees in all facets of the business, including sales, operations and quality control. Based in Rolling Meadows, Ill., Image One has franchise locations across the Chicago region and around the U.S., including Cincinnati; Denver; Fort Worth, Texas; Orlando, Fla.; and southwest Florida.