AJC | Kelly Loeffler can export Georgia’s franchising success everywhere

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But first, the government should reinstate a list that helped entrepreneurs find financing.

By Matt Haller
Atlanta Journal-Constitution

As Georgia goes, so goes the nation. That’s a reference to not just college football in recent years, but also a business model known as franchising that has thrived in the southeastern United States and especially the Peach State. With former U.S. Sen. Kelly Loeffler tapped to lead the Small Business Administration (SBA), franchising is poised for even more growth in the years ahead, especially with one key policy change.

Franchising refers to a business model in which one party (the franchisor) allows another party (the franchisee) the rights to operate under its established brand and business system. In exchange for access to the brand name, logo and organizational structure, the franchisee typically pays an initial fee and ongoing royalties to the franchisor — owning and operating their own small business.

It’s not only the best of both worlds but also a proven pathway to entrepreneurship for underrepresented communities. More than 1 in 4 (approximately 26%) franchises are owned by people of color, compared with 17% of independent businesses. Black-owned franchises earn 2.2 times more than Black-owned independent businesses on average.

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