Amid Pandemic, Financially-Strong Baby Boomers Grow Share of Franchise Prospects
As the coronavirus pandemic has strengthened many entrepreneurs’ desire to own a business, Baby Boomers in particular have grown in their relative share of prospective franchisees who are reaching out to franchise systems to explore potential investment. Generation X still ranks No. 1 with the largest share of prospects, but that share fell slightly from Q1 to Q2 2020 while Boomers’ share surged higher.
- Baby Boomers grew their share 11% in Q2 2020 over Q1, rising to 27.4% of the prospects contacting franchises across the leading network of online franchise information directory brands. Financial wherewithal might be a key factor here – Boomers lead other age cohorts in the amount of income-producing liquid assets, and rank above average in household income and estimated home value. Boomers, aged 55 to 73 years old, remain the second largest group of prospective franchisees.
- Generation X, aged 39 to 54, is far and away the largest group of franchise prospects, comprising 46.5% of prospects in Q2 2020. That’s down 3.8% from Q1. Gen X also edges out Boomers for the highest average household income, but does not have the same level of income-producing assets as Baby Boomers.
- Millennials, aged 23 to 38, also shrank their share of franchise inquiries from Q1 to Q2, dropping 4.4% to 20.6% of the total. This follows several quarters last year when Millennials were the fastest-growing segment among aspiring franchise owners.
For this analysis, Franchise Insights combined proprietary data from the FranchiseVentures’ demand-generation platform with demographic data from Alliant, a leading provider of U.S. consumer audience targeting and data enrichment and predictive analytics.
The Franchise Insights analysis is drawn from FranchiseVentures, the leading demand generation platform for potential franchisees to thousands of growing franchise systems in the United States and Canada. Its franchise lead-generation brands include Franchise.com, Franchise Solutions, Franchise Gator, Franchise Opportunities, Franchise For Sale, and BusinessBroker.net, and together they provide the largest aggregation of prospective franchise buyers in the U.S.
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Published on Thursday, July 30th, 2020.