USA Today’s Franchising Today: 50 Top Franchises for Minorities 2013

by Rob Bond and C. Everett Wallace

The National Minority Franchising Initiative (NMFI) recently completed its seventh annual survey to analyze the progress of minorities within the franchising community. From over 400 detailed responses, two overarching conclusions can be drawn. First, the overall percentage of minority participation in the franchise industry continues to grow. Second, while ownership among African-Americans has increased, there have been substantial increases in the number of Hispanics, Asian-Americans and Other (generally Indian and Middle Eastern) minorities who own franchises. Although there is no conclusive way to interpret this increase from the returned questionnaires, our sense is that these groups are attracted to the business by three primary factors: 1) Technical and/or language skills are not required in many of the industries highlighted; 2) The cost of entry is generally modest; and 3) Franchisor management has specifically prioritized the aggressive recruitment and on-going support of these groups. The long-term key here is on-going support.

The questionnaire, designed by NMFI (a subsidiary of the World Franchising Network), asked franchisors two primary questions: 1) List the minority (African-American, Asian-American, Hispanic, South Asian, etc.) participation among franchised and company-owned units, and 2) indicate the minority representation among senior management. From the 400+ questionnaires returned, we selected 50 companies that are clear leaders in the industry. The subsequent list of 50 Top Franchises for Minorities is an excellent starting point in your search for an optimal franchise that meets your needs, experience and financial capabilities. While the percentage of minority participation is certainly a factor in the selection process, your primary focus should be on a company’s reputation within the marketplace, their on-going support of their franchisees, their financial stability, and whether you can make a return on your investment (both financial and time committed) as a franchisee. The single most important factor, however, though it is difficult to determine, is the success and happiness among the existing franchisees, particularly the minority segment.

If you are considering investing in a franchise, the NMFI has various resources (detailed franchisor profiles, links, access to publications, FDDs, Item 19s, etc.) that could be of assistance. Our advice is to always do your homework.

50 Top Franchises for Minorities

Selected by the National Minority Franchising Initiative – NMFI