Franchise players create business opportunities for black communities

Establishing a franchise business in Black communities presents opportunities for transformative economic growth and empowerment. On average, Black-owned franchises generate more than twice as much revenue as Black-owned independent businesses. About 26% of franchises are owned by people of color, compared to 17% of independent businesses. The IFA reports that “franchisees of color and female owners are disproportionately represented.”

Black entrepreneurs can address the unique needs and challenges of their communities by focusing on health and wellness, education, technology, and community-oriented franchises. This initiative promotes physical and mental health, fosters academic success for underserved youth, bridges the digital divide, and creates vibrant collaborative spaces.

What it means to be a black franchise owner

economic empowerment

Black franchise owners have the opportunity to build wealth, create jobs, and foster economic growth within their local communities. Franchising allows you to leverage a proven business model, which increases your chances of success compared to starting a business from scratch.

community leadership

Franchise ownership provides a platform for leadership within the Black community. Owning a franchise makes you a role model and source of inspiration for aspiring entrepreneurs. Your success can motivate others to pursue their business dreams, creating a ripple effect of entrepreneurship and ambition.

Access to resources

Franchising provides access to established brand recognition, operational support, and marketing strategies. These resources are especially helpful for Black entrepreneurs who may face challenges securing funding and building a customer base. Having the backing of a reputable franchise gives you a competitive edge and increases your chances of long-term success.

Meet Taj Carter

While the barriers to entry may seem high, Carter, president and founder of The Franchise Player, makes it possible for Black entrepreneurs to start a franchise. Her efforts are expanding the number of Black-owned franchises across the country by providing education, access to capital, coaching and mentoring.

Carter spent 15 years in franchise operations for top brands including Cinnabon, Carvel, Baskin-Robbins, and Dunkin’. After seeing the lack of diversity in the franchise industry, she felt a mission to make a difference.

“Franchising is one of America’s best-kept secrets,” says the new entrepreneur. “I know firsthand that information about franchise ownership doesn’t reach communities of color, especially Black communities. Having been given the opportunity to be in a place and space to learn about franchises and franchise owners, I felt it was my duty to share what I knew.”

Carter believes the most important connection between the franchise and Black and brown communities is education. She noticed that information about the franchise industry was being presented in mainstream venues such as trade shows, rather than in the community itself. To alleviate this challenge, eight months after opening her shop, she launched her game franchise with Yum Brands. TFG became the first and only African-American franchise symposium and trade show in the United States, featuring sessions by franchisees, attorneys, business development executives, and operations managers. The symposium attracted experts and industry leaders, including a keynote address by Damon Dunn, a former NFL player who owns nearly 40 watches. Dunkin’ Brands franchise.

“We partner with comprehensive franchise brands,” Carter said. “They are looking for ways to be more inclusive. Brands that exhibited and participated in this event last year participated with a focus on leveling the playing field related to franchise ownership and ownership opportunities. doing.”

Securing capital

Securing the necessary funding to start a franchise can be one of the biggest challenges for new entrepreneurs. Here are some methods to consider.

• Small Business Loans: Contact your bank or credit union for small business loans. Many financial institutions have special financing programs designed for franchise businesses.
• SBA Loans: The U.S. Small Business Administration (SBA) offers a variety of loan programs to assist new entrepreneurs, particularly franchise financing.
• Franchisor financing: Some franchisors offer direct financing or have relationships with lenders who understand and can fund the franchise model.
• Angel investors and venture capitalists: Consider pitching your business plan to angel investors and venture capitalists who may be interested in funding your franchise.
• Crowdfunding: These platforms can be used to raise small amounts of money from large numbers of people. This is an effective way to raise funds and build a community of supporters at the same time.
• Home Equity Loan: If you own a home, a home equity loan or line of credit can help you finance your franchise investment.

Mr Carter added:[Financing] It could be as simple as having a conversation with one or two people within your sphere of influence who are responsible for fundraising and who may be looking for investment opportunities. ”

In one year of operation, Carter has secured 43 clients and works with them at various stages of the franchise process. She works with various members of the African American community to remind them of the most important myths about the franchise. That means the franchise organization is responsible for your success. Franchise brands need to provide support. It’s in the disclosure document and anything they do above and beyond is a perk. It is up to the owner to make the store prosperous.

“Increasing Black ownership and franchising brings much-needed diversity and representation to the business community as a whole,” Carter concludes. “It introduces fresh perspectives and ideas, enriches the industry and promotes inclusivity.”