4.7 Trends in Business Ownership

“Baby Boomers” and “Millennials” Drive Franchise Trends

We all hear and read a great deal about the “graying of America,” which refers to the “baby boomer” generation heading toward retirement age. By 2030, the 73 million members of the baby boomer generation will be over 65, which is driving the ongoing battle to stay young, fit, and healthy. Boomers have transformed every life stage they’ve touched so far, and their demographic weight means that business opportunities are created wherever they go.

With their interest in staying fit, Boomers are contributing to the growth of fitness and weight-loss franchises. This category is well represented in Entrepreneur's Franchise 500 with multiple fitness franchises on the list. And according to IHRSA, nearly 70 million Americans belong to a health club—up from previous years—so there are plenty of consumers feeding this growing trend.²²

Another area of boomer-driven franchise growth is eldercare. Founded in 1994, Home Instead Senior Care is the largest senior care franchise in the world with a network of over 1,200 independently owned and operated franchises in several countries. And as the world’s population continues to age, the need for its unique services will continue to increase.

Home Instead Senior Care provides a meaningful solution for older adults who prefer to remain at home. Compared with the annual cost for a nursing home placement (over $100,000), home care can vary significantly and can be as much as $70 to $80 per hour. Quality of life is enhanced by Home Instead Senior Care’s part-time, full-time, and around-the-clock services, designed for people who are capable of managing their physical needs but require some assistance and supervision. Home Instead Senior Care provides meal preparation, companionship, light housekeeping, medication reminders, incidental transportation, and errands. These services make it possible for older individuals to remain in the familiar comfort of their own homes for a longer period of time.²³

But the best deal yet may be adult day services, a fast-growing franchise opportunity and “still one of the best-kept secrets around” according to Entrepreneur magazine. Based on the concept of day care services for children, Sarah Adult Day Services, Inc. offers a franchising opportunity that meets the two criteria for a successful and socially responsible business: a booming demographic market with great potential for growth, and excellent eldercare. Programs such as SarahCare centers are highly affordable for its clients, costing around $75 per day. The SarahCare franchise allows entrepreneurs to become part of an expanding industry while restoring a sense of dignity and vibrancy to the lives of older adults.²⁴

Millennials—individuals born between the early 1980s and 2000—are the largest living generation in the United States, according to Pew Research. Millennials dine out at a higher rate than the general population. They have been recognized as changing the restaurant scene by expecting digital interfaces, unique dining experiences to share on social media, and diverse menus. Recent estimates indicate that nearly three-fourths of Millennials and Gen Zers are interested in entrepreneurship. Personal career fulfillment is cited as one of the primary reasons Millennials want to take the entrepreneurship path. When it comes to owning a franchise, growth potential and meeting a flexible, fulfilling lifestyle are both something that attracts Millennials. According to Intelligent.com, nearly half of college graduates want to start a business after graduation. However, data also indicate that graduates lack the skills necessary to be successful. Franchising is the perfect solution to these issues. For example, Chicago area native and millennial Sal Rehman grew up working in his family’s diner. Sal had a dream of operating his own restaurant, and he decided to take the franchising path. In 2015, at the age of 27, Sal opened his first Wing Zone store in suburban Glendale Heights, Illinois.²⁵

Boomers Rewrite the Rules of Retirement

At age 64, Mahlik Larson could be the poster child for retirement except that the concept makes him recoil. Mahlik and his husband are living their dream in a comfortable house on the shore where Mahlik kicks back by floating in the pool when he's not spoiling his grandkids with trips to Disneyland. “The only way you can get me out of here is to carry me out,” Larson says, referring to the consulting company he founded and runs from his basement office. “I love my work, and I cannot imagine sitting at home and doing nothing.”

Larson is not alone. Today’s boomers are working longer at their jobs and embracing postretirement second careers, which often means starting their own small business. As retirees opt to go into business for themselves, they are choosing different forms of business organizations depending on their needs and goals. Some may start small consulting businesses using the simple sole proprietorship form of business organization, while couples or friends might choose to become partners in a retail or franchise venture.

The more healthy and energetic the baby boomer generation remains, the more interested it is in staying active and engaged—and that may mean postponing retirement or not retiring at all. In fact, 53 percent of Boomers plan to work in some capacity during their retirement years, and 36 percent indicated that they will retire past 70 years old or not retire at all.²⁶

Mergers and Foreign Investment Boom, Too

Both in North America and worldwide, mergers and acquisitions are expected to continue to increase after several years of decline. These increases are expected to occur across sectors. The increase is the result of improving economic growth and better stock prices.

This current boom in mergers feels different from earlier merger mania, however. New players are entering the arena, and the number of U.S. and foreign companies making cross-border acquisitions has increased. Whether these new mergers will be good for the global economy remains to be seen. Transactions that lead to cost savings, streamlined operations, and more funding for research and capital investment in new facilities will have positive effects on profitability. Many deals, however, may fail to live up to the acquirers’ expectations.

Foreign investment in U.S. companies has also increased dramatically. Annual foreign direct investment reached over $40 trillion in 2025. The jump is the result of a worldwide investment in advanced manufacturing and AI technologies, as well as the continued attraction of the U.S. economy to investors worldwide.²⁷

And what about U.S. investment abroad? This investment too is increasing. According to reporting from the U.S. Department of Commerce, the outflows from the United States into other countries is now nearly $7 trillion a year.²⁸ In addition to the attraction of cheap labor and resources, U.S. companies of all sizes continue to tap the intellectual capital of developing economies such as China and India, outsourcing such functions as payroll, information technology (IT), web/email hosting, customer relationship management (CRM), and human resources (HR) to keep costs under control and enhance profitability.