For Your Success
National Minority Franchising Initiative...Franchising for the Future
By Rob Bond and C. Everett Wallace, co-founders, National Minority
Franchising Initiative

Franchising touches virtually every aspect of our lives. In 2005, the International Franchising Association (IFA) stated that there were over 3,000 franchise brands örepresenting products and services from fast food to tax services to child development to printing services. According to a study conducted by the IFA in 2001, franchised businesses operated 767,483 establishments in the United States, provided 9,797,117 jobs, met a $229.1 billion payroll and produced $624.6 billion of output.

While the data on the number of franchises owned by minorities is scarce, most in the industry would agree that minorities are substantially underrepresented. Because of this imbalance, there is a popular and growing belief in the franchising community that this underserved population represents the future of franchising. Justifications include:

• In 2002, minorities collectively represented $2.0 trillion in buying power; according to current projections, that number will grow to $2.9 trillion by 2007.
• In 2004, African Americans spent an estimated $723 billion and that number is projected to reach nearly $965 billion by 2009.
• If these estimates are realized, African American consumersâ spending power will soon account for nine cents of every dollar spent.
• Franchisors have come to realize this economic impact and to acknowledge that minorities not only represent a ripe market that should be tapped, but that they will in fact drive the demand in the future as more and more minorities become franchise business owners.

The under-representation of minorities in the franchise world clearly presents a real window of business ownership opportunity for African Americans. In the past few years, the National Minority Franchising Initiative (NMFI) has worked with several of its sponsors including Accor North America, YUM Brands, Cendant, Express Personnel Services and the Athleteâs Foot to develop outreach and recruitment programs aimed at expanding the number of minority franchisees in their ranks. All of these programs have been developed to encourage growth and expansion in these new emerging markets.

Furthermore, franchisors are also witnessing a greater degree of multi-unit ownership by minorities, and as well as a noticeable increase in business ownership by athletes, celebrities and other prominent businessmen. Magic Johnsonâs Fridayâs, Burger King, 24-Hour Fitness, Hank Aaronâs Churchâs Chicken, Popeyeâs and Krispy Kreme, Gladys Knightâs Gladys & Ronâs Chicken & Waffles, Mike Jonesâ the Athleteâs Foot and Bob Johnsonâs Marriott hotels represent some of the high profile minority franchisees. Whether the franchise is a fast food restaurant or a hotel, located in the inner city or suburbia, it represents a significant accomplishment: a marked increase in franchise ownership by African Americans and, in most cases, an opportunity to give back to the community by providing jobs, training and infrastructure in previously underserved communities.

The NMFI is the only franchise organization dedicated solely to connecting the franchise industry to the minority community. NMFI believes that there is a continuing unmet desire within the minority community to develop more branded businesses that are owned and operated by individuals from within their own communities. In addition to adding to the tax base, these businesses provide jobs and a local investment in the neighborhood. NMFI has joined with Global Diversityâs Tour for Success to deliver a ¸ day seminar, ãFranchising the Future,ä that will provide substantive information about the opportunities available for business ownership through franchising. NMFI encourages building assets through franchise ownership, as well as utilizing franchise concepts to revitalize underserved communities. The seminar provides an opportunity to learn about the complexities of franchising, as well to explore the myriad (2,800 separate franchise systems) of franchise opportunities.

Franchising combines an exceptional blend of operating independence with a proven system that includes a detailed blueprint for starting and managing a business, as well as the all important on-going support. Your ultimate success as a franchisee will be determined by two factors: the research you do at the beginning and your commitment to work hard and follow the rules.

For more information, visit www.minorityfranchising.com. Mr. Bond and Mr. Wallace will participate in the 2006 Tour For Success events, which will be offered in five cities nationwide: Foxwoods Resort Casino at Mashantucket, CT; Atlanta, GA on September 22, 2006 at the Marriott Marquise Hotel; Chicago, IL on October 7, 2006 at the Hyatt Regency McCormick Place; Washington, DC on November 7, 2006 at the DC Renaissance Hotel; and Miami, FL on December 9, 2006 at the Hyatt Regency Hotel.