Franchise Candidates: A Changed Mindset

A look at today's franchise candidates will reveal they are more sophisticated, better educated, and more technologically advanced than ever before. In addition, and even more so because of the economic downturn over the past few years and subsequent slow recovery, they are extremely cautious.

Today's candidates are spending more time researching opportunities, and doing so at a much slower pace. In order to be diligent in the process, more time is spent online pouring through page after page of information, constantly bookmarking, and moving back and forth from new information to saved information. They're comparing notes with other franchise candidates on social networking sites. As well, they're gaining invaluable insight monitoring online discussion groups and forums.

Ultimately, today's franchise candidate desires and needs to be certain the franchise opportunity is as close to perfect for his or her situation, as humanly possible. In the past, and especially after previous recessions, franchise candidates took their capital gains and invested in a franchise opportunity, many times leaving the principal investment untouched. There was a sense of throwing caution to the wind because they were investing profits. Many times unheard of profits, at least by today's standards. Does anyone remember when money markets kicked out 17% profit margins?

Unfortunately, many individuals looking at franchise opportunities today are looking at things differently. They have to. Many are transitioning corporate executives staring at the back end of illustrious careers trying to squeak out just ten more years before retirement. Facing the challenge of younger talent, new technology, and a rapidly changing business environment, many opt to "buy" a job and explore franchising and small business ownership.

What Has Changed?

Here's the difference between our most recent recession, and of those in the past. As huge fortunes have been lost, and large gains have not been realized in current financial markets, today's candidates are forced to invest all or part of their remaining nest egg in order to enter the world of business ownership. Of course, everyone knows and fully understands the risks involved in owning a business. But in yesterday's business environment, many franchisees and business owners were "gambling" with profits.

Certainly, no one wanted to lose money in a business venture. But, many had fallback positions with funds still in retirement accounts and of course, if they had to, employment. For many of today's candidates, failure is not an option because fallback opportunities are fast becoming non-existent. Actually, I believe many of today's candidates might not have even considered franchise or small business ownership in the past.

So, as many individuals explore their options, they will focus more and more of their efforts online. Franchisors must embrace this fact, and dedicate more resources to the internet and look to social media to complement, not replace, their traditional franchise marketing strategies. By doing so, they'll realize multiple benefits for their entire system including:

  • Creating or further developing brand awareness with franchise candidates (and consumers alike)
  • Generating franchise leads that are genuinely interested in exploring what franchising and small business ownership has to offer, and how a particular concept may be the vehicle to achieve their goals and objectives
  • Establishing an interactive environment of communications and information sharing that will become the backbone of future franchise relationships throughout franchise systems

In the past, many franchise candidates viewed franchising and small business ownership as a way of achieving their wishes, hopes and dreams, regardless of what those may have been. Today, it's more about goals and objectives, and necessities. We, as an industry need to fully realize this, and understand the mindset of today's franchise candidate.

Published: May 12th, 2011

Share this Feature

Recommended Reading:

Comments:

comments powered by Disqus
Firehouse Subs
SPONSORED CONTENT

FRANCHISE TOPICS

Premium Services

Proven Match Business Opportunity

Proven Match
Proven Match provides science-based insights and screening tools to...

Franchise Consumer Marketing Conference Business Opportunity

Franchise Consumer Marketing Conference
June 19-21, 2018. Intercontinental Hotel, Atlanta (Buckhead), GA. An...

Fish Consulting Business Opportunity

Fish Consulting
We are a national PR and marketing agency that specializes in helping...

Multi-Unit Franchising Conference Business Opportunity

Multi-Unit Franchising Conference
Make deals with the most powerful players in Multi-Unit Franchising. Our...

FranConnect Business Opportunity

FranConnect
FranConnect is the #1 provider of franchising solutions in the world with...

AXIS Integrated Business Opportunity

AXIS Integrated
With over 25 years of experience in the franchise industry, AXIS...

Hot Dish Advertising Business Opportunity

Hot Dish Advertising
From lead generation to increasing sales, Hot Dish Advertising is the pro...

Qiigo Inc. Business Opportunity

Qiigo Inc.
Qiigo unifies digital marketing for national brands and their locations,...


Franchise Update Magazine

A targeted, quarterly magazine that takes CEO's, VPs and Sales Executives to the cutting edge of franchise development.


Share This Page

Subscribe to Franchise Update Sales Report

A Franchise Update Media Production
Franchise Update Media
P.O. Box 20547
San Jose, CA 95160
PH. (408) 402-5681
In Loving Memory Of Timothy Gardner (1987-2014)

Copyright © 2001 - 2018.
All Rights Reserved.