2019 ‘Near-Future Franchisee’ Market Study Report Now Available.
First-of-its-kind national study examines the ‘near-future franchisee’ market, seeking to distill market size and fact check widely held beliefs about franchising. Fasten your seatbelt...
New franchisees are the lifeblood of any franchise system. But, until now, the near-term franchisee market was an invisible world. We understood the micro view of demographic and psychographic ‘profiles’ of what our ideal prospect looks like, but little information existed on the macro view of the size and scope of the qualified near-term franchisee market.
With as much energy and dollars put into attracting new franchise candidates industry wide, and with its foundational role in the growth of healthy systems and the industry overall, our clients, in particular, needed tangible information to know what we’re up against with respect to the size and nature of the near-term franchisee market.
It started with this fundamental strategy question: “How many qualified franchise prospects are we talking about?”
Hand to forehead moment.
With over 3,000 concepts in North America currently, and more concepts minted daily how do we know we’re getting our share? If our approach is sound? If dollars and efforts are being directed in the right area?
As a strategic marketing firm we sought to design a study to begin answering these questions. Or at least shed some light in a pitch black room.
Enter ‘The Next Franchisees and Small Business Owners’ market study.
Originally designed, conducted, and analyzed in collaboration with Regis Corporation, the 2019 update is a meta-analysis of a dozen studies completed from 2013 - 2018 involving over 2500 qualified participants who shared their thoughts, intentions and behaviors with respect to business ownership and franchising in particular.
Participants needed to have a net worth of $250K and up and in some way be actively managing their career – that is an interest in business ownership, advanced degree, making passive investments, changing careers etc.
A Peek Inside
The results continue to be eye-opening and invaluable to any strategically thinking franchise leader seeking to grow their system with velocity. This data allows franchise leaders to direct their outreach programs armed with data on the prospect market found nowhere else. It’s importance is hard to overstate.
The first large analytical swipe segmented all participants into:
From there, the study goes on to explore aspects like 'career satisfaction' rates. The takeaway: Franchise Intenders are the most satisfied with their career.
Gender comparisons with rates of business ownership and franchising. The takeaway: Little statistical difference in rates of business ownership exploration between Men and Women. The main difference being Women going into business with a partner, know who their partners are. Whereas Men who knew they were going into business with a partner, were less sure of who that partner would be.
And so much more.
Changes in Macro Market Forces
The context of this data with respect to other macro market forces like employment rates and stock market performance continues to be analyzed although early results seem to dispel notions high unemployment suppresses peoples’ natural drive toward business ownership. As well as looking hard at what people say they will do and what they actually do.
Debunking the Myths
Take everything you may think you know about franchise owners, crumble it up, and throw it in the trash. The study disproves many of the myths and stereotypes most have thought about around franchise prospects. Think franchise intenders consider franchises as a low-risk way to own a business? Think again. The report found that 49% of franchise prospects perceived “risk” as an opportunity and 23% saw risk as a thrill. Compare this to the 11% of business intenders that perceived risk as a thrill. The reality? Franchise intenders are comfortable with uncertainty and are not afraid to dive right in.
No Shortage of Prospects. A Shortage of Authentic Communication.
While the report suggests there is no shortage or people who would be willing to engage with a concept, what’s lacking are opportunities positioned as true solutions to the problems prospects are trying to solve.
This report and the associated data takes a large step forward to help you bridge those worlds.