One of the great things about owning a franchise is that it is available to everyone regardless of race, education, gender, or geography. That’s right – everyone! The criteria that determine if you would be a good business owner or not has nothing to do with race, education, gender, etc.
The trend of globalization has effects towards small businesses. It is evolving to cater with the modern changes. The notion of a certain ethnicity running only a certain kind of business is long gone. Approximately 19% of U.S. employer businesses were minority-owned providing millions of jobs. This shows an increase in business ownership for small businesses across all the ethnic groups. As of now, the pie in business ownership consists of 71.8% white, 11.6% Hispanic, 9.6% Asian, 4.2% African American and 2.8% for remaining ethnicities.
To understand this better, let me explain what the franchise model is and how it came about. It all began back in the boardroom. Key executives who started the franchise had a decision to make when they launched the company. “Do we become a franchise or not?” Companies like Starbucks decided not to go the way of franchising. Why? Because they wanted full control over staff, capital, and pace of distribution.
McDonald’s, on the other hand, decided in their board room that being a franchise was a better route for them. They liked the idea of using other people’s money (the fact that owners will have invested in their company). They didn’t want to manage hundreds or even thousands of employees and they wanted to increase the pace of distribution. However, they knew that if a person invested in their company and wanted to own their business, they would have to give up control. Therefore, companies who chose the franchise route have a defined set of criteria that they are looking for in an investor/owner of one of their franchise stores.
Franchise companies are looking for anyone who can show a good work ethic and have a background in management, leadership, and business development, and who have the capital requirements needed to purchase the brand. There is one group of people that do stand out as great franchise owners, they are our veterans. Veterans have proven that they can follow a system, and franchise companies are wanting their owners to follow the system they created that has brought them success.
This is what’s so great about the franchise industry. It is truly “The American Dream”. You don’t have to have experience in the product or service, they will train you. You don’t have to have a college education or an MBA, you only need to show a good work ethic and that you can manage operations, build teams, and understand what it takes to develop your business.
You might be thinking that franchise ownership is only for those well-off, those with maturity in age and net worth. Interestingly enough, there was a shift in the average age of franchisees. Ten years ago the average ge was between 45 to 65 years old. However, today the survey shows that individuals start to own franchise businesses as early as their mid-30’s. The trend for net worth in starting a franchise has also taken a favorable turn. The cost of owning a franchise can run from $50,000 to well over a million dollars. There is something for everyone. We have individuals, families, partnerships, corporations, and even private equity groups who buy franchises.
There is a great saying “A job is the quickest way to cash flow but owning a business is the fastest way to build wealth”.
Franchise ownership is not for everyone but for anyone who has the drive and mindset of taking control on how they earn. Regardless of background, ethnicity, age, even education; individuals can own a business that can secure their future.
We at The Franchise Consulting Company would be glad to help you learn how you too can reach the goal to secure your future!