Canada’s Franchise Expert Weighs in on Opportunities in the Franchise Industry for Young Entrepreneurs with The Globe and Mail
Gary Prenevost, Canada’s Franchise Expert, spoke with The Globe and Mail about the benefits and challenges of investing in a franchise as a young entrepreneur
“We see it as a shifting trend (young people buying franchises),” Mr. Prenevost says. “After four years of university, people are graduating with MBAs, expecting to ‘pick and choose’ [their jobs] and they’re shocked to see the limited number of options out there.”
Young graduates eager to jump into the world of business have plenty of options in the world of franchising; they can find a franchise sector that is suited to their skill sets and interests and invest in a business that they truly enjoy. This flexibility and choice is something that can be difficult to find as a recent graduate scouring the current job market.
On top of flexibility, franchises can be profitable business opportunities that offer the chance to invest in an established brand and have access to a business network with proven marketing tools. These tools available to franchisees give young entrepreneurs plenty of opportunity to learn the ropes of the business world in a hands-on fashion.
“Franchises have systems, processes, discipline and tools and people are learning as much about business as they might have at school, and that’s part of what’s driving the appeal,” Mr. Prenevost says.
Despite these numerous benefits, the biggest challenge for young franchisors is paying off the initial investment for the franchise, which is typically at least $75,000 to $100,000 for an established brand. However, for the motivated and hard working these investments are worth it in the long run. For many young people, getting financial backing from their parents is a viable launch strategy – when you think about it, it ends up being a very similar investment level to a 4-year university degree, but in this case, after 4 years the franchisee has a ton of experience and a thriving business that’s generating an attractive cash flow… . Mr.Prenevost says that the failure-to-success ratio for businesses started from scratch is around 50/50 (Industry Canada 2011 study), whereas about 85% of the 1,300 franchisees that FranNet has worked with over the years are still in business after 5 years.
The popularity of Canadian franchises continue to grow, with the biggest growth seen in the sector of business services and consulting, which saw a 211% increase from 2008 to 2013. This growth is expected to continue for business services and other thriving franchise sectors such as hair care and food. In an economy where degrees are becoming commonplace and jobs scarce, investing in a franchise is a lucrative opportunity for young entrepreneurs that are ready to throw themselves into the real world. For Mr.Prenevost, guiding this younger generation through the franchising process is his career.
About Gary Prenevost, Canada’s Franchise Expert
With over 25 years of entrepreneurial experience in multiple different companies and 22 years of experience in the franchise industry, Gary Prenevost is one of the top franchise consultants in North America. Finding the perfect fit between franchises and potential franchisee’s is Gary Prenevost’s talent, and with his expertise he can find the most suitable franchise for both your lifestyle and financial goals.
For more information on Gary Prenevost and the franchising business, visit https://canadafranchiseexpert.ca/.