There is a growing number of Millennials who’ve decided to trade their corporate jobs to be their own bosses.
“We are not afraid of hard work! However, we don’t want to work harder than we need to,” Jordan Espeseth, a franchisee of Real Producers says. “We often find creative solutions that allow us to work smarter, not harder, creating efficiency and increased value.”
Why Millennials Are Turning to Franchising
Statistics show that Millennials are increasingly choosing franchising as their path to business ownership. While about 35% of franchise owners are Baby Boomers and 47% are Gen Xers, Millennials make up 18% of all franchise owners, and that number is growing. Millennial business ownership rose 49% between 2023 and 2024, showing that younger entrepreneurs play a more prominent role in franchise ownership.
Instead of waiting for corporate promotions or building businesses from the ground up, Millennials choose a different path. They opt for a framework that allows them to apply their energy, creativity, and values to grow a successful business. This flexibility is a key factor that is drawing more and more Millennials towards franchising.
Austin Kassner, 31, recently invested in his second Spherion Staffing and Recruiting franchise in Illinois. “I won’t speak for all millennial business owners, but my personal style skews towards transparency and a flat organizational structure,” he said. “…I strive to create an environment where everyone has a seat at the table to share their perspectives, especially those closest to the front lines of our service delivery.”
What Millennials Look for in a Franchise
Investing in a franchise comes with a lower startup risk and offers business owners a brand identity, corporate support, and a scalable business model. Financial security is a major draw for Millennials looking to start their own businesses. However, Millennials look for specific attributes when they shop for franchise opportunities.
Low Startup Costs and Financing Options
Affordability remains a top priority for Millennials looking to become franchise owners. Therefore, brands that offer a low initial investment and multiple financing pathways are particularly attractive. Many franchises work with lenders that provide SBA loans or Rollovers as Business Startups (ROBS), offering Millennials the financial access they need to start their businesses without substantial personal capital.
Work-Life Balance and Flexibility
Millennials prefer a flexible work environment that allows them to work in mobile or remote operations. Research shows that this generation wants to enjoy their personal life and bring professional values to their businesses.
Tech-Driven Business Models
Since they’re the first digital natives, Millennials gravitate toward franchises that capitalize on technology to streamline operations, enhance the customer experience, and drive efficiency. Many franchise companies provide digital tools and platforms to help business owners operate more efficiently and scale faster.
Sustainability and Social Impact
A recent study reveals that 94% of Millennials believe businesses should address social and environmental issues. Additionally, 87% are more likely to support brands that advocate for causes they care about. Eco-friendly and community-focused franchises offer financial returns and align with Millennials’ desire to make an impact in their communities.
Best Franchise Industries for Millennials
There are approximately 3,000 unique franchise brands in the United States, which gives Millennials plenty of options to choose from, whether they prefer to invest in a multi-unit business or work as sole proprietors. The top franchise industries for millennials include:
- Health & Wellness
One in four people aged 30 to 44 go to the gym three to four times a week, highlighting Millennials’ prioritization of fitness and wellness. Franchises in the health and wellness sector include big box gyms, boutique fitness studios, recovery clinics, mental health services, and wellness-focused retail, all of which are in high demand and offer scalable business models.
- Home Services
The pandemic and remote work supercharged interest in home improvement services. Home services franchises, such as cleaning, landscaping, home inspection, and property management, offer low startup costs that appeal to Millennials. Many are home-based and resistant to economic downturns.
- Food & Beverage
When most people think of franchising, they think of McDonalds. But the food and beverage sector offers much more than fast food opportunities. Millennials can find unique health-conscious brands in the fast-casual, specialty, and niche food franchises (such as vegan dining). Many of these franchises enjoy strong brand recognition.
- Eco-Friendly & Sustainable Businesses
Millennials prioritize sustainability and can find franchise concepts that support their values. Eco-friendly franchises could include green cleaning, recycling, and environmentally conscious services. These businesses tap into a growing market of environmentally conscious consumers.
- Education and Child Enrichment
Millennials make up 80% of all parents with children under 12. Consequently, they are drawn to businesses that positively impact children’s futures and offer flexible, scalable models. Brands in the education sector may focus on tutoring, child development, sports, or child care.
- Senior Care and Home Health
The aging population continues to drive demand for in-home care and senior services. Millennials may resonate with brands in this sector, which helps alleviate caregiving stress for families and improve community health care.
- Business and Professional Services
Franchises that offer commercial cleaning, staffing services, property management, and consulting appeal to Millennials for their scalability, recurring revenue, and ability to leverage technology.
- Pet Care Services
More than one-third of Millennials are pet owners. Plus, many treat pets like family and are willing to spend on premium services like grooming, boarding, daycare, and veterinary care. Many pet care franchises (like mobile grooming, pet sitting, or boutique services) offer flexible hours, home-based models, and scalable operations, which make the type of work-life balance Millennials desire.
Top Franchises for Millennials
The following franchises consistently rank as strong choices for Millennial owners. Plus, many made our Top 200 Franchises List for 2025.
Health and Wellness
Home Services
Food and Beverage
Eco-friendly and Sustainable Businesses
Education and Child Care
Senior Care and Home Health
Business and Professional Services
Petcare Services
Each franchise on the list provides a unique value proposition. Whether it’s low-cost entry, the opportunity to make an impact in the community, or a clear path to profitability, do you research..
How to Choose the Right Franchise
Assessing a franchise’s financial potential ensures your passion pays off. Even if a franchise aligns with your values, you should first evaluate market demand and long-term scalability. Millennials should examine each brand’s Franchise Disclosure Document (FDD)—specifically Items 7, 19, and 20—to evaluate startup costs and gross earnings.
Here are some of the key financial metrics to examine before you invest:
- Return on Investment (ROI) — ROI measures the profitability of a franchise investment by comparing the net profit you earn to the total amount you initially invested. Franchises with higher ROIs generate strong returns relative to what you spent to launch and operate it. Read about how to evaluate franchise ROI before you invest.
- Break-even Point — The break-even point is the time it takes for your franchise’s total revenue to equal its total costs. Reaching break-even represents a major milestone because it indicates that future sales can generate profit. Depending on the brand and business model, it could take months or years to reach the break-even point.
- Gross Profit Margin — Gross profit margin represents the percentage of revenue left after deducting the direct costs of providing your franchise’s goods or services. A healthy margin signals that your business model is efficient and can support operational expenses and growth.
- Average Unit Volume (AUV) — AUV reflects the average annual revenue you can expect to earn at a single franchise location. To calculate this number, you must divide the total annual sales of franchises by the number of franchise locations. This helps you determine a location’s earning potential and gauge expected sales performance. You can often find this number in Item 19 of the FDD.
- Royalty and Marketing Fees — Most franchises require ongoing royalty and marketing fees, or payments to the franchisor. Fees are typically based on a percentage of gross sales and support the brand’s overall operations and innovations. National marketing fees fund campaigns that promote the entire franchise system.
- Franchisee Experiences — Reaching out to current and former franchisees can offer you deeper insights into your monthly expenses, profit timelines, and potential challenges at different points.
Steps to Get Started with a Franchise
The research phase is just the first step in launching a franchise. Be sure to use our extensive data to help you find the right match for you. You can fill out forms for any franchise that appeals to you. After you fill out a form, you can expect to be contacted by a brand and invited to attend a franchisor’s discovery day. You’ll meet corporate team members here and learn more about the brand.
Additionally, it’s crucial to consider your financing options as you explore. We have tons of funding resources to help you figure out a financial path. Fortunately, many franchises offer training programs, marketing support, and operations manuals to help new owners ramp up quickly—even those with little or no previous business experience.
