Pushing forward: is enough being done in the franchise industry to encourage diversity? An expert has his say

Entrepreneur, Dec, 2005 by Sara Wilson

Do you have an estimate of what percentage of minorities own franchises?

Our [organization] estimates that probably less than 8 percent to lo percent [of franchisees] are minorities. This country is rapidly [approaching] 30 percent minority, so there's still a long way to go.

With these figures in mind, what does the future look like for minority franchising?

I think it looks very good. The increased emphasis that the IFA is placing on minority franchising opens up opportunities for more minorities to become involved in the future. If you look at McDonald's, for example, it has a very good record. One of the reasons, in my opinion, is that McDonald's accepted the notion of market segmentation as a way of advertising their products. They started--back in the '60s--understanding that it would be good for them to have people of color representing those communities of color that their brand was going to show up in. If you look around, you'll find that there's kind of a [viral] thing going on, because what a franchisee does is call up his brother-in-law and say, "I'm making crazy money here. You should try to get involved with it" That's truly how it's happened [with] other brands.

That's why I go back to the relationship thing. You [say to] people you know, "I've got a great opportunity; you should try to get involved with it," and the next thing you know, I have my cousin or brother or sister and it just turns out that we're all Italian or we're all Irish. It wasn't because we planned it that way. It's because those were the people I knew best, so when I had an opportunity, those are the folks I picked up the phone and called.

RELATED ARTICLE: No minor feat.

THIS FRANCHISEE DIDN'T LET THE LACK OF A MINORITY PROGRAM STOP HER.

In July 2004, Dresdene Flynn-White purchased an Action International franchise in Alpharetta, Georgia, becoming the franchise's first African-American female franchisee. The position did not daunt her, nor did the franchise's lack of a minority program. What mattered was whether the core culture of the business-coaching franchise embraced diversity and welcomed change. So she called female Action International franchisees worldwide with some questions before making the purchase. Says Flynn-White, 56, "I wanted to know about the receptivity to diversity and to women, and I was thrilled with the response I got."

Thus, Flynn-White set out to fulfill her goal of serving minority business owners throughout Georgia. Along the way, she has discovered that her ethnicity and gender actually work in her favor. As an African-American, she can easily establish a natural connection with minority clients. And as a woman, she's been able to persuade even white, male business owners to let down Some of their barriers. Says Flynn-White, "it's about relationships, and getting people to open up and say, 'I need help.'"

Flynn-White overcame one of the biggest obstacles--the approximately $100,000 in startup costs--with money she saved while working in positions such as vice president of human resources for national initiatives at Kaiser Permanente. However, she says there are enough resources available to help all minorities realize their dreams, including Count Me in, a New York City-based organization geared toward helping women establish their economic independence. Says Flynn-White, "If it's the franchise for you, if you've done the homework and you say, 'Yes, this is what I really want to do,' then dig in and find the resources to get what you need." Flynn-Whites goal is to end the year with $100,000 in sales.