Opening a franchise is an excellent option for all entrepreneurs, regardless of their background or professional experience. Historically, however, it’s been the domain of older entrepreneurs and career changers.
More recently, however, franchising has started attracting young people’s attention. Today, young entrepreneurs are investing in franchises in huge numbers, and we are heartened by how the trend is going. After all, franchising is a viable entrepreneurial venture that can help young entrepreneurs reach their career goals and build a sustainable business.
In this blog, we will consider why young entrepreneurs invest in franchises and discuss how buying a franchise is an excellent alternative to starting a business from scratch.
The 5 Benefits Of Franchising For Young Entrepreneurs
When it comes to choosing a career path, there are so many benefits of opening and owning a franchise. This is especially true for young entrepreneurs who may be making their first foray into a professional field.
Here are a few of the top perks of owning a franchise:
1. World Class Support
When you bootstrap a business from the ground up, the best advice you can hope to obtain is from a mentor, a SCORE volunteer advisor, or paid professionals.
For young entrepreneurs that lack real world business experience, this can feel like a scary leap of faith that leaves them open to all manner of liability and mistakes.
Starting a franchise, however, is different. Skip the mistakes and go with a franchise to help fast track becoming a business owner. Franchises can offer all the support and advice to help entrepreneurs make a quicker return on their investment without all the trauma. The guidance and support you receive from a franchisor makes all the difference in the world to help achieve profitability fastor.
Franchises offer all of the elements of a world-class support system, including marketing and location support, established administrative procedures, and operational resources. Initial training will include teaching the full operation of the business, setting up your administrative procedures, and marketing the launch of the business. The ongoing support should cover additional plans and perks that contribute to growing the business — human resources help, facility design and leasing advice, equipment recommendations, customer sales and retention strategies, technology systems, administrative procedures, operational resources, growth opportunities, and community networking.
This support system allows young entrepreneurs to launch themselves toward success rather than spending painful years learning how to do everything alone.
2. Access To Successful Business Models
When young entrepreneurs buy franchises, they’re not just buying a standalone business. Instead, they’re investing in an entire, established business model and a set of values.
This is hugely attractive for young entrepreneurs looking to make a good life for themselves.
Because franchises have a predetermined procedure that they require all franchisees to follow, it eliminates much of the guesswork associated with starting and running a business.
Instead of navigating all the trial and error on their own, young franchisees simply follow the predetermined procedures and enjoy access to all the leadership and assistance available within a franchise framework.
3. Room For Growth
While franchises offer an established framework for success, they also provide ample room for individuation and growth.
As you explore the options, think about the kind of lifestyle you want to have with this business. With 3,000 franchises in the United States, you can choose the lifestyle you want from the beginning. When your work contributes to your enjoyment of life, your life will be much more rewarding.
Young entrepreneurs can choose where they’d like to establish a franchise and customize their offerings according to the market segments in their areas.
Instead of hampering individuation, the underlying network that supports a franchise business allows for enhanced creativity and room for expansion without requiring the same risk involved with a startup.
4. Recognized Corporate Branding
Marketing the company is one of the most challenging parts of getting any business off the ground. However, for young entrepreneurs who purchase a franchise, that’s much less of an issue.
When an entrepreneur invests in a franchise with an established, proven track record, they also get access to a powerful franchise network and corporate branding. Since customers already know what the franchise offers, they are more likely to visit and interact with a new business in their area.
This makes getting the company off the ground easier and alleviates some of the stress associated with getting the company’s name out there.
5. Reasonable Investment and ROI Opportunities
Starting a business can be expensive. Some franchises like McDonalds can require over a $1 million dollar investment. Large fitness franchises like Planet Fitness can cost anywhere from $1 million to $4 million to start.
There are many franchise investment opportunities out there in the fitness industry. Franchises provide all the details about the costs to run a business and what kind of return you should expect in their franchise disclosure document. Make sure you really compare franchise opportunities, examine every cost, and look in detail at your ROI opportunities. Fortunately, opening a fitness franchise doesn’t have to cost an arm and a leg.offers the opportunity to start a business with low investment opportunities costs.
Here are two key things to consider when examining the revenue options as part of your franchise opportunity:
1. Income Opportunity & Size on Market
Consider what your franchise clientele will look like. Is the customer base a significant demographic market segment to support you business in the long term? Is the business diversified?
That’s not to say a limited clientele is a negative criterion. But, as we saw with the pandemic, it may increase your financial vulnerability.
2. Recurring Revenue
If the franchise model includes customers who will regularly order a product or consistently book a service, you will benefit from a recurring revenue stream.
How Young Entrepreneurs Can Choose The Right Franchise Opportunity
If you are considering investing in a franchise, it’s essential to do your research and find a business that suits your long-term goals and interests.
Here are a few of our top tips for finding the right franchise fit:
- Find a Supportive Franchisor – The last thing you want us to be on your own with your new franchise. Instead, find a franchisor that offers business, sales, marketing and operations support and will work with you to generate a successful business.
- Find a Franchise that Supports your Long-Term Goals – Today, there are hundreds of franchise opportunities, ranging from beauty to fitness. To find a franchise that you’ll want to work in long-term, choose a business that suits your interests and goals. For example, it will be easier to stay motivated and engaged if you’re a fitness enthusiast and you choose a fitness-related franchise.
- Look for a Franchise With an Excellent Reputation – Last but not least, look for a franchise that can offer you all of the benefits of brand name recognition. The franchise you choose to work with should have a long history of success and outstanding customer service, as well as solid market numbers and a positive outlook for the future.
Recently, Karrigan Niemi became one of Alloy Personal Training’s youngest franchisees to date at 23 years old. Karrigan lives in Atlanta, Georgia and works in digital advertising while finishing up her MBA. Karrigan will be opening 1 unit with Alloy in 2023 and is excited to play an active part in her community!
“Through a combination of personal adversity and her life has given me a deep understanding and appreciation for physical fitness. She understands the importance of physical fitness not only for individuals but the community as well.”
~ Karrigan Niemi ~
Franchising: A Smart Step Into The Business World For Young Entrepreneurs
If you’re a young entrepreneur looking for a way to start your own business and create a life you love, franchising could be an excellent option.
In addition to offering an affiliation with an established brand, franchising is an excellent way to enjoy the benefits of running your own company without all of the overhead, liability, stress, and risk.
Alloy is attracting young entrepreneurs with a reasonable investment opportunity. Compared to other fitness franchises with investment requirements of over $1 million for Planet Fitness and F45 at $400,000, Alloy is a very reasonable investment opportunity of $125,000. With Alloy you can also be profitable from the moment you open the doors with the successful Alloy pre-sale.
Are you still looking for the perfect franchise for you? Click here to learn more about Alloy’s franchise history and opportunities and why we are one of the most successful franchises in the country.
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Article by Suzanne Robb, Alloy COO