Latest news with #franchising
Entrepreneur
20 hours ago
- Business
- Entrepreneur
Why Gen Z Is Ditching Corporate Jobs for Franchises
Young entrepreneurs are changing everything in franchising from training to marketing — and they're teaching older generations a thing or two along the way. This story appears in the July 2025 issue of Entrepreneur. Subscribe » Picture it: An aspiring franchisee sits in an audience, listening to a franchise CEO speak. Now, a question: How old are those people? A generation ago, the answer would have been easy: The aspiring franchisee is a late-career corporate professional looking for a change, as is the audience, and the CEO is a near-retirement leader who's spent a lifetime in franchising. That was the stereotype, anyway, and it often proved to be true. But by the time Katie Webb wanted to be a franchisee, things looked different. Four years ago, when she was in her early 30s, she attended a Stretch Zone discovery day. That's when she heard from Stretch Zone CEO Tony Zaccario, who was in his late 20s. "Every time I'd write down a question to ask, it would get answered," Webb remembers. "Tony was a big part of it. Him being young and energetic and so forward-thinking — he assumed the questions you would have, and he had the answers for you." Fast-forward to today, and Webb is a multi-unit owner with five Stretch Zone locations in Florida. "I would say a good 50% of our franchisees are below 40," says Zaccario, "and you probably have around 10% in the age-30 range." Some are even in their 20s. And franchising at large is starting to look different. Related: Think You're Too Young to Own a Franchise? Think Again. Traditionally, becoming a franchisee was considered a "second act" business venture, but lately, certain types of franchises — those with lower fees and simpler operation parameters — are seeing an increasing number of young applicants. These "first act" entrepreneurs are being exposed to the business model earlier in life, with colleges and universities offering franchising certificates and specialized programs in franchise management. These burgeoning franchisees have also come of age in an era that included the Great Recession and pandemic layoffs, contributing to the belief among nearly 20% of Gen Z that companies have no loyalty to employees anymore. Their instinct is to carve out their own path: 53% of skilled Gen Z knowledge workers are already freelancing, according to a report from Upwork, and among Gen Zers, 70% of respondents to a Fiverr global study are either actively freelancing or plan to do so in the future. "The days of people working for major corporations and waiting years and years for an opportunity for a promotion — I don't think that is attractive to a lot of these franchisees," Zaccario says. "When you are able to deliver a simple business model that doesn't require a lot of money or experience, it falls into what they're looking for." Meanwhile, the franchise industry is evolving to make it more accessible to young people. This is according to Daniel Hayes at Hundred Acre Consulting, which has advised entrepreneurs and nonprofits since 2008, and works with more than 800 franchises in 78 industries. Not only are there more low-cost franchises than ever before, he says, but it's also gotten easier to launch new franchise concepts. "Years ago, you'd have to have several actual businesses working, maybe a little longitudinal information, maybe two or three years of net revenue generation," he says. "Now, if the business model makes sense and it can be taught and duplicated and be put into a territory with the demographics to help it work, you don't really need to have five or six franchises operating to say it works." The sea change isn't complete; people under 35 still only own close to 8% of franchises. "But I'm a big believer in Moore's law — technology doubles itself every two years — and the franchise industry is advancing and doubling," he says. "So I wouldn't think it's going to take too long." Related: How Franchises Can (and Should) Attract Millennial and Gen Z Franchisees Where are all these young, aspiring franchisees coming from? Here's one place: boot camps. In 2018, Hayes attended an entrepreneurial boot camp that helped MBA grads go into franchising. It taught a very specific strategy: Buy three or so licenses from the same franchise to get a price break, and then build toward selling them in two or three years. "You're creating income for yourself for that period of time, and at the end of about seven years, you've tripled or quadrupled your initial investment," Hayes says. "We're talking service, usually, because these folks don't have a whole lot of money." Some younger franchisees get started with family money, he says, but the majority go for Small Business Administration approval and financing with a credit score over 690 and one-third of the loan amount. "A lot of franchises today are under $150,000, so you can do SBA express loans," he says. "It's easier for people who don't have a lot of money to step into one of these things." Frios Gourmet Pops is that kind of franchisor. A modern take on the classic ice cream truck, Frios sells gourmet pops from tie-dye-wrapped vans, trailers, and carts. The brand had 18 locations when CEO Cliff Kennedy bought it in December 2018, and now has more than 110, with an increasing number of franchisees younger than 30. "I think it's in this crazy world that they've seen their parents lose their job or whatever, and they want to control their own destiny," Kennedy says. It