Entrepreneur USA - January 2018

(Jeff_L) #1

108 / ENTREPRENEUR.COM / January-February 2018


IT’S A WEEKDAY morning


and Howard Mierau’s


2-and-a-half-year-old


granddaughter is paddling in


a heated pool at the Goldfish


Swim School franchise in


Needham, Mass. The


blond-haired, blue-eyed


toddler, clad in a baby-blue


swimsuit, spends two or


more mornings a week here


learning water safety and


swimming techniques, while


her grandfather watches


from the tiki-themed viewing


area. And when they’re not


at Goldfish, they’re at


another franchise, Gymboree


Play & Music.


This all looks quite


different from when Mierau


raised his own daughter


decades ago. Back then, his


wife stayed home while he


worked as a computer


programmer. But that


daughter grew up, got


married, and had a child of


her own—and because she


and her husband work


full-time and wanted to make


sure their daughter is fully


occupied and looked after,


Mierau began commuting


from his home in Tampa to


help out. “[Her parents] want


her to be happy, they want her


to be healthy, and, yeah, they


want her to be exposed to


other kids,” Mierau says.


Which is where the


franchises come in.


Franchisors have always


tried to find and respond to


unmet market needs—say,


the urge to grab a quick meal


when you’re on the road. But


these days, some of the


greatest unmet needs are


coming from a growing


population called the


sandwich generation.


Defined by Pew Research as


people with kids under 18


and parents over 65, and who


increasingly work full-time,


this generation represents an


unprecedented social and


demographic shift that is


driving growth across the


economy—and, by extension,


the franchising landscape.


The shift is easily visible on


our Franchise 500 list.


Parents of young children are


turning to franchises like


Goldfish Swim School (#55),


Primrose Schools (#27),


Kumon Math & Reading


Centers (#20), School of Rock


(#163), and trampoline park


Sky Zone (#81) for children’s


enrichment and entertain-


ment, while at the same time


relying on companies like


Right at Home (#49) and


Nurse Next Door (#50) to


care for their aging parents.


Behind this growth are


several intertwined demo-


graphic trends. The average


age at which women have a


first child is the highest on


record, the Centers for


Disease Control reports, with


more of them waiting until


their late 30s or early 40s to


start families. And nearly half


of couples both work full-


time, up from fewer than a


third in 1970, according to


the Census Bureau, driving


businesses that give children


something to do on the


weekdays and after school,


when kids once stayed home


and played. (Franchises also


help parents cut down their


children’s screen time—and


their guilt about it.)


Older moms and dads are


further removed from their


own schooling than their


parents were, too—which, in


a hypercompetitive age, can


be a source of anxiety. “They


look at their kids’ homework


today, and the methodology


for getting to the answer is


completely different,” says


Frank Milner, the president


of Tutor Doctor. “There’s just


this drive to give our kids


every advantage we possibly


can, to give them the best


shot at success in life.”


The franchised elder-care


industry is seeing a similar


explosion in growth. Some


10,000 Americans are


turning 65 every day, Pew


estimates—a trend known as


“the silver tsunami”—creat-


ing a vast market of more


Franchisors have


always tried to respond


to unmet needs. And


some of the greatest


unmet needs are coming


from people with aging


parents, young children,


and full-time jobs.


I

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