Question

Two franchising experts recently debated the issue of whether new college graduates should consider franchising as a pathway to entrepreneurship. Jeff Elgin said recent college graduates are not ready to be franchise owners. “First, most recent college graduates don’t have the financial resources to fund a franchise start-up. Second, many lack the life experience and the motivation to run a business effectively and stick with it when times get tough.” Jennifer Kushell said franchising is the perfect career choice for many recent college graduates, for several reasons: (1) The support system that franchising provides is ideal for young entrepreneurs, (2) young people have grown up with franchising and understand it well, (3) many college graduates already have launched businesses of their own, and (4) they think big. Which view do you think is correct? Explain.

Answer 1

While franchising is a good opportunity where the brand is already well known and it will be easy for the business to settle down, we do not have any opportunity to try something new or innovate. Franchising does not allow our own rules and this might be a drawback for young students as they can be very creative and can come up with wonderful business ideas. So franchising is not a good option for young students. They must be given an opportunity to think and innovate and gain experience. Hence the view of Jeff Elgin is correct.