doesn't hurt that a franchise unit costs $37,500 (with total initial investment from $59,548 to $101,417), and that Frios pops are easily Instagrammable — enabling these new owners to use their social media savvy to grow their business. Kennedy, who is 42, says Gen Z's hyperfocus on self-reliance is distinct from what he sees in Millennials, Gen X, and Baby Boomers. "It's different from somebody coming out of corporate and it's their first job that's not a W-2," Kennedy says. "This generation is less apprehensive about the future. They're 'full steam ahead, let's get multiple territories.'" And they can be serious earners, according to Thomas Scott, founder and CEO of Home Run Franchises, whose brands include Up Closets and The Lighting Squad. While younger owners make up only about 30% of his franchisees, they're turning out to be about 60% of the top performers. "If they're in college, the traditional career path of Gen X and Baby Boomers, that's a pipe dream," Scott says. "They sit around and go, 'Who the hell thought that up? Why would I want to spend 40 hours in a cubicle farm paying my dues? I've had access to YouTube since I was a kid, and I know that if you want to do anything in life, you start a business.'" Related: I Wish I Received This Advice as a Young Entrepreneur Image Credit: Zohar Lazar There's another reason that young people are interested in franchising: Entrepreneurship has become a big part of online influencer culture. In 2023, a survey by Junior Achievement USA and EY revealed that 76% of teens would be likely to consider becoming an entrepreneur, with their top inspirations including social media influencers and successful businesspeople they see in the media. Micro-influencers — noncelebrities with 10,000 to 100,000 followers — have a particular impact on Gen Z, according to Jay Sinha, an associate professor at Temple University's Fox School of Business, whose recent study published in the Journal of Brand Strategy investigated the characteristics that make Generation Z a different type of consumer. "They are a new consumer in the U.S. market and are very different from past generations," Sinha says. "The traditional ways to appeal to consumers are not as effective with this audience, which is why it's imperative that companies adapt." Past research has shown that Gen Z's peers, not authority figures, are most likely to get their attention. This generation spends significant time online, seeking virtual connections and virtual friendships, and especially values authenticity — which is where micro-influencers excel. "Generation Z finds micro-influencers to be more credible," Sinha says. "Micro-influencers communicate and engage with them on a very personal level, which heightens engagement." Related: 15 Young Founders Rethinking Everything From Artificial Intelligence to Carbon Removal, Sustainable Fashion But of course, if a franchise wants to attract young franchisees, it can't just start paying some influencers. A more fundamental shift is required. At Stretch Zone, Zaccario says, they've had to change the way the brand communicates — like making training materials more fast-paced and putting new information into short-form videos. "When we tracked it, people's attention span —the ability to finish even a 30-minute video — was dropping steadily over time," Zaccario says. Anything more than a few minutes, he says, is not optimal in a world where younger people expect short, effective, immediately relevant content. Frios Gourmet Pops has seen another interesting shift: Although Gen Z franchisees are fluent in social media marketing, they need a lot of training to market outside those channels — such as learning who to call at a country club, or who to ask for when contacting a school. "We're training them on how to connect with people," Kennedy says. "Like, 'Here's how that conversation is going to flow. Here's an email template for a school, or a little bit different language for a business. Here's a sample LinkedIn message.'" But even as it trains franchisees in more traditional outreach methods, Frios Gourmet Pops makes sure to encourage Gen Z owners to express themselves in ways that feel natural, realizing how beneficial that kind of energy is for the whole company. Sometimes young franchisees ask to include the CEO in whatever they come up with, and Kennedy is game. "One of them said, 'Hey, Cliff, put on these glasses and do this,'" he recalls. "Then she said, 'Come look at my Instagram.' It was all these dances and things. She was doing it all. They get a following and people get excited about it. That's where they interact." This enthusiasm even flows upward to Kennedy's older franchisees. "It's a breath of fresh air," he says. "The younger franchisees post each other's things from online. The older generation, once they see how many likes and comments these posts are getting, say, 'Wow, this is how I want things to be for my business too.'" Embracing that mentality ultimately translates into real-world marketing ideas, he says: "They literally get custom shirts that they make themselves. They're getting sweaters and T-shirts that personify who they are. That's where the younger generation is. They're happiness-hustlers." Related: Gen Z Is Redefining the Workplace — and Companies Must Adapt or Face Losing Talent Here's something that doesn't change across generations: New franchisees want to make money. But Gen Z thinks bigger than previous generations — or, seen another way, Gen Z carries more financial anxiety and is seeking more stability. Empower