Boosting Diversity In Franchising

Franchise Update:

Statistical information speaks volumes. Take the 2002
U.S. Census. It points out that the composition of the U.S. population will continue to change quickly, with minorities projected to become the majority by 2050. There is also rapid growth taking place in the number of minority-owned businesses. Their numbers exceed 4.1 million; they generate 4.8 million jobs and almost $700 billion in gross receipts.

But how well is the franchise industry dealing with these projected population changes?

Much still needs to be done, according to a report from the International Franchise Association (IFA) entitled ‘Diversity and Minority Franchisee Development Guide.’ Sponsored by the PepsiCo Foundation, the report points out that minority participation in the franchise industry is not keeping pace with the rapid changes in the U.S. population.

Less than 8 to 10% of franchisees are owned by minorities, according to C. Everett Wallace, past chairman of the IFA’s Minorities in Franchising Committee. To change those numbers, 3 major obstacles must be addressed. Namely, minorities need to be provided with better information on franchising opportunities, they need to be able to establish relationships with existing franchise owners, and they have to be able to locate capital to launch and grow a franchise.

The report pinpoints other obstacles as well. Read it all.