The world is constantly changing, and success will only be achieved through adaptation. The new faces of franchising are exciting, diverse and innovative, adding depth and value to the sector and helping units across the UK to keep up with the latest franchising trends.
One of the biggest pros of working in the franchising industry is that it’s a dynamic, ever-developing space. It’s a sector that knows how to move with the times, and that’s why so many franchisees and franchisors are able to claim profitability, year after year. Discover the new faces of franchising, creating growth in a sector which welcomes them with open arms.
The changing faces of the franchising sector
The faces of franchising are evolving all the time, and new demographics are being introduced and accommodated for on a regular basis. Though changes in business aren’t always easy to navigate, keeping pace with society is imperative when it comes to staying relevant and creating profitable opportunities.
The franchising sector is becoming more and more inclusive, with franchisees of all backgrounds making investments. This rising inclusivity level is also driving profitability, because the industry is making space for brilliant, diverse minds, and leading the diversity in business charge. In particular, younger people are getting involved, more women are making investments, and the number of franchisees from minority backgrounds is rising.
[The fact] that franchising is open to all has helped franchising reach record levels. [...] Franchisors were quick to recognise the value of multiple demographics a long time ago: put simply, there are a lot of different businesses looking for different personalities and passions to take on their franchises.
Diversity and inclusion in franchising is elevating the sector
Diversity and inclusion in franchising isn’t just a box-ticking exercise. Employing a wide range of people, with a wide range of life experiences, skills and abilities, is proven to better the overall performance of a business. To encourage diversity in the workplace, franchisors and franchisees alike should be educating their employees, and in particular, providing resources to recruiters. Here are just a few of the biggest advantages that come with a diverse workplace:
- New, unique perspectives on business ideas, issues and marketing tactics, increasing overall profitability
- The creation of a varied team of people with different talents, experiences and skill sets, who work well together and complement one another
- Improved cultural insights, and resultant improved customer engagement
A diverse organization builds stronger and more relevant ties to the communities a company serves. As franchisors are working across multiple states and communities, having a company that reflects and understands those diverse communities and markets is a critical success factor.
—International Franchise Association
A look at the new faces of franchising
>> Read more:
- Women In Franchising: Stats and Insights About a Rapidly Changing Industry
- Women in franchising: Why female franchisees are rising
- Gender pay gap in franchising
- Franchise Success Stories: Women in Franchising
- Mythbusters: There's No Such Thing as a Working Mum
- Understanding Your Rights to Maternity Leave as a Franchisee
1. Women in franchising
In 2018, 37% of all new franchisees were women, and 65% of people employed in franchising were, too [British Franchise Association]. This figure has only increased since. 88% of female franchise owners said that they enjoyed owning and running their franchise businesses, with three out of four recommending their franchise to other potential investors [Franchise Business Review]. The benefits of injecting gender diversity into the sector via the rise of female-owned franchises include:
- An increase in creativity levels
- Better employee engagement
- Better customer understanding
- Stronger mentors
- Increased profitability
The rate of female entrepreneurship [in the franchising industry] is well above the national SME average, testament to the franchise community’s drive to empower women into business. We’ve come a long way since 2005, when more than 80% of newcomers were male.
—Pip Wilkins, British Franchise Association
>> Read more:
2. Millennial and Generation Z franchisees
Broadly speaking, people born between 1981 and 1996 are considered to be millennials [Pew Research Centre]. Coming of age as the internet did, millennials are considered to be a dynamic economic force, and their inclusion in the franchising sector has many different advantages. Also beginning to enter the workforce and, in some cases, join the franchising world, are members of Generation Z, the oldest of which are in their early 20s.
In 2018, 18% of all franchisees were under the age of 30 [British Franchise Association]. While younger people might have less experience to offer, they will often come with a hard-working attitude, buckets of enthusiasm, and all the determination they need in order to learn and succeed. Where is a better place for young, determined entrepreneurs than a sector in which experience often comes second to suitable personality traits? The benefits of working with younger entrepreneurs include:
- Accessing tech-savvy talent with social media management skills
- Enhanced creativity levels and fresh ideas
- A team that’s willing to collaborate
- Team members who are open to being mentored
- Appreciation of flexible working conditions
- Willingness to take calculated risks, motivated by determination to succeed
3. Minorities in franchising
The number of people from minority groups who are involved in the franchising sector is growing rapidly, especially as the industry develops a diverse reputation and continues to welcome talent. A survey of 2,231 workers across England [Trades Union Congress] found that:
- 33% of BAME (Black and Minority Ethnic) workers felt that their job applications has been unfairly turned down as a result of racial discrimination
- 29% of BAME workers felt that they had been unfairly overlooked for a pay rise as a result of racial discrimination
- 28% of BAME workers claimed that they had been unfairly turned down for promotions as a result of racial discrimination
With these figures painting a difficult picture for BAME employees, it’s no surprise that many are looking for flexible franchising opportunities, in which they can be their own bosses and feel protected by the standards set out in franchise agreements. For many minority groups, the franchising sector is an opportunity to take back power and reach profitability, while also creating important change.
Become a franchisee and join a growing, variety-filled industry
The new faces of franchising are at the top of their game, and if you feel you have something to add to the thriving franchising industry, you shouldn’t hesitate to get involved. Explore a dynamic range of available franchising opportunities via Point Franchise’s UK franchise directory.
Cara Squires, Point Franchise ©