Golden ages

Franchisor Mike Yeats sometimes feels frustrated that his team of successful franchisees all fall within the 30 to 50 age range. Despite their considerable successes, he knows that older and younger franchisees too could make a huge success of his Racing Challenge franchise - and yet attracting applications from them is difficult.

That feeling of frustration is shared by many other franchisors. Applications from prospective franchisees tend to come from people in their middle years - yet as franchisors will testify, younger and older people often make star franchisees.

So why is the range so limited? When Mike, founder and managing director of Racing Challenge, put the question to his existing franchisees, one came up with a succinct answer: 'Before 30, many people are raising families and getting on the housing ladder - and after 50, many are looking to retirement. That gives them just 20 years to do something with their life.'

That perception that franchises are only suitable for a narrow age group is a huge error, says Mike, who has just appointed a very energetic 23-year old employee whose skills are ideally suited to franchising. Like many other franchisors, Mike is now trying to attract younger and older franchisees to the tried-and-tested business model that is franchising.

One real barrier for younger people, he admits, is capital. Banks are often reluctant to loan money to customers without security, he says. However, he continues, approach the franchise department instead, he says, and the bank may be more accommodating.

Attitudes are more of a barrier, for younger and for older people too. Older people who are simply looking for an easy life till retirement are totally wrong for franchising, Mike points out. But for committed people with life skills, he adds, franchising is too good an opportunity to miss.

Racing Challenge is not alone. Other franchisors too find that applicants tend to fall within a fairly narrow age range: about 80 per cent of the applicants to Sportscoach fall into the 30 to 50 spectrum. Yet younger and older applicants who apply often do phenomenally well, says Jon Bennetts, MD of Sportscoach, which runs weekend sports schools across Britain.

And ironically, it is age that often prompts people to make a move, Jon adds: 'A lot of people who apply have reached the stage in their career where they want a change,' he says. 'Often they reach the age of 40, and realise that franchising is a great option.

Franchising offers an opportunity to leave the rat race and do something for themselves, with the security of a decent company behind them.'

And while fewer applicants are in their 50s and 60s, says Jon, they too bring strong skills to the table: 'In general they have lots of experience and commitment, and have considered the decision carefully instead of just rushing into it.' Sportscoach franchisees who work full-time instead of as a bolt-on to an existing career do particularly well, Jon adds, including those who opt for a franchise following redundancy.

Young people who have often been slow in applying for franchises can also bring huge talents, Jon adds: 'The kids tend to think they're very hip and cool. Many have graduated in PE, or have run lots of playschemes and workshops.'

And younger people who have lots of sports experience but little business experience find a franchise suits them well, Jon adds: while Sportscoach makes the most of their sports coaching skills, it also provides a business framework with strong ongoing support. Banks can help applicants raise the initial franchise fee, he points out, thanks to the strong track record of Stagecoach Theatre Arts plc, the parent company of Sportscoach.

Franchising offers a wonderful opportunity for older people looking for a change, or younger ones wanting to launch a career, Jon emphasises. So why don't more apply? 'There is a lack of awareness of the opportunities franchising can offer,' he believes.

'But actually age doesn't matter to us much, as long as they bring the necessary skills and enjoy working with children. I'd like to encourage both younger and older people to consider franchising as an option, because there are some wonderful opportunities here.'

Franchisees of all ages also derive huge pleasure - and profit - from joining the video games market, says Debra McCabe, franchise manager at Chips, which is now the country's largest video games retailer. Age is no barrier, she insists. In fact, one of the founders was just 17 when he started: 'Nik was working in a shop and simply buzzing with ideas, but no-one would take them seriously,' she points out. So he joined forces with a customer - Debra's husband Don McCabe, now joint MD with Nik Agar - and the pair built a successful business that now has 32 outlets, and has just celebrated its 20th anniversary.

Chips' youngest franchisee was just 19 when he started (see box), but with a well-honed work ethic, says Debra. 'We wouldn't take just anyone simply because they had the money,' she points out. 'We're looking for a real work ethic and the ability to make a success of it too. And of course the sixth-formers love him.'

Yet the oldest franchisees were grandparents by the time they joined Chips: 'They were willing to take the risk on us, even though we were fairly new to franchising. We knew we were tried-and-tested, but that wasn't always obvious to outsiders,' says Debra.

