WHY PEOPLE BUY A FRANCHISE
September 2012 - Why do most people consider buying a franchise? A recent survey of visitors to the Franchise New Zealand website showed that ‘being my own boss’ was still the number one reason for around 35% of New Zealanders.
The survey of 374 visitors was carried out in August/September 2012 and revealed the primary reasons for buying a franchise were:
|Being my own boss||35%|
|Improving my financial position||21%|
|Having a job||7.5%|
|Investing for when I get older||7.5%|
|Working with a family member||5%|
|Opportunity for financial gain||5%|
In keeping with the ‘age is no barrier’ theme of our latest print issue, we also asked potential franchisees what age group they fell into. As you would expect, the majority (60%) were between 30 and 49, with 20% under 30 and 20% aged 50 and over. Changing demographics suggest that these are two sectors that franchises will have to make special efforts to appeal to over the coming years.
Looking at age and motivation together, we note the following:
Although ‘Having a job’ might not show as one of the major motivators overall, it becomes a significant factor for men in the 50-59 age group, rising to over 15% of respondents. For women, the peak is a little earlier, with 14% of women in the 40-49 age group citing it as their primary reason for buying a franchise. The difference may reflect the desire of women to return to the workforce after raising a family.
For a potential franchisee thinking it might be nice to work with their children, though, you might want to check out their enthusiasm level a little more closely. Working with a family member appeals more to the 30-50 age group, with very little interest from the younger age groups.
Also, it would appear that women start thinking about the financial benefits of buying a franchise sooner than men – in their 30s rather than their 40s. Again, that may relate to returning to the workforce or it may reflect earlier concerns for financial security for the family. It’s a difference that might bear further research sometime.
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