Minority Franchises

Many franchise brands have been very active and they have doubled their efforts to employ minority franchisees. Programs have been initiated by numerous franchisors to recruit minorities with an attempt to offer business ownership opportunities and job creation. Additionally, there are also discounts on franchise royalties and fees offered to minorities. These subsidized payment plans are not unusual in the modern day in the U.S and they are offered to make it easier for the minorities to join franchising. If you are wondering which of the existing companies support this kind of multiculturalism and diversity, feel free to browse the minority franchises section on our website. This is your opportunity to take the first step and engage in franchising. However, there are several issues that must be addressed in order for more minorities to embrace franchise ownership. One of the major issues is the false perception that minorities are not given an equal chance by franchisors to own or create businesses in the inner city areas or in urban areas. A census carried out in the year 2010 confirmed that 49 percent of the United States population is comprised of minority groups. Moreover, studies show that the minorities account for 80 percent of the population growth in the United States in recent years. These minority groups include African-Americans, Hispanics, Pacific-Islanders, Asians, and African-Indians. With this steady population growth of the minorities these groups might be the ‘new majority’ in the coming decades if the trend continues. For this reason, the minorities will definitely have significant influence on the U.S future development. Numerous franchises are thereby offering incentives to minority groups in order to reflect the U.S population’s diverse nature. According to Rob Bond, the World Franchising Network president, franchises that are creating programs for minority recruitment are playing a great role in ensuring that the minorities embrace franchising. The franchises, therefore, provide value by promoting diversity among franchisees. IFA Foundation conducted a research in 2018 and the study showed that the minorities own 31 percent of franchised businesses as opposed to 19 percent of businesses that are non-franchised. Consequently, the overall number of businesses owned by the minorities has significantly increased over the years. This number has increased by 10 percent in the last five years. Between the years 2002 and 2007, there has been a 60 percent increase in the businesses owned by black people. According to the latest census, black-owned businesses have sales receipts amounting to more than $137.5 billion. Asian-Americans have also not been left behind as the number of businesses they own has grown by 40 percent. Hispanics are doubling the rate of the national average when it comes to starting small businesses. Franchisors, nevertheless, are still conducting marketing campaigns that can reach more culturally diverse consumers in an attempt to attract minorities in franchising. For instance, a large Hispanic population resides in Miami, Florida and so commercials that run here feature Spanish sayings and words. Additionally, the commercials feature Hispanic actors in order to hugely impact the audience in the region. In addition, McDonald’s has products consumed by the Hispanic population, like the café con leche. From this, the minority franchise owners in Miami are placed in a better position to meet their customers’ needs. Search the listings for an opportunity that is right for you on Franchise Clique.