Gen Z Acquiring Franchises as Ownership Preference Rises

Young adults, identified as Gen Z, are rapidly acquiring franchise businesses, particularly home-based service models. This trend emerges as they navigate a challenging job market and express concerns about job security due to advancements in artificial intelligence.

Scott Abbott, CEO of Five Star Franchising, has observed this shift firsthand. At his company's yard card rental brand, Card My Yard, nearly half of the owners fall into the Gen Z or millennial demographic. These entrepreneurs often favor working from home and seek ventures with lower upfront capital requirements.

"The through-line is a defined system, a proven playbook and a model you can run without a storefront, a fleet, or heavy capital to get in," Abbott stated. He noted that many young individuals prefer building their own business on a proven model rather than competing for positions that may not exist in the future.

The trend suggests a broader generational shift in career aspirations, with a growing number of young people prioritizing entrepreneurial endeavors and control over their professional futures. Franchising offers a structured path to business ownership that appeals to this demographic.