recently found that, although most Americans say a salary of $270,000 indicates financial success, Gen Z's expectations are much higher. To be comfortable, they want to make nearly $600,000 a year. Meanwhile, their reality falls far short of that, with the median income for full-time wage and salary workers ages 25 to 34 projected to be about $61,500 in 2025. When you first start franchising, that $600,000 goal may be a stretch, but it's totally possible to be 24 years old, buy a pet-walking or a heat-pump-cleaning location, and make $200,000 a year. "The business may generate $300,000 or $400,000 a year, and you'll be doing 50% or 70% of that in net, depending on how many people you hire to help you," Hayes says. "Even if you hate it after five years, you sell it. What's the difference? You're 29." Gen Z doesn't think about that kind of plan as a big risk, Hayes adds. Their mentality toward taking chances is far different from Baby Boomers and Gen X. "The W-2 world does not hold the kind of draw and mythical allure for that generation that the corner office did for us," he says. "It seems much easier for them to do it than it was for us." Kennedy, the Frios CEO, also says he sees this difference play out in the way his Gen Z franchisees think, from the instant they sign on the dotted line. "We have a lot of first-time business owners, and at that last moment before they sign on, they think, Oh my goodness, I'm betting on myself," he says. "The younger generation has never felt that. They're like, 'Let's go. I get to make all the calls? Let's do this.'" To Webb, it all comes down to another word that young people love: balance. She wants to make money, but also enjoy her life outside of work. "I'm coming off that hustle mentality," she says, now five years shy of her 40th birthday. "When I was 20, it was work all the time, hustle, hustle, hustle. But you have to know: When is the stopping point where I've worked really hard and set things up so they can run themselves?" Related: Why Gen Z Is Ditching the Corner Office Dream — and How Businesses Can Adapt
Yahoo
a day ago
- Business
- Yahoo
Subway appoints Jonathan Fitzpatrick as new CEO
Subway has appointed Jonathan Fitzpatrick as its new CEO, effective from 28 July 2025. Fitzpatrick has more than two decades of experience in franchising and the quick service restaurant sector. His most recent role was as president and CEO of Driven Brands, where he led a team that achieved 17 consecutive quarters of same-store sales growth. His previous experience includes senior leadership positions at Burger King, where he served as executive vice-president and chief brand and operations officer. During his tenure at Burger King, Fitzpatrick was instrumental in executing the largest menu overhaul in the brand's history, streamlining restaurant operations and modernising the global image of the brand. In his new role at Subway, Fitzpatrick will collaborate closely with interim CEO Carrie Walsh to facilitate a smooth transition. Fitzpatrick stated: 'I'm honoured to lead this iconic brand that has been serving guests around the world for 60 years. 'Subway has a solid foundation built on decades of providing freshly made, better-for-you options with value and convenience. 'I'm excited by the opportunity to shape the future of the company, working alongside our valued franchisees and employees to help drive increased sales and franchisee profitability and grow our brand around the world.' In November 2024, Subway announced that its global CEO John Chidsey would retire at the end of the year. The company then appointed Carrie Walsh, who was serving as Subway's president for Europe, the Middle East, and Africa as interim CEO. "Subway appoints Jonathan Fitzpatrick as new CEO" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
5 days ago
- Business
- Forbes
3 Lessons In Leadership For Women In Franchising
Gigi Schweikert, CEO at Lightbridge Academy. I never imagined that my time in a toddler classroom would be the foundation for a future in the franchise world, let alone as a CEO. But the lessons I learned while guiding young children in patience, adaptability and clear communication turned out to be the very skills I needed to lead a growing brand. As women in franchising and entrepreneurship, we often underestimate how transferable our experiences are, especially those rooted in traditionally nurturing or service-based roles. My journey from early childhood educator to C-suite executive taught me that leadership isn't about fitting into a mold; it's about owning your voice, your values and your vision. Here are some key lessons that helped me grow, from the classroom to the executive level: Confidence comes from competence and courage. Confidence doesn't require perfection; it requires progress. In franchising and entrepreneurship, many women hold back, thinking they need to be fully prepared before taking the leap. But real confidence grows as you build competence, and it is courage that keeps you going when things feel uncertain. Whether it's learning financials, understanding operations or leading a team, every new skill gained strengthens your leadership foundation. Mistakes aren't failures; they're lessons that sharpen your instincts and strengthen your decision making. Mentorship, continuous learning and asking questions without hesitation are powerful tools for growth. Leadership rewards those who are willing to move forward while still learning. Build confidence by investing in your development and trusting that experience will bring clarity and