Here are some telling statistics: Black-owned franchises earn on average over two times more than Black-owned independent businesses. Roughly 26% of franchises are owned by people of color, versus 17% of independent businesses.
Data from Oxford Economics, provided by the International Franchise Association (IFA), offers evidence as to why franchising has long been a vibrant operating business model for Black entrepreneurs. Still, the IFA reports “franchisees of color and female owners are represented at a disproportionately high rate.”
Equipped with a rare mix of support and autonomy, franchising can be lucrative for diverse business owners. However, prospective franchise owners should be aware that running such an enterprise successfully is not easy. The bottom line: Franchising, like other investments, is no guarantee to make a killing.
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