Millennials in Franchising: Embracing Corporate Social Responsibility

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Millennials are your future franchisees and they want to invest in brands that give back.

By Sloane Fistel

Any successful business knows that in order to thrive, it must be up to date with its customers’ expectations. Studies have shown that millennials, more than any other generation, place huge importance on creating real social change. They choose to support brands large and small with meaningful corporate social responsibility programs, whether it’s giving back to national and local charities, helping the environment or establishing ethical labor practices.

By 2020, millennials — those who are typically between 20-34 years old — are projected to make up one-third of the global workforce, according to a recent survey by ManpowerGroup. While most brands already understand the importance of marketing to this generation of consumers, which currently boasts an estimated $200 billion in annual buying power, franchise development teams should take note, as well. These are your future franchisees and a robust CSR program will hold just as much weight when it comes to deciding which brand they sign on with.

World Change is Motivator

The U.S. Chamber of Commerce Foundation reports that two out of three millennials are interested in owning their own businesses. And a June 2016 survey by Forbes said 80 percent of millennials are active in their community outside of work. Almost half cited changing the world for the better as a serious goal. Plus, 44 percent said that the opportunity to change the world motivates them to be successful.

The point is this: if you want to attract this generation of franchisees, your brand is going to need more than just a great concept with strong unit-level economics. A strong CSR program will be key to attracting top millennial entrepreneurs. Take Tropical Smoothie Cafe and Spray-Net, two leading franchise brands that are making social change a strategic part of their growth strategy.

Over the past 10 years, Tropical Smoothie Cafe, a leading fast casual cafe concept known for its better-for-you food and smoothies with a tropical twist, has hosted its annual National Flip Flop Day to raise money for Camp Sunshine, a Maine-based organization devoted to providing a healthy, happy camp experience to children with life-threatening illnesses and their families, completely free of charge. To date, the company has raised over $4 million for the organization.

Tropical Smoothie Cafe’s focus on making a real social impact is one of the reasons Nick Crouch, a 30-year old entrepreneur, decided to franchise with the brand. In just four years, Nick has become one of the most successful franchisees in the company’s network and recently was named the 2015 franchisee of the year. Currently, Crouch owns and operates nine cafés throughout Florida and Georgia, with five additional locations in the pipeline, where each have become heavily involved in National Flip Flop Day.

Committed to Social Responsibility

Millennials aren’t just deciding to become franchisees — they’re founding franchised companies that at their core are committed to corporate social responsibility. Carmelo Marsala, founder and president of Spray-Net, started the brand as a young entrepreneur and has made his vision of revolutionizing the exterior painting industry in an environmentally friendly way a reality.

The popular brand offers homeowners an alternative to the replacement of doors, windows and sidings, which often end up in landfills. Landfills create a true threat to human and environmental health, and the brand is focused on reducing the amount of hazardous contaminated air emissions that often happens in landfill biodegradation. As another commitment to corporate social responsibility, Spray-Net’s expert crews also use a specific spraying technique combined with its proprietary water-based industrial coatings to drastically reduce the amount of overspray in the air.

At the IFA Annual Convention in February, Marsala took first place in NextGen’s first FranShark competition after being named one of 20 finalists — among hundreds of applications — in this year’s NextGen Global Competition. Since franchising the model in 2013, Marsala has grown Spray-Net to include 37 locations and is still rapidly expanding across the country.

The bottom line is, emerging and well-established brands will need to make corporate social responsibility a considerable priority as they compete to attract this generation that’s hungry for entrepreneurial success and significant social change.

Sloane Fistel is an account executive at Fish Consulting, a national communications firm specializing in franchise public relations and marketing.