The youth of today

The youth of today

Unemployment amongst the under 25s has reached 923,000 - should more be done to bring youthful enterprise into franchising?

With almost one million young people unemployed*, franchising could be overlooking a fresh source of talented franchisees. With the right guidance and support, surely young, enthusiastic people will make excellent franchisees? Franchise consultant Peter Williams said: "Franchising ought to be a good alternative for young people and the opportunity is there for franchisors to address."

So how can young people get into franchising? Managing Director of Recognition Express Nigel Toplis explained: "Franchisors can set up a young enterprise scheme. This would provide a gateway for young people to get into franchising."

One such example is ChipsAway franchisee Paul Fabian, who has taken on apprentices, some of whom would now make ideal franchisees. Paul said: "We pay our apprentices for five days, they work for four and go to college on the fifth - it is part of the Retail Motor Industry Training (Remit) scheme."

This scheme is a great way of introducing young people to the idea of franchising and, in fact, Paul's first apprentice Dean Robert-Evans now hopes to become a franchisee. He said: "I hope to run my own franchise in the future - I knew nothing about franchising before I joined Paul's team, but now I see the benefits of it - you get so much support from operating under an established brand name. I think it's a great thing for franchisors to take
on apprentices."

Franchising, as a concept of running your own business, isn't reaching the young, as Nigel explained: "At a recent lecture I gave at Lancaster University, out of 50 attendees, 20 said they wanted to run their own business - but only one had/would consider franchising. We have a lot to do!" A lack of knowledge and understanding of franchising does, inevitably, hold back the industry's development.

The biggest challenge for young people is raising the finance. Many do not have substantial savings and are reliant on parental patronage. Carl Reader, Head of Franchising for Dennis and Turnbull, said: "A lack of personal guarantees and no previous track record running a business might cause difficulty for young entrepreneurs looking to obtain funding for a franchise." This is perhaps the key reason that young people are overlooked as franchisees. "Unless the government and/or banks find some way of financially supporting young people to go into franchising it will remain very difficult for them to afford it," added Nigel.

Franchisors can do their part in bringing young people into the franchise industry through apprenticeship schemes, and perhaps sow the seed for the future generation of franchisees. The future of franchising is in your hands...

*Office for National Statistics