Coming Attractions

If you knew there was a billion- dollar market that you weren't reaching, smart business sense would tell you to move in. And that's just what major franchisors are doing with minority franchisee programs.

"You're seeing the larger and more economically sound franchisors going into [minority] communities and working with community groups, local financial institutions and business organizations to find people for [local] franchises," says Jerry Wilkerson, president of Franchise Recruiters Ltd., a Chicago-based franchise executive management search firm.

These actions, says Richard-Abraham Rugnao of the U.S. Hispanic Chamber of Commerce (USHCC), result in good customer service from the corporate level. "As the Hispanic market continues to grow, companies are seeking Hispanic franchisees for neighborhoods with a large Hispanic community," says Rugnao. "Ultimately, this shows sensitivity to the needs of that community."

Here are some of the programs we've seen of late:

• Burger King Corp. signed a "Memorandum of Understanding" with the U.S. Department of Commerce's Minority Business Development Agency to combine their efforts in finding qualified minority franchisees.

• Churchs Chicken signed an agreement with The Branch Companies, an African-American-owned franchise development firm, to open 10 restaurants over the next five years in the Houston area.

• Sterling Optical joined forces with the Neighborhood Franchise Program, an organization designed to lure franchisors to underserved inner-city neighborhoods in New York City, to open a store in Harlem.

• Southland Corp. is working with U.S. Hispanic Chambers of Commerce to identify potential Hispanic franchisees for its 7-Eleven chain.

• Blimpie International Inc. has developed an Urban Expansion Initiative to place franchises in Empowerment Zones and Enterprise Communities, with plans to waive initial franchise fees for 200 franchisees and reduce franchise fees for another 300.

This article was originally published in the January 1999 print edition of Entrepreneur with the headline: Coming Attractions.