And both young and old make a key contribution to the fast-moving world of games retailing, she adds: 'We find that the younger ones are very pro-active and love setting up promotions,' she says. 'They put lots of energy into their franchise, and the older ones pick up on that.'

And while would-be franchisees in their teens might worry about not having a track record, says Debra, that is not an issue with a franchisor with a rigorous selection process and training programme. Prospective franchisees go through a selection process that involves psychometric testing and assessment by franchise consultants, and then receive thorough training and support in their early days.

Yet while many franchisors make good use of younger people's energy and enthusiasm, some prefer older people's life skills. Being older can be a positive advantage, says Hilary Jones, MD at Flowers Forever, who remembers one 70-year old franchisee who retired only after her second hip replacement.

'Why should being 70 make a difference?' Hilary demands. 'We don't have a cut-off point, though I might think twice if someone was in their dotage. The point is that they should be committed to the business model and to hard work. Their background is not relevant, but their commitment is.'

Older franchisees tend to have more of that commitment than younger people, she believes: they also have the experience and the initiative to carry their ideas through. 'They bring the experience, and they work much harder,' says Hilary. Older people are also happier to work in the evening than a younger person with a social life, she adds.

'Age is no barrier here - but it might make a difference at the younger end,' adds Hilary. 'A younger person might not have the expertise and the life experience to differentiate between marketing opportunities, say. Yet everybody has a limited budget in business, and it makes sense to wait for the really good advertising and marketing and promotional opportunities to come along.'

Other franchisors agree that older franchisees can outstrip their younger counterparts simply because of their life experience. One person who agrees with this is Terry Steel at The Wedding Guide, who boasts a former vicar, ex-housewife, former bank manager and former professional musician among his most successful franchisees.

Thirty-something women who apply often want to work part-time to fit in with childcare, he points out - but like most franchises, The Wedding Guide demands hard work and commitment, especially through the first year or so. And older franchisees tend to get on better with suppliers, Terry adds, many of who are of a certain age and could resent a younger person filled with bright ideas.

'So if somebody in their 30s approaches me, they might not make it,' he adds, 'whereas somebody aged 55 stands a better chance. We have no problem with 50-somethings, though with 60-somethings we would want to check that they'll want to keep going long enough to reap the benefits.'

For older people, a good franchise can build on their experience, Terry says. Franchisees can build a business worth a quarter of a million in just seven to eight years, he points out - an attractive proposition to older people with an eye on retirement. And for energetic younger people, a tried-and-tested franchise makes the most of those talents. Being a 20-something, or even a teenager, or being over 50, is no excuse for not becoming a star franchisee, say franchisors.

CASE STUDY: CHIPS

Paul Whitfield was just 16 when his father first suggested that he take on a CHIPS franchise. The pair were avid customers, and dad Alan was so impressed with the company that he asked Paul if he would like to open his own store.

'But I felt I was too young, and wanted to get some experience under my belt first,' says Paul. So he went to college, worked for an IT company and worked in stock management at his local supermarket for a few years first.

He was 19 when he opened his Guisborough store in October 2003, in partnership with his dad who put up the investment. The support of one of the country's most successful independent and video games retailers was crucial in the early weeks, and being left alone after that was initially quite nerve-wracking. 'But I got more confident very quickly,' says Paul, whose enthusiasm and knowledge of the games quickly won him an enthusiastic local following, especially among teenagers who related to him more easily than they would to an older person. Still just 23, Paul has plenty of time for a thriving career with CHIPS.

CASE STUDY: SPORTSCOACH

George Rettie found his way into franchising almost by accident. After a lifetime in advertising, marketing and management, he started handling the advertising for Stagecoach and soon took on a franchise for Sportscoach, its wholly owned division.

After 25 years of self-employment, the transition to franchising was a smooth one for George, 61, who now has the Cheam and Woking Sportscoach territories as well as running his own advertising business.

'I've always loved sport, and my philosophy is very simple: I'd never ask the kids to do something I'm not ready to do myself first,' he says. 'But I found it simply wonderful from the start, because it's such a marvellous franchise.'

And for other 50- and 60-somethings thinking of franchising, his message is simple: 'Don't do it unless it turns you on. I love what I do, and so I throw everything into it. Do it only if you're passionate about it, and if you're determined to make your franchise the best.'