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Women and Minorities Fuel Economic Growth and Franchise Expansion

Written by: Jocelyn Chavez

Article Overview: From the leadership positions they hold, to the purchasing power they wield, women and minorities play an important role in the overall U.S. economy. Women and minorities have a presence in every industry and their contributions fuel economic growth. Hispanics alone account for 15% of the U.S. population, and by 2050 that number is expected to nearly double to 29%. The sheer number of minorities in the U.S. and the tremendous influence they have on the economy has led everyone from marketers to political candidates to develop campaigns that reach them. Franchisors also recognize that the pool of franchisee candidates is largely comprised of women and minorities who will be integral to growth and expansion of their franchise networks.

Women and Minorities Fuel Economic Growth and Franchise Expansion

From the leadership positions they hold, to the purchasing power they wield, women and minorities play an important role in the overall U.S. economy. Women and minorities have a presence in every industry and their contributions fuel economic growth. Hispanics alone account for 15% of the U.S. population, and by 2050 that number is expected to nearly double to 29%.

The sheer number of minorities in the U.S. and the tremendous influence they have on the economy has led everyone from marketers to political candidates to develop campaigns that reach them. Franchisors also recognize that the pool of franchisee candidates is largely comprised of women and minorities who will be integral to growth and expansion of their franchise networks. Many organizations in the franchising community have developed programs that help women and minorities achieve business ownership.

Franchise concepts account for approximately 10% of the U.S. private sector economy, and provide an avenue for aspiring business owners to achieve their business ownership goals. Previous industry experience often isn't required, and franchises offer built-in brand recognition, consumer loyalty, an established track record and a proven business system. Franchise ownership is especially ideal for minorities that have recently immigrated to the U.S. because franchised businesses are in tune with customers' needs and wants, which eliminates having to grapple with cultural barriers, language disparities and the uncertainty of entering a new market.

As of 2002, the most recent year for which U.S. Census data is available, approximately 20% of all franchised businesses were owned by minorities and 25% were owned by females. With the current efforts to increase franchise ownership among women and minorities, and the growth of the Hispanic, Asian and African-American segments of the population, these figures are expected to increase.

The Small Business Administration (SBA) is among the organizations leading the charge to help women and minorities become business owners. Current and prospective franchisees and business owners can take advantage of a variety of services and resources that the SBA offers. The SBA promotes the growth and development of women-owned businesses and franchises through the Office of Women's Business Ownership (OWBO), a comprehensive network of training, education, and counseling services that provides technical and management assistance programs for women. The OWBO also provides female franchisees with access to credit and capital, federal contracts, and international trade opportunities.

Prospective franchisees looking to join a franchise system that supports the development of minority- and women-owned units can choose from numerous franchise concepts in a variety of industries. Furniture Medic, a division of The ServiceMaster Company, is the largest furniture and wood repair and restoration company in the world, and is among the franchise concepts committed to increasing the number of minorities within their franchise system. The SARAH Adult Day Services, Inc. franchise opportunity provides would-be franchisees with the chance to become part of the in-demand elder care industry. Liberty Tax Service, the fastest-growing tax company, is consistently ranked one of the most affordable and best franchise opportunities for minorities by Black Enterprise magazine.

Some franchisors offer discounts or other incentive programs for minority and female franchisee candidates. Minority and women franchisees also have the ability to obtain certifications for their businesses. Minority- and women-owned business certifications benefit franchise owners because under supplier-diversity programs, government agencies and many large companies are required to contract with a certain number of minority- and women-owned businesses.

Now is an ideal time for women, minorities and anyone interested in pursuing business ownership to begin the search for a business to own. As the economy begins to recover, real estate is affordable and available, there's a large pool of experienced potential employees to choose from, and many businesses continue to achieve success. Visit Franchise Solutions' online business directory to begin your search for a business to own now.

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Article Tags: economic growth, economy, franchise expansion, marketers, purchasing power, us population, women and minorities, women business owners



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Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.
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