Millennials are changing the franchise business model


Millennials are changing the franchise business model by creating a new set of franchises. The new generation is using the old model as an alternative to precarious employment and even traditional or conventional jobs, but giving it a fresh new take.

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looks good Cody some helpful encouragement from the boss on this jobsite the boss is 23 years old I was looking for something to make a living out of and what better way to do it with your own business the business is a house-painting franchise called spraynet Corrine laundry runs the operation in Vancouver because the last thing she wanted was a nine-to-five job we're always looking for that opportunity to not stay in an office and have a boss tell you what to do all day long others her age clearly feel the same way some like laundry want more out of life than an old-fashioned traditional job and some also like laundry get a helping hand my parents actually own the franchise and I operate it but before everyone born before 1982 starts rolling their eyes and dismissing the bank of mom and dad consider who the Landry's bought the franchise from you're already growing out of this place I'd say so if you look around one on top of the other right so yeah that's incredible meet spraynet founder carmelo marsala 31 years old president and CEO of a multimillion-dollar corporation that he started from scratch with his own money about eight years ago when he was just 23 he and a chemist came up with a proprietary paint formula that works on just about anything vinyl aluminum brick you name it we realized once we formulated this stuff it only made sense to actually manufacture it if we had enough volume I was a franchisee of student painting so I said well the franchise model make sense each spraynet franchise costs a hundred and twenty-five thousand dollars there are 43 of them across Canada Millennials own nearly a third of them that's not a job right it's your own business so you know the whole thing in franchising is you're in business for yourself but not by yourself so they still have that support to fall back on here that support comes from fellow Millennials more than 90 percent of spray Nets corporate employees are under the age of 35 everybody here I feel really old so a brand is relatively strong and stone teaches marketing at UBC's Sauder School of Business she's also a former vice president of Dairy Queen and coca-cola she says Millennials in franchising are a perfect match the franchising space needs new ideas for Millennials because Millennials are becoming the most important customer of franchising brands you get your best intuitive sense of what's going on with a customer group if you happen to have some affinity for that customer group and w saw that firsthand many of its smaller urban locations are managed by Millennials and they are among its most successful franchises so we intentionally thought we're going to actually go out and try and find those folks and bring them into our business and thus we've created what we call our urban franchise associate program an urban location like this would normally have a franchise fee of three hundred and fifty thousand dollars but a and WS millennial program meant 31 year old barmy Malley bought this franchise for less than half that either I had to wait ten more years to accumulate that cash and then to newest or I had the opportunity to go with this program that's why I'm like okay I knew this is it for me malee was also offered special financing extended training and unlike non millennial owned locations she doesn't have to own the building she's allowed to lease it from a NW Canada I always wanted to run my own business she and many others her age are getting a chance to do just that so we have three candidates that are serious for starting in 2018 and hopefully one in the US so Chicago we're just waiting on registration for that state back in Buescher Ville Quebec the poster child for successful young entrepreneurs says his generation is making the most of the opportunity I think Millennials are probably one of the most resourceful generations even though we don't necessarily characterize them as such perhaps it's time to change that characterization Erin saltzman's CBC News Montreal

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