Why Most Franchising Firms Aren’t Targeting New College Grads

On October 16, 2009

Why Most Franchising Firms Aren’t Targeting New College Grads

This is a post by guest blogger Don Sniegowski, the founding editor of the daily franchise news site BlueMauMau.donsniegowski.jpg

"There's a youth movement brewing in the franchising world," a recent story in The Wall Street Journal reports. Published in late September, the story explains that as boomers are retiring, franchise brokers and franchisors are putting increasing efforts into recruiting new college grads. But is this a real trend?

The story quotes a small number of franchisors, including WSI, a Canadian-based franchisor of Web consultants, which says it is aggressively seeking young people, and direct-mail franchising chain, ValPak (watch the video interview about its strategy below). But three or four people painting their noses blue do hardly a trend make.


The story does offer more evidence. Several franchise companies were quoted as saying they had joined the Veterans Transition Franchise Initiative, known as VetFran, in order to attract young veterans. But the program gives veterans of all ages a discount off initial franchise fees of member companies, so that doesn’t really track.

Probably the strongest evidence that the story provides is this:

"David Omholt, a franchise broker in Plano, Texas, says about a third of the 200 companies he works with have stopped giving age ranges for their target franchisee and are changing their marketing materials to minimize jargon and depict franchisees of all ages. 'It's quite a departure from the traditional mentality of who to recruit and how to recruit for new franchisees,' says Mr. Omholt."

Omholt, who is also Chief Executive Officer of The Entrepreneur Authority, a franchise brokerage firm that matches franchise buyers for franchising clients, sees a world that could be and points out to franchisors a class of students trained in entrepreneurship pouring out of American universities. He also sees an increase of young entrepreneurs loaded with cash. Omholt provides a persuasive argument because in this credit crunch it is quite believable that franchisors are now looking for any warm body to buy a franchise. But in a recent interview with BlueMauMau, he’s says most franchisors are not targeting new college grads. "To be very clear, my message was not that franchisors are no longer giving direction on demographics. The sweet spot still is, and probably always will be, 45- to 54-year olds."

On October 16, 2009

States Need Bigger Role in Halting Predatory Lending

On January 7, 2004, the federal Office of the Comptroller of the Currency quietly staged a coup against the U.S. states. The move poked a gaping hole in the laws shielding consumers from predatory banking practices, and also coincided with a historic boom in subprime lending. Now we're paying the price. On paper, the OCC regulates the country's national banks. And it doesn't like to share. Five years ago, the agency passed rules allowing it to preempt state laws governing these institutions. That authority applies even if no federal statue exists protecting consumers from unfair financial practices. Big banks lobbied hard for federal preemption because state laws are typically more stringent. By contrast, many legal experts said at the time...


On October 16, 2009

Ralph Lauren Strikes Again! Is “PhotoShop Disaster” Company Policy?

What is wrong inside Ralph Lauren's advertising department? A third ad in which a model's head has been PhotoShopped so that it appears to be as wide as her waist has emerged. This one advertises an online sale. (Click to enlarge -- note that only the women have been changed into bobble-head dolls).


On October 16, 2009

Senate Returns Funding to Hydrogen — What’s Next?

In another reversal to the Obama administration, the U.S. Senate has decided to give back funding to hydrogen vehicle development that Department of Energy head Steven Chu tried to pull back in May The administration has tried to back away from various projects it sees as unreasonable or unnecessary, only to be stymied by other political interests; in September, the Senate insisted on keeping $2.5 billion for cargo jets that Obama, his campaign opponent Sen. John McCain, and the Pentagon said weren't needed. Although the amount involved in hydrogen research is only $187 million, it will give renewed hope to hydrogen advocates. There's no doubt, hydrogen is a sexy technology. Fortune just published a story including details about the hydrogen...


On October 16, 2009

Tech M&A Blip Belies a Long Term Problem

I came across this story about tech M&A with a pointer to data from Thomson Reuters about tech industry M&A activity. As I look at the numbers, and the graphs that fall out, there's a very interesting pattern that brings into question the uptick in activity that seems to be happening.
On October 16, 2009

Good News From Google Fuels Tech-Sector Optimism

The tech industry is getting a boost from Google's 7 percent revenue jump from the year-ago quarter, as well as from better-than-expected earnings reports from IBM and, earlier this week, Intel. Google is apparently feeling confident enough about the economy and its own near-term prospects that it's contemplating one or more acquisitions.
On October 16, 2009

Rivals Dogpile on Amazon

Jeff Bezos named his company after the longest and largest river in the world. So it's appropriate that the past week has shown just how influential Amazon has become in both the online and offline retail spaces, as competitors and the Seattle-based e-commerce giant threw a series of punches and counter-punches.
On October 16, 2009

9 Classic CEO Quotes

CEOs say the darndest things. Regardless of the industry or size of the company, every CEO I've known has possessed the same two qualities: smart and quotable. Why that is, I don't know. But funny, poignant, or insightful, you're not likely to forget their pithy quips. You might even learn something.
On October 16, 2009

Free iPhone Apps Now Free to Charge

Apple on Thursday revised its app store policy to let developers include for-pay features in free apps. This could save developers time in the long run, as they will only have to put out one version of their applications, rather than a free version and a paid-for version. In the short term, however, it could cause developers some grief.