Higher ROI in 2025: College Degree or Starting a Franchise Business?

In 2025, the landscape of higher education and the labor market is undergoing significant shifts. The promise of a college degree leading to a stable and successful career is increasingly being called into question. With rising unemployment in white-collar sectors, the changing nature of work, and the growing appeal of entrepreneurship, more fathers are considering alternatives to traditional college education for their children.

One such alternative gaining traction is funding a franchise business start-up, which offers the potential for financial independence, business acumen, and even deeper, more meaningful father-child relationships. This article explores why funding a franchise business might be a better choice than sending a child to college, focusing on the increasing uncertainty of finding work for college graduates in 2025 and the relational benefits of serving as a mentor in a business setting.

The Changing Dynamics of the Labor Market and College Education

A college degree has long been considered the golden ticket to upward mobility and career success. However, in 2025, the promise of a degree guaranteeing stable employment is increasingly uncertain. The rise of automation, artificial intelligence (AI), and the gig economy has drastically transformed the job market. Many white-collar jobs that once required a college education are now being outsourced or replaced by advanced technologies. Positions in fields like finance, marketing, and even law are facing disruption as machines take over repetitive tasks and companies rely on artificial intelligence to handle more complex decision-making processes.

Moreover, the traditional career path — from college to a 9-to-5 job — is no longer as linear as it once was. The rise of remote work and flexible job markets has created a scenario in which college graduates often struggle to find stable, full-time employment. According to recent statistics, white-collar unemployment rates have been rising, even among those with advanced degrees. Graduates find themselves underemployed, working in jobs that do not require a degree, or relying on temporary or contract work that lacks job security and benefits.

In addition, the cost of higher education has been steadily rising, while wages for many white-collar positions have stagnated. The burden of student loans is becoming an increasingly heavy weight for new graduates, many of whom cannot find high-paying jobs to justify the expense. In fact, a report from the Federal Reserve shows that student loan debt in the U.S. is nearing $1.8 trillion, and many graduates are struggling to pay off their loans due to underemployment or wages that don’t match their educational investment.

While the prospect of finding career stability based on a college degree is going down, the cost for degrees has grown much faster than inflation for decades. This combination makes achieving a positive ROI elusive.

The Appeal of Franchise Ownership for Young Entrepreneurs

Given the uncertainty in the job market, some parents may decide that funding a franchise business start-up for their child offers a more secure path to financial independence than the traditional college route. The franchise model offers several advantages that could help a young entrepreneur thrive, even in an unpredictable economic landscape.

First, franchising provides a proven business model, which significantly reduces the risk of failure. Unlike starting a business from scratch, a franchise offers the benefit of an established brand, a well-defined operational structure, and a support network. This means that the franchisee — in this case, the child of the parent — is stepping into a system that has already been tested and refined. This increases the likelihood of business success, providing a stronger foundation for the child's career and financial future.

Additionally, many franchises are in industries that are resilient to economic shifts, such as home services, senior care, and wellness. These industries are in high demand and have a consistent customer base, meaning they offer more stability than many other sectors. In 2025, as the labor market continues to evolve, owning a franchise in such industries can provide a young person with a steady income stream and the chance to build a scalable business. For a parent, this sense of security for their child may outweigh the dubious value of a generalized four-year degree.

Furthermore, the entrepreneurial route offers the potential for greater financial reward. While many college graduates are entering the workforce with significant student debt and modest salaries, a successful franchise owner has the opportunity to build wealth over time. By reinvesting profits, expanding the business, or even opening additional franchise locations, the child has the potential to generate more income than they might have in a traditional white-collar job. The upside potential in entrepreneurship is far greater than the typical salary ceiling in many white-collar careers today. Additionally, while nepotism is a dirty word in corporate America, involving family members in a franchised small business is a solid option for building generational wealth. 

Relational Benefits of Mentorship Through Entrepreneurship

Beyond the financial and practical considerations, funding a franchise business provides unique relational benefits. The parents can serve as a mentor to their child throughout the business’s growth, which can deepen an already meaningful connection. Unlike a traditional college experience, where the parents may be somewhat distant from the child’s day-to-day challenges and growth, being involved in the business allows the parents to support the young adult's development on an ongoing basis.

As the business owner navigates the highs and lows of entrepreneurship, the parents have the opportunity to provide real-time advice, guidance, and encouragement. This mentorship role can be incredibly fulfilling and offer the parents a sense of fulfillment. It allows them to teach invaluable life lessons — not only about business and leadership but about resilience, problem-solving, and decision-making. This hands-on involvement fosters an adult peer relationship based on trust, respect, and mutual growth.

Another significant aspect is the pride that a parent might feel in watching his adult child take on the responsibility of business ownership. This experience provides parents with a unique opportunity to witness firsthand how their support and guidance has shaped the child’s growth and success. It’s a dynamic that is far more personal and rewarding than the typical parental role in an adult child’s college journey.

The Path Forward: Reclaiming Control and Building Legacy

In addition to the financial and relational benefits, funding a franchise business start-up also allows the family to control their own enduring legacy. Rather than relying on an external institution like a university, the parents can invest directly in the adult child’s success, empowering them to take charge of their own destiny. This autonomy can be incredibly fulfilling for all, as they work together to build a lasting legacy.

For parents seeking a meaningful way to invest in their child’s future success, funding a franchise business start-up is a compelling alternative to the traditional college path. It offers a practical, financially rewarding solution in a labor market filled with uncertainty, while also strengthening the relationship through mentorship, shared goals, and mutual success. By investing in entrepreneurship, parents not only provide their child with a solid foundation for financial independence but also play a pivotal role in shaping their character, values, and work ethic — qualities that parents would trust few colleges or degrees impart in 2025.

For parents who want to learn more, the International Franchise Association (IFA) has just released a franchise forecast for 2025 showing which concepts are growing quickly.