growth. Your values are your brand. In franchising, consistency is everything, but consistency starts with alignment on core values. Your core values should guide not only how you lead but also how your brand shows up across every location and interaction. Whether you're onboarding a new franchisee, supporting a team member or welcoming a family through your doors, your values shape the experience. They influence how decisions are made, how challenges are handled and how culture is maintained as your business grows. I've worked with many entrepreneurs who entered franchising because the business aligned closely with their personal values. When those values remain at the core of how you lead and make decisions, both your professional success and personal fulfillment tend to flourish in tandem. When values are clear, they become a compass for your brand and a standard others can rally around. Take time to clearly define your core values and keep them simple and easy for others to understand. Elevate others to build the best teams. Leadership is about more than reaching your goals; it's about creating space for others to rise alongside you. In franchising and entrepreneurship, women are still underrepresented in executive roles, which makes it even more important to actively lift each other up. Fostering a culture where women feel supported, seen and empowered creates a ripple effect that strengthens teams and businesses alike. That can start with something as simple as mentorship, sponsorship or offering a seat at the table to someone with potential. Finding a mentor, whether it's another franchisee, a seasoned business owner or someone on your franchisor's leadership team, can also provide you with the perspective, encouragement and real-world strategies needed to help you become a better leader. A great mentor will challenge you, cheer you on and remind you that growth is a process. Most importantly, they'll give you honest, constructive feedback and expert insight on areas for improvement. It's not just about encouragement, it's about access, opportunity and intentional support. Share your knowledge freely, celebrate other women's wins both publicly and privately and advocate for their leadership behind closed doors. When one woman rises, she clears the path for many more to follow. Building a future where women thrive in franchising starts with how we show up for one another today. In closing, leadership is a journey, not a destination, and the path to the C-suite is filled with valuable lessons along the way. As women in franchising, we have the power to redefine what leadership looks like—not just for ourselves, but for the next generation of women entrepreneurs. By leading with empathy, staying rooted in our values, continuously growing our skills and uplifting other women, we create businesses that can thrive and empower others to do the same. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Zawya
6 days ago
- Business
- Zawya
Emirates Franchise strengthens Japan ties through Expo 2025 Osaka Mission
Abu Dhabi: The Emirates Franchise, an affiliate of the Abu Dhabi Chamber of Commerce and Industry, led a high-level trade mission to Japan from June 18 to 23, 2025, coinciding with Expo 2025 Osaka in Japan. The mission aimed to highlight the advanced UAE model in the franchising sector, reflecting the development of the business environment in the UAE and its regional leadership in this field. The delegation was headed by Her Excellency Noor Al Tamimi, Chairman Emirates Franchise - Board Member of the Abu Dhabi Chamber and included senior representatives from across the UAE's business ecosystem. Among them were Dr. Ahmed Al Shemili, Acting General Manager of the Ras Al Khaimah Chamber of Commerce and Industry, Ms. Hamda Al Suwaidi, Technical Director of the Association, and Ms. Ahood Salah Almenhali, Events Coordinator. During visits to Tokyo and Osaka, the delegation met with the Japanese Franchise (JFA) engaged with economic institutions and companies interested in entering the UAE market. Discussions focused on fostering collaboration, showcasing the UAE's growing franchising opportunities, and outlining the Association's strategic plans to attract global brands and supporting the international expansion of local franchises. H.E. Noor Al Tamimi affirmed that this mission marks a key milestone in strengthening the global presence of Emirati franchising and reinforcing the UAE's position as a hub for innovative business models. 'She pointed out that the participation is a part of the Association's efforts to empower national brands, open new channels for international cooperation, and facilitate the exchange of knowledge and best practices in line with the UAE's goals for international expansion. She added, 'Our engagements with public and private stakeholders in Japan emphasised the Association's role as a key enabler of franchise sector growth. These efforts contribute to building meaningful partnerships that transcend borders and highlight the UAE's appeal as a destination for high-value international brands.' On the sidelines of the visit, H.E. Al Tamimi explored with Mr. Yoshiteru Obinata, Executive Director of JFA, collaboration opportunities and knowledge exchange between the two sides. The discussion covered JFA's structure, which includes over 470 franchisors and 1,286 brands, and its role in advancing the sector through education, training, and sector development. The UAE delegation outlined its strategy to strengthen the global footprint of Emirati franchises and deepen