Lisa Law franchise manager at Snap-on-Tools

The BFA discusses the challenges of introducing young people to franchising and what brands are doing to help them find their future in the franchise sector

Despite some spectacular results from our latest national franchise survey, the franchising industry has a major challenge on its hands, to encourage younger people into the sector.

With decades of experience and a dedication to ethical franchising, The BFA (British Franchise Association) is the UK's go-to resource for franchisors and franchisees. Through rigorous accreditation, educational initiatives, and industry collaboration, we foster a dynamic and sustainable franchise sector. Our strapline, ‘Discover Your Tomorrow,' reflects our commitment to helping new franchisees take their first step towards a successful business future.

Bridging the age gap

Despite strong performance indicators from our most recent survey, including a less than 1% ‘commercial failure rate' and an average turnover per franchise unit of £400,000, it appears this isn't enough to convince today's youth that franchising is a viable business path for them to pursue.

The survey also revealed that the average age of a new franchisee in 2024 was 49 years old, up from 40 in 2018.

On the one hand the figure cements the argument that we are providing a much needed role for mature men and women leaving their first or second careers, possibly after redundancy or maybe even retirement, but it also highlights a gap, that we're not connecting with the next generation.

Franchising 101: Starting in the classroom

It's clear we need to educate young people on exactly what franchising is and where better to start, than in the classroom.

Jane James, founder of children's drama and singing franchise, Little Voices, was recently a guest speaker on the undergraduate Franchising Module, offered by the Department of Entrepreneurship and Strategy at Lancaster University Management School. Lancaster is one of only two universities in the entire country currently teaching the subject.

Following her lecture, where she told them about her business and how it has grown into a successful franchise, Jane reported that students were surprised at the breadth of sectors franchising covered and particularly, the opportunities for women.

Professor Lola Dada, Head of Department for Entrepreneurship and Strategy who invited Jane to speak said: "Jane delivered an exceptional guest speaker lecture; it was a pleasure to observe her innovative approach to enlightening students on how franchising can be used successfully as a strategy for business creation, ownership and growth."

Partnering with universities

Recognising the need to collaborate to achieve our goals, the BFA have some exciting plans in the pipeline with Lancaster University next year, not only to strengthen our ties with the university, but also to unleash some educational creativity amongst their students.

How franchisors are fighting the trend

So, what are franchisors doing to bring more young people into their businesses, are they all finding the same problem or have some found a fix and if so, what is it?

Anne -Marie Martin, founder of children's dance franchise Diddi Dance, uses a variety of methods to educate the public about franchising and to attract new franchisees.

She said: "I do regular talks about franchising at career events in secondary schools, with the local council for their Start Up business network and most recently at the University of East London. I am fortunate that many of the dance teachers I employ to deliver my classes, see the success of the business, and go on to become franchisees."

But it's Anne-Marie's wacky TikTok's that she's becoming best known for. Her ‘originaldiddidancer' profile has 62,000 followers who she educates and entertains about her life and the business. The average age of a TikTok user is 24yrs old. Anne-Marie says: "I was a ballet dancer before I founded the business so leaping about in Lycra is nothing new to me and TikTok has provided a great platform for me to educate young people about franchising, whilst having fun at the same time."

Accessible and affordable - Snap-on's youth strategy

Tool franchise Snap-on Tools appear to be beating the trend and it's not hard to see why.

Lisa Law, franchise manager explains: "We have franchisees come to us from as early as 24yrs old, with young franchisees at times outperforming their more mature counterparts in the first 12 months and beyond."

It's great to hear of young franchisees doing so well, at such an early age.

Lisa explained how they keep young people coming into the business: "We have several incentives that support young people to own a Snap-on franchise. Launched this year, our start-up costs have been reduced to just £9k, for the first time ever in our 100-year history, with a two-year interest free business loan, which Snap-on offers in-house. Our aim is to make our franchise model even more accessible to prospects of all ages and backgrounds."

She continued: "We also have a programme called ‘Second Franchisee' where existing franchisees who are looking to expand can invest in an additional mobile store and employ a ‘Second Franchisee' to run the new territory. Second Franchisees save as they work and under the right circumstances and upon Snap-on approval, may have the opportunity to purchase the route from their employer. We also run a Veterans scheme for anyone leaving the armed forces which many young people can take advantage of."

Some truly innovative practices there, that no doubt other franchisors will bring into their own business models soon.

What happens next?

It is clear we have a long way to go, despite Snap-on's groundbreaking initiatives, and we encourage all franchisors to take their own bold steps to redress the age imbalance. From our side we will increase our collaboration with British universities and continue to run free and low-cost educational courses for anyone looking to buy a franchise or franchise their business. The courses are available via our website and we'd welcome contact from any young person, interested in exploring the world of franchising.

 For more information and our contact details, please visit BFA Franchise