By Natalie Velimahitopoulos

As a franchisor, when you get approached by somebody young who is interested in becoming a franchisee or opening your market to youth, it is necessary to establish what the role of a franchisee requires to be and, is someone in their youth the right person for the role of a franchisee in your franchise?

Here are 7 factors that would benefit a franchisor appointing a youthful franchisee:


Youth may want to have their own business but are put off starting one from scratch because they believe they don’t have enough experience or have the right skill set yet. That is where the franchise model comes in. Does the position of a franchisee need extensive work experience that has old school business attitude with transferable skills to add on to or are you looking for someone with new, fresh ideas and drive – someone with ambition to thrive and learn?

There is more to giving a young person the opportunity to become a franchisee than benefiting from their loyalty and bright ideas. They have the power to change the workplace with innovative concepts and resilient energy, something an older person may not have if they have the experience in a former, similar position and may lack the energy and be stuck in their ways with what worked years ago and not willing to engage in new, innovative concepts and technology.

Young people generally have relatively blank slates and do not have habits from previous work environments or cultures that are hard to break, allowing you to have a franchisee that is more willing to follow operations and procedures set out by you and how your franchise works.

A risk of awarding a young franchisee a franchise of their own is that the lack of experience may lead to you needing to put in more time into their training and offer additional ongoing support and mentoring. Training may not just consist of the operations and procedures of the franchise but also the admin and financial part that a young person may not be used to or have experience in.


Young people tend to be a bit more expressive with fresh ideas and may articulate ideas that can be tapped into in order to revive some old habits in the franchise. Millennials, if lucky enough, are educated after completing a course/degree/diploma and know the theories and are ready to put them into practice giving your franchise the benefit of a ready-to-go franchisee willing to put in the extra hours.


With young people being eager to adopt the newest software, technologies and gadgets into their lives, there is no doubt they can suggest more innovative ways in the running of the franchise. The importance of having tech-savvy people in any business, this century, cannot, without a doubt, be ignored. Any company can benefit from those with a natural aptitude for technology. Their ability to adapt and apply technical advancements is far more progressive than those older than them.

Financial Expectations

As young people may have not had a high-paying salary just yet, or any salary for that matter, they may be more accepting of the slow-paced income at the beginning of owning a franchise while giving it the chance to grow.

The barrier to entry due to capital limitations and constraints might be a concern for bigger franchise opportunities as a franchisor and the bank requires 50% unencumbered funds (cash) to invest and apply for a loan (they might not even have a credit record or be creditworthy at this point in time) Franchisor will need to investigate alternative funding options and models for youth franchisees as part of entrepreneur development, joint ventures or tandem franchising options. Low cost franchise opportunities might be ideal for youth franchisees to invest in as this required limited capital and this will proved franchisees with a more cost-effective opportunity and eventually growing the business to multiple units or having the capital to join other franchise brands.


Being young, the potential franchisee may still be surrounded by their parents or a close family network to give them the emotional, physical, and financial support they require to make the franchise business a personal success. As somebody young, not having much experience, or any at all generally appreciates all the support they can get. Getting the franchisor’s support, initially and ongoing would definitely be welcomed and valued, particularly if they have just invested money into it.

Sometimes the support requests may get a bit much if they feel completely in the dark with no practical business background, a strong ground might need to be set between them and the franchisor as to how much hand holding, they can expect.

Practical Shortcut

People between 18 – 25 may have just completed a learning course/degree/diploma and have all the theory behind a business but adding to that, owning a franchise can offer a shortcut to the practical learning of owning a successful business. You would be able to give comprehensive training to a young mind that has just come out of a learning experience that would have not been there if their business were started from scratch. With the franchise offering a high business level of support and training. A proven business model means youth get the advantage of an already successful means to success. An existing customer base’s credibility also gives them a shortcut in marketing operations.

Fewer Personal Responsibilities

Having fewer responsibilities at a young age is a big advantage to running a franchise. Having a smaller family and fewer commitments, allows one to concentrate on their new franchise with fewer distractions and more money to pay the franchise back quicker, allowing for quicker growth.