For the first time in history, more Millennials are seeking franchise ownership than Baby Boomers. While Generation X (ages 41-56 in 2021), has shown the greatest share of franchise interest for some years, that share may have peaked in 2020 at 48.2%, based on year-to-date data in 2021 through June.
The Gen-Y or Millennial cohort (ages 25-40 in 2021) is growing rapidly in share, and now makes up the second largest generation of future franchise owners at 24.7%, edging out Baby Boomers at 23.4% of franchise inquiries.
Millenials are already the largest share of home buyers at 37%, according to the National Association of Realtors.
While Millennials (Gen-Y) have outnumbered Generation X in the population for some years, the older Gen-Xers have greater economic assets and more individuals of prime business startup ages. The great news for the franchise industry is that Generation X and Generation Y combine to create a growing population reaching prime startup years in the coming decades.
Boomers (ages 57-75 in 2021) continue to age out of prime business ownership years, and that trend may have been accelerated by the pandemic as seen in increasing recent retirement rates.