How DiversityFran Helps Franchisors Navigate the Changing Demographics of Franchising

The U.S. Census Bureau estimates that by 2045, the United States will have a population of some 289 million people. And for the first time in the nation’s history, the majority of people living in this country will be non-white.

As these demographics continue to change year after year, decade after decade, unique opportunities are arising, compelling franchise organizations to view diversity and inclusion not just as the right thing to do, but as a way of life.

As a result, independent organizations have formed to unite the nation’s franchises in a push toward diversity. Founded in 2006, DiversityFran, an education and recruitment program through the International Franchise Association, was designed to assist IFA members in reaching emerging markets and increasing diversity while at the same time educating diverse prospective franchisees about opportunities in franchising.

Already, minorities account for 20 percent of franchise owners, as opposed to 13 percent of non-franchised business opportunities—a sign that the IFA’s focus on making franchising more accessible to everyone is paying off.

But according to Miriam Brewer, the senior director of education and diversity for the IFA, there is still more work to be done.

“The challenges facing the minority community and reaching the minority community weren’t any different than any other population,” said Brewer.

A lack of knowledge about the franchising industry, a lack of resources to become a franchise owner and a lack of connections within the industry were all identified as the largest obstacles. To help fill this gap, DiversityFran hosts one-day seminars and networking events to educate attendees on a variety of related topics, including the legal aspects of franchising, how to finance a franchise opportunity, what resources are available in franchising and more.

Brewer has been at the helm of this program nearly since its inception, and she believes she knows the secret to promoting diversity in any franchise system.

“You have to think outside of the box in your networking and outreach. There are always limits to budget and time in terms of travel and recruitment,” said Brewer. “But if you continue to fish out of the same pond, you’ll always get the same results.”

She encourages franchisors to get out of their comfort zone when it comes to education and recruitment of franchisees. For example, Brewer has found great success working with national organizations geared towards minority communities like the National Black MBA Association, Reservation Economic Summit, local ethnic chambers, local women’s groups and more. And with demographics continuing to shift, Brewer says minority outreach isn’t optional for franchisors.

“Qualified candidates aren’t always going to come to you,” said Brewer. “And if you don’t come to them, your competitors will.”

Brewer has targeted nontraditional conferences, events and organizations for her outreach, too, to supplement the events DiversityFran hosts itself. And more than being strictly about recruitment, Brewer notes that these educational opportunities to connect with qualified professionals could not only lead to potential franchisees, but could encourage an existing business owner to franchise their own concept, become a supplier and more.

“These groups now can act as our eyes and ears and as our ambassadors to the community,” Brewer said.

John Blair, vice president of marketing for FranNet, echoes Brewer’s thoughts on the importance of outreach to the minority communities.

“FranNet has known for a while that the face of franchising is changing.  An industry that has forever been seemingly dominated by middle-aged men appears to be seeing somewhat of a shift,” he shares. “Since 2011, FranNet has seen a 71% increase in women franchise owners — and women now comprise nearly 25% of all placements with FranNet compared to about 18% in 2011.”

More and more entrepreneurial minded people are finding that franchising is the accessible path to business ownership that they’ve been looking for. With an established infrastructure, corporate support, training and brand recognition, a franchise concept offers a proven system without much of the guesswork that accompanies starting your own business.

“Franchising is a good option for a lot of people regardless of demographic status,” said Blair. “With franchising and business in general, there are many programs in place to aid those in search of a business opportunity.  There are minority loan programs, SBA programs, special education opportunities and the VetFran program for veterans. Franchising provides the infrastructure to anyone interested in business ownership to make that dream come true.”

JAN-PRO, an international commercial cleaning franchise system, is a member of DiversityFran, and with over 90 percent of their 10,000 owners and operators of ethnic origin, they’ve employed a few strategies in addition to their membership in the IFA’s program to promote diversity.

“We promote diversity a few ways,” says Dennis Thompson, Executive Vice President at JAN-PRO. “JAN-PRO offers an affordable entry plan to become a business owner, which removes the restriction of a large capital investment that many minority candidates simply can’t meet. Then our program offers a five module certification program to ready each of them on how to operate their own business successfully.”

As demographics of the country and world continue to shift, the franchising industry needs to shift their outreach efforts to cater to this growing population of qualified candidates. By thinking outside the box, making connections with other organizations and focusing on education, franchisors can continue to grow their brand in new communities.