cooperation with global partners. At the UAE Pavilion at Expo 2025 Osaka, an introductory tour was held for both UAE and Japanese delegations, highlighting national achievements in innovation across sectors such as space, healthcare, and sustainability. The Emirates Franchise delegation, along with representatives from the Japan Franchise (JFA), toured the UAE pavilion at Expo 2025 Osaka, highlighting the UAE's efforts in innovation, with a focus on the space, healthcare, and sustainability sectors. During the visit, H.E. Al Tamimi presented the Association's vision to empower local brands and attract leading international franchises, enhancing the UAE's presence on the international franchise map. H.E. Dr. Al Shemili commended the Association for its leadership in organising the mission, while Ms. Sheikha Al Ketbi, Deputy Commissioner-General of the UAE Pavilion, praised the delegation's proactive engagement with Japanese and global stakeholders. The tour included visits to pavilions of other participating countries, where global experiences were explored and knowledge was exchanged on best practices in the franchising sector and sustainable development, reinforcing the Association's international visibility and ongoing efforts to promote Emirati brands on the global stage. The delegation also met with numerous Japanese companies interested in entering the UAE market. Mr. Sho Hideteki, from Japan External Trade Organization (JETRO), expressed full support for facilitating market entry through collaboration with the Association and the Abu Dhabi Chamber. As part of the programme, the delegation participated in the "Prosperous Franchising: From the UAE to Osaka and Beyond" session held at the UAE Pavilion, attended by JETRO officials and Japanese business representatives. The session highlighted the UAE's supportive business environment and franchising opportunities, creating pathways for future partnerships within the Japanese market and beyond. The delegation's visit resulted in tangible outcomes including strengthened cooperation with Japanese franchising institutions, the activation of a partnership agreement between the Abu Dhabi Chamber and JETRO, and the establishment of direct communication channels to facilitate the entry of Japanese companies into the UAE market.
Yahoo
10-07-2025
- Business
- Yahoo
Taim launches franchising in challenge to Cava
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Taim Mediterranean Kitchen, a 14-unit fast casual concept owned by Craveworthy Brands, is launching a franchising program in a bid to capitalize on the explosive growth of the Mediterranean fast casual sector, according to a Wednesday press release. While Taim is a relatively small competitor in the sector, franchising could speed up its geographical expansion by allowing it to tap into operator sources of capital. The brand's initial franchising focus will be on markets in Washington, D.C., Delaware, Illinois, Maryland, New Jersey, New York and Pennsylvania. These are all places where Cava has a significant brand presence, making this push a direct confrontation with the market leader. While franchising is the dominant business strategy in QSR, the fast casual sector is typically led by company-operated models, with Chipotle and Cava being the most notable success. Given Cava's dominance and the significant growth potential in Mediterranean cuisine — Craveworthy cited Technomic data showing a 10.2% year-over-year increase in consumer demand as of Q1 2025 — Taim could ultimately see strong franchisee interest. 'There's clear untapped franchise potential in this space,' Gregg Majewski, Craveworthy's founder and CEO, said in the press release. 'There's still massive opportunity for a concept like Taim.' Taim says its menu, which offers a wide-range of options including vegetarian, vegan, gluten-free and halal dishes, is the key to its brand potential. The company highlighted recent menu additions like Beef and Lamb Shawarma, Baharat-Spiced Pita Chips and Roasted Mushrooms as examples of ongoing menu innovation. But Taim is not the first chain to use franchising in the segment: Taziki's Mediterranean Kitchen, the second-largest brand in Mediterranean fast casual, has offered franchising since 2013, according to its website. Taziki's franchisee base actually peaked in 2019/2020, at 75 stores, shrinking to 59 in 2022 and rebounding to more than 61 since then. But Craveworthy's multi-brand platform could be an asset both in recruiting franchisees and in helping them succeed. In the Mexican fast casual segment, franchising has proven the weapon of choice for brands chasing company-owned Chipotle. But while Qdoba has managed to set up a 500-unit development pipeline, and Cilantro Taco Grill has set up a 100-store growth plan, Chipotle remains far and away the segment leader with 3,697 domestic locations, according to its latest 10-Q. And merely being in a popular segment is not enough to guarantee success, as Roti found out last year when the Mediterranean fast casual chain filed for Chapter 11 bankruptcy protections after rent deferral agreements expired. None of this precludes Taim from establishing a successful franchising program, or growing significantly. But its choice of early growth markets are nearly all Cava strongholds — Cava has more stores in Maryland than Taim has in its whole system — which means the brand will face significant competition from one of the fastest growing fast casual chains in the whole restaurant industry. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
