Franchising provides a gateway to entrepreneurship, allowing individuals from varied backgrounds to realize their business dreams. Despite its growing prominence, disparities persist in franchise ownership. Black business owners accounted for less than 3% of all franchise firms, and Hispanic businesses accounted for nearly 5%.
Tarji Carter, a franchising expert, emphasizes the distinction between mainstream franchising and opportunities accessible to newcomers. “There’s mainstream [franchising], and then there’s us,” she told ESSENCE, “I’ve noticed that a lot of brands are specifically targeting seasoned multi-unit operators who are well capitalized.” Many of the most prominent franchisees seek out operators capable of making significant investments in developing new locations in conjunction with the existing ones to expand the brand footprint overall. “Someone new to franchising, who may not have a lot of experience, will never get those mainstream opportunities. So, it’s important to build a strategic approach that includes brands that offer incentives for us.”
Recognizing this gap, programs like DiversityFran, The International Franchise Association (IFA) initiative, and The Franchise Player, led by Carter, aim to address these disparities. They aim to provide clear pathways to franchise ownership, focusing on brands prioritizing diversity and inclusion. As diversity gains momentum in franchise ownership, more Black women are entering the field. Stacey Howell, Franchise Owner of Woodhouse Spa in Buckhead, embarked on a transformative journey from a corporate career to franchise ownership, learning invaluable lessons along the way.
Carter and Howell share their experiences, insights, and advice for newcomers interested in joining the franchise community.
Making Strides: Impactful Diversity Initiatives in the Franchise Industry
According to an International Franchise Association report, the franchising industry is taking proactive steps to embrace diversity and foster inclusivity; one key aspect of these initiatives is targeted recruitment efforts as companies actively seek out individuals from diverse backgrounds to become franchise owners. The results are proving out.
According to a Franchise Business Review report, some franchise brands stand out for their high representation of black-owned businesses. For example, Tropical Smoothie Café locations are reportedly 193 times more likely to be black-owned than the average franchise. Similarly, Nothing Bundt Cakes is 115 times more likely to be black-owned, while in-home care service providers like Right At Home and Visiting Angels are 42 and 73 times more likely, respectively. Kona Ice franchises have a 28 times higher likelihood of being black-owned, while 360clean franchises top the list at a whopping 1,787 times more likely than the average franchise.
By embracing diversity and inclusivity, franchisors are paving the way for a more vibrant and dynamic future for the industry.
Empowering Autonomy and Opportunity for Black Women in Franchising
Owning a franchise represents a significant avenue for Black women to seize control of their futures for economic independence. It was enticing for Howell, who came into franchising after a successful sales and nonprofit leadership career, including serving as CEO of an Atlanta-based nonprofit.
“For four years, I made a difference in the lives of many, and I didn’t want to give that up, but financially, I was no longer growing, and I had to make a change,” Howell told ESSENCE. “After watching my family members and my own experience, I learned Corporate America is not guaranteed to last forever.”
By seizing opportunities in franchising, Black women can pave their own paths toward success and achieve financial independence. Leaning into one’s personal strengths and abilities, Howell says is crucial: “When the corporate season passed for me, I looked at my abilities, experience, and passion. I realized that I love wellness.” That realization propelled her into the lucrative $20 billion spa and wellness industry.
Embracing New Skills: The Key to Success in Franchise Ownership
While passion ignited her journey, Howell recognized it wasn’t enough. “Passion will get your juices flowing,” Howell said. “But, the plan should be one where your passion, purpose, skills, and experience meet, and this becomes your personal intersection of success.”
She stresses the critical need for a shift in mindset to acquire new skills and knowledge for longevity in the domain: “One challenge I experienced through this process was adapting to the increased level of responsibility and decision-making autonomy as a franchise owner. Each franchise system comes with its own unique set of rules and expectations, and gaining a comprehensive understanding of these, especially in the spa industry, was crucial for success. Establishing a strong rapport with Woodhouse Spas corporate leadership and leveraging their extensive support networks proved instrumental in overcoming these challenges to implement a solid operational model right from the start.”
Aspiring franchisees must be prepared to acquire new skills, navigate challenges, and build strong relationships to thrive in this dynamic industry.
Starting Small: A Strategic Approach to Franchise Ownership
With over a decade of expertise in franchise sales and development, Tarji Carter has been instrumental in helping numerous small business operators achieve their dream of franchise ownership. She has contributed to the growth of renowned brands such as Cinnabon, Carvel, Baskin Robbins, Dunkin, Wingstop, Edible Arrangements, Fuddruckers, and Bojangles.
Starting with smaller franchises can offer prospective entrepreneurs strategic advantages: “Companies like Ben & Jerry’s or Smoothie King, which offer simpler menus, are ideal for newcomers. With smaller franchises, you get hands-on experience, actively participating in day-to-day operations. It’s a great foundation.”
As the industry remains focused on diversity and inclusivity, franchising embodies a hopeful outlook for diverse aspiring entrepreneurs, promising a dynamic and thriving future.Starting with smaller franchises, as highlighted by Tarji Carter, presents strategic benefits for aspiring entrepreneurs, offering practical experience and a sturdy groundwork for expansion. For Black women like Stacey Howell, franchising offers a chance to steer their business paths and attain financial autonomy.