Gen X Claims Largest Group of Franchise Prospects, Ranks High for Income, Home Ownership
While Millennials are the fastest-growing group of franchise prospects, Generation X was far and away the largest age group interested in buying a franchise last year.
Generation X claimed 44.9% share of prospects contacting franchisors through the Franchise Ventures demand-generation platform in 2019. Here is a demographic profile of the 39- to 54-year-old cohort, based on 2019 data:
- Gen X prospects indexed the highest among age groups for estimated household income, with 40.8% earning $100,000 or more a year. That indexes 13% higher than the average.
- Gen X-ers also led the field in asking about high-investment franchises, indexing 4% above average for $100,000+ franchises and 5% above average for $250,000 franchises.
- 78% own their own homes, with 50% residing at the same address for 5 to 20 years. Half of Gen X prospects owned homes valued at $250,000 or more, and 15% were valued at $500,000 or more.
- While Gen X prospects mirrored overall trends for the most popular categories of franchises, the group does index higher than average interest in two active categories: 8% above average interest in Pet franchises, and 5% higher interest in Health and Fitness franchises. It claimed 8% higher interest in the broad Business Opportunities category, which includes turnkey business systems but may not have the same ownership structure as a franchise.
For this analysis, Franchise Ventures combined its pool of investment inquiries with demographic data from Alliant, a leading provider of U.S. consumer audience targeting and data enrichment and predictive analytics.
Franchise Ventures is the leading demand generation platform for potential franchisees to thousands of growing franchise systems in the United States and Canada. Its franchise lead-generation businesses include Franchise.com, Franchise Solutions, Franchise Gator, Franchise Opportunities, Franchise For Sale, and BusinessBroker.net, and together they provide the largest collection of prospective franchise inquiries in the U.S.
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Published on Friday, February 14th, 2020.