The Franchise Exhibitions and BusinessesForSale.com recently conducted a joint survey to understand the perceptions and concerns of 335 potential franchise investors.
These insights – which reveal important details – will assist franchisors in adapting their marketing messages, support structure, and environmental policies.
Here’s what the survey highlights:
Control of future and quality of life
Out of 335 respondents, 35% were between the ages of 25 – 34, and 32% were aged between 35 –44. This is a fairly young segment, with nearly 70% of prospects being under the age of 44.
The survey shows that Millennials and Generation X are the most prominent age groups interested in investing in a franchise in the UK. This could suggest that prospects are pursuing franchising because it is a logical route towards financial security and stability.
There’s no doubt that the last few years have been challenging. The pandemic and the cost of living crisis have heightened concerns of financial instability. Taking control of one’s future and improving quality of life are obvious pursuits for this demographic.
In the same breath, the number of self-employed (36%) and existing franchisees (15%) actively researching their investment options indicates that there is a strong appetite amongst entrepreneurs to expand their business portfolio with a franchise.
Franchisors across all sectors should understand this and incorporate these insights into their marketing messages.
Healthy and supportive relationships
The survey also revealed that most respondents believe a healthy relationship with their franchisor is extremely important, with the majority stating a franchisor’s commitment to helping franchisees succeed is the most attractive component of a franchise business.
It’s clear that prospects appear to appreciate the importance of building a strong working relationship with the head office team to maximise their chance of success.
Environmental and social responsibility
An interesting insight from the survey revealed that 48% of respondents believe a brand’s commitment to corporate, social, and environmental responsibility is a key factor when deciding which franchise to invest in.
This reflects consumer concerns, verified by a report by PWC, where 83% of consumers believe companies should actively employ ESG best practices. The report also reveals that 76% of consumers stated they will avoid purchasing from companies that treat the environment, communities or employees poorly.
Franchisors should take these insights seriously and ensure proactive steps are taken to employ ESG principles.
Franchise investor concerns
Prospects will always have concerns when it comes to committing to a franchise. The survey shows that additional costs and commitments, finding the right franchise brand, and territory availability are the biggest hindrances to making a final decision.
Based on these insights, it’s crucial that franchisors maintain transparency and highlight how they will support franchisees (for example, helping to negotiate leases).
Territory availability concerns could be attributed to an unwillingness to relocate. The ability to run a business from anywhere is an attractive component that many franchisees are searching for. New franchise brands that are not limited by geography could take advantage of this insight.
Likewise, there is a clear perception that some franchise brands have territory limitations. To combat this, franchisors could highlight resale opportunities, or invest in geo targeted advertising to fill specific territories. BusinessesForSale.com has powerful local, national, and international advertising that can fulfil coverage gaps. Find out more about this by contacting the franchise support team.
The most important interactions for franchise investors
Lastly, the survey reveals that 70% of respondents want to meet with franchise brands face-to-face before making a decision. The Franchise Exhibitions, exclusively supported by the British Franchise Association, offer the perfect opportunity for franchisors to connect with prospects, demonstrating their values, successes, and personality in person.
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