As many are aware, February is Black History Month, a time to pay tribute and celebrate the success and contributions of African Americans in the U.S.
The franchising industry is well represented by individuals and initiatives striving to make business ownership an attainable goal for minorities. Reaching the industry’s highest levels, the International Franchise Association (IFA) long ago created its own Diversity Institute Board and there are countless franchisors who go above and beyond when it comes to incentivizing the recruitment of franchisee candidates of color – with the ultimate goal of helping them establish business ownership of their own. While the industry has achieved a few notable accomplishments, there’s still plenty of progress to be made. And, as you’ll see, it starts at the individual level.
Minority Ownership in Franchising
One of the more admirable statistics we can share includes a snapshot of minority participation in the franchising industry, especially compared to non-franchise business ownership. According to data from the U.S. Census Bureau, approximately 30% of all franchises are minority-owned, compared to only 19% of non-franchised businesses. The bureau’s 2021 Annual Business Survey reveals that there were more than 140,000 total business owned by African Americans, 1.3 million employees, $42 billion in payroll, and $141 billion in economic impact. And the Minority Business Development Agency (MBDA) has shared that the top three industries for minority-owned business can be found in transportation/warehousing (16%), services (15%), administrative/waste management/remediation (12%).
Despite this progress, the greatest obstacles for minority-owned franchise ownership include a lack of capital, smaller networks, and gaps in specific business-related skills. But as you’ll see, FranNet is heavily vested in closing these gaps, while providing an education on how franchising creates avenues of opportunity for minority business owners.
“Employee to Entrepreneur”
Boynton R. Weekes, a FranNet consultant in New Jersey, is a 22-year veteran of the franchising industry. He’s also a minority who’s dedicated to making valuable inroads and contributions in helping other minorities discover the value of franchise ownership. On Saturday, Feb. 18, Boynton led a presentation and panel discussion entitled, “Employee to Entrepreneur, Minorities in Franchising” at the Franchise Expo held at the Meadowlands Expo Center. The full panel included Dr. Alissa Gardenhire, a franchisee with the Best in Class Education Center, Greg Wright, a multi-unit franchisee with Club Pilates, Richard Snow, VP of the national franchising program for WSFS Bank and board member of the IFA’s Diversity Council, Chris Wilson, multi-unit franchisee with Salons by JC, and Allen Boomer, a multi-unit franchisee with Zips Dry Cleaning. In front of a live audience, Boynton shared the pros and cons for all routes to business ownership – and how franchising’s proven business models, comprehensive training, and ongoing support give new owners a better chance to succeed. He and the other panelists contributed to sharing an overview of the industry, touching on the importance of knowing your personal goals and objectives before beginning a franchise search. He closed the presentation with an in-depth discussion of how franchise consultants can be of invaluable help in researching your options safely and effectively, thus increasing the chance of finding the right franchise opportunity.
“As an industry, franchising offers an incredible opportunity for minorities to establish business ownership of their own,” stated Weekes. “But we all could stand to do a better job with our outreach and education designed to target this specific audience. Within the franchising industry, there are so many programs, initiatives, and readily available assistance to share with minority ownership clients. As such, I’m always willing to share the knowledge I’ve gained as a franchise consultant over the years to create more minority-owned franchise establishments.”
Boynton R. Weekes’ FranNet office is located in Metuchen, New Jersey. He can be reached at Bweekes@frannet.com.
Let’s Chat!
FranNet is standing by to help you navigate your own personal entrepreneurial journey. Getting started is simple and involves setting up a no-cost, no-obligation appointment with one of our qualified FranNet representatives. Not yet sure what type of business you were meant to own? That’s fine, too – you simply need to reach out and speak with one of our qualified franchise experts today! Together, we can find a business opportunity that aligns with your lifestyle and income-oriented goals.