This story appears in the
September 1999 issue of
Entrepreneur.
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A "memorandum of understanding" was recently reached
between the SBA and the International Franchise Association (IFA)
to promote franchise ownership among minorities, women and
veterans. Together, they're also urging lending institutions to
help bring franchising into economically distressed areas by
increasing loan volume to qualified members of these
underrepresented groups.
"As people become more versed in the process and
profitability of [franchising], they see it as a viable alternative
to opening their own businesses," says Debbie A. Smith,
IFA's vice president of public affairs and emerging markets.
"At the same time, franchisors haven't necessarily gone
after ethnic minorities or women [as a population]. They've
probably just looked at whomever walked through the door."
To give prospective franchisees in targeted arenas the gumption
to walk through those doors, the IFA (with SBA assistance) is
educating both parties with its Franchise Trade Delegation program.
Franchise opportunities have already been extended to seekers in
Miami; Washington, DC; and Charlotte, North Carolina. The next
delegation is scheduled for November in New York City.
Regional educational conferences are another facet of this
partnership. Here, prospective and current franchisees can hear
answers to more complex questions regarding UFOCs, expansion,
venture capital and state programs. Baltimore will host
October's upcoming conference.
Strategic alliances with The Urban League, NAACP and National
Association of Black Accountants, among others, should strengthen
the mission. Says Smith, "All these organizations talk about
economic dependency for ethnic minorities and women. Franchising
really can [provide] that."
Contact Source
International Franchise Association, (202) 628-8000,
http://www.franchise.org