Franchising Offers Solution for Business Ownership Among Women and Minorities
FOR IMMEDIATE RELEASE
Contact: Jenna Weisbord, 310-995-0839
New research released shows rising trends in franchise ownership rates among minority and gender groups
WASHINGTON, March 15— On the heels of a year of pro-business policies, the franchise sector is providing a path to economic, social, and generational mobility for all Americans. According to a new comprehensive study commissioned by the International Franchise Association’s Franchise Education Foundation and conducted by PwC, franchise ownership rates among minority-owned and female-owned franchise businesses has grown by more than 50 percent over the last five years.
“The franchise business model has solidified its place in our economy as a stable job producer and opportunity engine and is uniquely situated to affect serious change in local communities by encouraging employment for those who need it most,” said IFA President & CEO Robert Cresanti. “This report demonstrates how the franchise business model is working to meet the future challenges of a rapidly growing and diversifying franchise sector with shifting demographics, instituting a way of living that achieves a dream for millions of Americans.”
The Minority and Gender Ownership Study highlights the dynamic growth of franchising has created more opportunities for women and minorities. Key findings include:
- Between 2007 and 2012, the share of minority-owned businesses that operated as a franchise grew by more than 50 percent.
- Nearly one-third (30.8 percent) of franchises were owned by minorities, compared to 18.8 percent of non-franchised businesses.
- In 2012, minority-owned businesses were more likely to be operated as franchises than nonminority-owned businesses.
- In 2012 30.6 percent of franchise businesses were female-owned as compared to 20.5 percent in 2007.
- Female ownership among franchises increased overall by nearly 50 percent.
“As Congress and the Administration take monumental steps towards creating a pro-business America – it is clear franchise business owners are responding,” stated Cresanti. “But these statistics can only continue if lawmakers remain steadfast in their support for a strong business environment.”
The IFA unveiled the new data today at an event co-hosted with the Black Chamber of Commerce, Rainbow Push Coalition and Members of Congress. The event aimed to discuss black wealth creation through franchising and the EMPOWER Franchising Act, an IFA-lead initiative that will provide a 25 percent tax credit off initial franchise fees to a new minority franchise owner.
Celebrating 56 years of excellence, education, and advocacy, the International Franchise Association is the world's oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising and the more than 733,000 franchise establishments that support nearly 7.6 million direct jobs, $674.3 billion of economic output for the U.S. economy and 2.5 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees, and companies that support the industry in marketing, law, technology and business development.