New Franchisees?

Franchising is becoming a more attractive business vehicle for a variety of people, and this diversity is strengthening the franchising community.

Women franchisees are becoming more common. Working with data provided by the U.S. Bureau of the Census, the Center for Women’s Business Research found that as of 2004, there are an estimated 10.6 million privately held U.S. firms that are 50 percent or more women-owned, accounting for nearly half (47.7 percent) of all privately held firms in the country. These firms generate $2.46 trillion in sales and employ 19.1 million people nationwide. The largest share of these firms is in the service sector; however, the greatest growth in the number of women business owners can be seen in the construction sector.

Many of these women business owners are franchisees. Women franchisors are also becoming more common, too, such as JoAnne Shaw of The Coffee Beanery. Women also are becoming more involved at the top levels of franchisors’ organizational headquarters as well.

The International Franchise Association (IFA) is striving to meet the needs of women in franchising and to welcome new women to the community. It has developed the Women’s Franchise Committee as a resource for women seeking career-growth franchise opportunities. It also provides international network opportunities, an annual meeting, and monthly phone conferences.

Minorities are finding that franchising presents opportunities as well. Franchising allows someone to become a business owner but it also provides training, financing, and ongoing support that many minority entrepreneurs lack. To help meet this need, the IFA has established its Minorities in Franchising Committee. The mission of this committee is to increase the number and success of minorities in franchising, including franchisors, franchisees, suppliers, and employees.

Veterans, too, are being welcomed into the franchising community thanks to the IFA’s VetFran program, which not only helps veterans connect with franchisors but also helps to finance their ventures. I’m a great supporter of veterans’ involvement in franchising, because they are able to follow a system, hang in there when times get tough, and can lead others with authority.

The changes in the economy are bringing new people to franchising. Those who have been downsized find they can use their skills and business connections in the variety of industries served by franchising. Franchising also provides a measure of stability and security that many who have been downsized are seeking. With their franchisor’s support, these people can create a second career that’s as fulfilling, or even more fulfilling, than their first.

People who aren’t quite ready to retire but are at a turning point in their careers are drawn to franchising as well. While some employers may not want to hire an older worker, these workers can become great franchisees before retiring full-time. They can make a 10-year commitment to a franchise system, at which point they can sell their business or pass it on to one of their sons or daughters. In some cases, they can tap into their 401(k) or IRA to help fund their franchise. There are abundant examples in franchising of people collecting social security who in fact come out of retirement to develop a franchise. It may be for the cash flow, but more often its to restore a meaningful purpose for their life.
This diversity of the franchisee community ensures that it will continue to thrive. Franchises come in all shapes and sizes and aim to meet a host of different consumer needs. The franchise community needs franchisees with diverse skill sets and ties to communities in all parts of the country. In fact, just about anyone who is willing to work hard, has a thirst for knowledge, and lives up to high standards can find a place in the franchising community.

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