2024’s Top Women in Franchising: Heather Elrod

The Franchise Leader: Heather Elrod

The Companies: Conscious Capital Growth, Uni K Wax

1851 Franchise talked with Heather Elrod, managing partner of Conscious Capital Growth and executive chair of Uni K Wax, about her journey in franchising, her accomplishments in the industry, and the strategies she suggests for franchisors looking to empower and support female franchisees this year.

1851 Franchise: Can you share your journey to becoming a leader in franchising?

Elrod: I grew up in franchising, and my journey in business format franchising started after I completed my undergraduate degree. My father had an inspired career in franchising, leading many companies and becoming Chair of the [International Franchise Association] board along with being nominated into the Franchising Hall of Fame. He made introductions for me, and I started at entry levels and worked my way up the ranks, ultimately landing in the C-suite where I had the privilege to experience private equity transactions and become educated in the transactional world.

The woman who inspired my leadership journey was my grandmother. She did not attend high school, but later earned her GED and then went on to get a cosmetology certification and a teaching certificate in cosmetology. After teaching cosmetology for several years, she decided to open her own hair salon and ultimately owned and operated three successful salons. Back then, women could not get business loans so my grandfather co-signed for her. They were a progressive couple, ahead of their time. He always encouraged her entrepreneurial pursuits. When I asked my grandmother what gave her the courage to open her own business and be an entrepreneur she said, “I never thought I couldn’t!” I have never forgotten those words!

1851 Franchise: What are the unique challenges and opportunities for women in franchising?

Elrod: The opportunities are endless for women in franchising. We are experiencing more gender balance in the C-suite and at the Board level. Franchising is particularly effective at promoting economic advancement for women as it drives business growth and job creation. Well-run franchise systems with quality franchisees have superior store success rates, highly-replicable growth models, and annuity-like revenue streams. Thirty-point-eight percent of franchises were owned by minorities, compared to 18.8 percent of non-franchised businesses (source: 2012 U.S. Census Bureau). Overall, the minority ownership rate for franchised businesses increased by 50 percent over the most recent period studied.

Franchising is a viable path towards wealth creation for all. Franchise businesses create jobs at a rate 2.3 times as high as non-franchise businesses. 

I would like to see more women in private equity (PE), particularly at leadership levels, but there has been some positive momentum here over the past few years as well. [In their recent “State of Diversity in Global Private Markets: 2023,”] McKinsey [& Company] reported that at the end of 2022, 48 percent of all entry-level roles in PE were held by women reaching near gender parity. However, women in PE are still underrepresented in leadership positions, with only 20 percent representation in managing-director roles.

1851 Franchise: How do you define success in your role?

Elrod: I define success as creating value for businesses and individuals at all levels of the value chain. We named our firm “Conscious Capital Growth” purposefully because our tenets are pursuing a higher purpose and servant leadership. My mission is to help other people and businesses reach their potential and enrich lives, along with shareholder value, in the process. However, there is “no mission without margin,” so this requires rigor in planning and execution along with a high level of accountability.

1851 Franchise: What advice would you give to franchisors looking to support and empower female franchisees?

Elrod: I encourage all franchisors to be purposeful in identifying opportunities to support career growth, investment opportunities and economic growth for women. Look around the board table and in your leadership ranks, and determine if you have gender parity. If not, recruit with purpose to create parity. Identify ways to help female franchisees gain access to capital for expansion. Take note that this is not about filling a quota; it is good business. Women control over $31.8 trillion in worldwide spending. By 2028, women across the globe are projected to own 75% of discretionary spending, according to Nielsen. 

1851 Franchise: What advice do you have for any women aiming to enter the franchise industry?

Elrod: Franchising is an industry built by communities, relationships, people, and opportunities, spanning more than 300 different business categories. For women looking to become franchisees, they should evaluate franchised businesses with confidence as the proven franchise business model allows for any individual — regardless of their previous experience or education — to own their own local business without having to assume the large risks and higher costs of starting a new brand from the ground up.

For women looking for career opportunities with franchisors, recognize that franchising is a significant contributor of global economic output and therefore presents optimal growth opportunities. Franchising added almost 246,000 new jobs prior year, increasing the total employment by franchised businesses to 8.4 million, and will add approximately 254,000 jobs in the recent study. Franchises’ GDP share of the overall economy will remain stable at 3% (source: IFA 2023 Economic Outlook Study).

1851 Franchise: Is there anything else you think our audience should know?

Elrod: I hope that more women will support and mentor each other, that we will give each other a hand up the ladder, that we will pay it forward to future generations by investing in women- owned businesses and supporting other women in their career endeavors. We can make our audacious dreams come true, personally and professionally, so be courageous and never give up.