Move over millennials – it’s Gen Z who are leading the charge for entrepreneurship.
As Generation Z, those born between 1997 and 2012, step fully into adulthood and the workforce, they're beginning to reshape the business landscape in a profound way.
In 2025, the age range of Gen Zers is between 13-28. While the historical age range of franchisors has always been 35-55, this generation has proved that it does follow the road most traveled and a significant amount of high profile Gen Zers have paved the way for this generation of entrepreneurs:
Some Famous Gen Z Faces
| Name | Born | What They Are Known For |
| Aadit Palicha and Kaivalya Vohra | 2002 | Founders of Zepto, a food delivery service. |
| Advait Thakur | 2003 | Founder of Apex Infosys India. He started using computers at age six and launched his first website at age 9. |
| Mr. Beast (Jimmy Donaldson) | 1998 | YouTube Content Creator who was listed on Forbes in 2024 as being the highest paid YouTuber in the world. |
| Greta Thunberg | 2003 | Thunberg is a Swedish climate and political activist who has challenged the world leaders for their inaction climate change. Regularly featured on Times Most Influential lists, she has also been nominated for the Nobel Peace Prize |
| Kylie Jenner | 1997 | Although most famous for belonging to the infamous Kardashian family, the youngest Jenner sibling become one of the world's youngest billionaires in her her early 20s due to the phenomenal success for her cosmetic brand, 'Kylie Costmetics'. |
Raised on a digital diet of smartphones, social media, and startups, Gen Z is resourceful, value-driven, and tech-first. While often associated with freelance gigs, tech startups, and creator economies, Gen Z is also quietly steering toward another powerful business model: franchising.
Franchising, while generally aligned with baby boomers and legacy brands, might not seem like the obvious choice for the current influencer generation who are mindful of their 'brand', however; this sector is uniquely positioned to meet the needs of a younger generation.
With the rapid emergence of an AI economy, the way in which we work is shifting constantly, and Gen Z will play a major role in the ever-changing landscape once they become the largest working cohort in the global economy.
According to International Bulletin Acounting's research, 'The number of Gen Z directors of UK companies has jumped by 42% in just a year, from 171,000 to 243,000 in 2024.'
Why Gen Z Is Drawn to Entrepreneurship?
Millennials were hit hard by the 2008 recession just as they graduated from university, while Gen Z, although relatively shielded by the austerity of the crash, also grew up in the shadow of constant disruption (economic, technological, and societal). They've witnessed traditional 9-to-5 jobs lose stability and have seen the rise of influencer culture, side hustles, and startups.
As a result of huge societal change over the course of the last two decades, it means this savvy generation values independence, purpose, and financial control. A huge percentage have zero interest in traditional employment routes or even having a boss.
According to a 2022 report by Shopify, over 60% of Gen Zers expressed interest in starting their own business, with many actively working on side projects or freelancing.
Entrepreneurship isn't just a dream, it's an aspirational lifestyle choice sold (and glamourised) to this generation by influencers and celebrities alike through the medium of TikTok, Instagram, YouTube and LinkedIn.
However, creating a business from scratch can be daunting and time-consuming. This is where franchising offers a satisfactory middle ground.
Franchising: Entrepreneurship With a Safety Net
Franchising can offer Gen Z what they crave most: autonomy, impact, and financial reward—but without the high risks associated with starting from zero.
A franchise provides:
- A proven business model
- An established customer base and brand identity
- Support in marketing, operations, and training
- Access to networks support and experienced mentors
For Gen Zers wary of the trial-and-error involved in solo entrepreneurship, franchising can be a smart launchpad. It allows them to learn the ropes of business ownership while still having the backing of experienced franchisors.
Moreover, many franchise systems today are more flexible and tech-enabled than ever, aligning well with Gen Z's digital fluency.
What Gen Z Wants in a Franchise
To attract this new generation of franchisees, brands need to understand Gen Z’s values. This isn’t just about offering a “cool” brand; it's about aligning with their worldview.
1. Purpose-Driven Business
Gen Z wants to make money, but they also want their work to have meaning and purpose, while having an impact on wider society. Franchises that champion sustainability, diversity, ethical sourcing are far more likely to attract Gen Z entrepreneurs.
2. Digital-First Operations
Having grown up with TikTok and AI, Gen Z expects intuitive tech, streamlined tools, and digital marketing sophistication. Franchisors that offer seamless systems, data analytics, automation, and social media strategies will have a distinct advantage.
3. Work-Life Balance and Flexibility
Flexibility is a must for Gen Z. In fact, it may be their number one priority in their careers. Since the pandemic, more workers than ever have transitioned to remote or hybrid work. While many big companies have tried to push back to 5-days a week in the office, this has forced a large proportion of the workforce to seek alternative employments that aligns with their own needs and work-life balance.
Franchises that offer remote or hybrid models such as mobile service businesses, or operations with manageable hours are especially appealing to a younger generation who don’t want to be tied into an ‘office model’ for five days a week.
4. Affordability and Accessibility
Low-cost franchises or those that offer financing, training grants, or mentoring programs are better positioned to recruit this demographic as the majority of the younger cohort will be only a few years out of university and still building their saving/financial capital.
Franchise Sectors Set to Thrive with Gen Z
Certain franchise industries are particularly suited to Gen Z values and interests:
| Thanks to social media and wellness influencers, there is a massive audience for those who want to live a ‘cleaner’ and ‘healthier’ life. Think boutique fitness, healthy fast-casual food, or wellness clinics. More so than any other generation, Gen Z is highly health-conscious (we’ve all seen the Stanley Mug trend) and gravitates toward holistic living. |
| With pet ownership at an all-time high among young people, pet care franchises (grooming, boarding, training) are only continuing to prosper. |
| With the rise of climate activism and fears over the future of our planet, now more than ever there is a desperate need for businesses that are focused on sustainability and are environmentally conscious. From sustainable packaging to zero-waste stores, green-focusedfranchises are likely to attract Gen Z investment. |
| From mobile car detailing to home tech support, Gen Z will gravitate towards the flexibility of low-overhead, mobile franchise options. |
Potential Challenges
While the opportunity is ripe, there are challenges franchisors must overcome to engage Gen Z:
- Financial Barriers: Many Gen Zers are still early in their financial journey and working life. Franchisors may need to get creative (i.e. ‘sweeten the pot’) with financing options, partnerships, or mentorship programs.
- Perception Issues: Some in Gen Z still associate franchising with fast food chains like McDonalds and Subway. Re-branding franchising as a modern, innovative pathway to entrepreneurship is the key to attracting young business owners. Smart and creative digital marketing campaigns are the way forward in convincing people in their 20s and early 30s that franchising is a viable path to financial independence.
- Desire for Ownership: Gen Z wants to feel like owners, not operators. Franchisors should look for ways to empower their franchisees to innovate and personalise within brand guidelines.
Franchising’s Future Is Gen Z
In the coming decade, franchising will increasingly reflect the values, tools, and ambitions of Gen Z. With their appetite for entrepreneurship, flair for digital innovation, and demand for meaningful work, Gen Z has the potential to transform franchising into a more agile, sustainable, and inclusive sector.
Here at Franchise Direct, we cannot wait for what the future will bring and are looking forward to seeing the younger generation coming into their own.
If you’re in this cohort, start your journey with us at Franchise Direct UK. We’ve got a comprehensive list of franchise opportunities to get you on the road to success.