A new take on "show me the money:" the franchise diversity and development initiative.Ask anyone interested in securing a franchised business what the number one abstacle is in taking the plunge The term Plunge has multiple meanings:
tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the cost of franchising, including those that incorrectly suggest that all franchises are too expensive to obtain or it costs more to open a franchise business than an independent business. When potential franchisees are enlightened about the cost, the challenge of securing capital may still remain for those who have no idea who to talk to or where to start. Coordinating all marketing and development activities, the IFA Immunofluorescent assay (IFA) A blood test sometimes used to confirm ELISA results instead of using the Western blotting. In an IFA test, HIV antigen is mixed with a fluorescent compound and then with a sample of the patient's blood. Educational Foundation links FDDI (Fiber Distributed Data Interface) Often pronounced "fiddy," it was a LAN and MAN access method that had its heyday in the mid-1990s. FDDI was an ANSI standard token passing network that transmitted 100 Mbps over optical fiber up to 10 kilometers. into its existing MinorityFran program. How does one locate financing with the most advantageous term? How does one locate a new retail site? Are there tax credits for which your franchise system may be eligible? If these questions have been raised or have not been on your radar screen, consider the Franchise Diversity and Development Initiative. The FDDI is easing the process to securing funding especially for women and minorities. Launched to a packed room at the Diversity Summit during the recent International Franchise Association's annual convention in February, the program has been busily spreading the word about its services. The goals of the program are to: * Assist franchise companies in taking advantage of growth potentials in urban locations by providing turnkey See turnkey system. , one-stop shopping for financing, local, tax credits and operational support; and * Increase the number of women and minority owned franchises in one of the last, best, untapped growth areas in domestic markets. Meet the FDDI Partners The FDDI was created to assist franchise systems tap into new markets and to assist in the development of minority- and women-owned franchises and franchises located in underserved communities through recruitment and awareness, financing support, strategic location assistance, and operational and management support. The FDDI is led by the Metropolitan Business Collaborative, Inc. and the IFA Educational Foundation. The Metropolitan Business Collaborative is the smallbusiness support and entrepreneurship en·tre·pre·neur n. A person who organizes, operates, and assumes the risk for a business venture. [French, from Old French, from entreprendre, to undertake; see enterprise. unit of Progress Through Business, a national non-profit organization A non-profit organization (abbreviated "NPO", also "non-profit" or "not-for-profit") is a legally constituted organization whose primary objective is to support or to actively engage in activities of public or private interest without any commercial or monetary profit purposes. , supporting small, minority- and women-owned businesses through all stages of their growth, from start-up Start-up The earliest stage of a new business venture. to Tier 1 supplier and beyond. The MBC (Multimedia Benchmark Committee) A graphics benchmark that provides MPEG-2 and other tests. See GPC. is a BusinessLINC Coalition member (led nationally by the Business Roundtable Business Roundtable (BRT), an association consisting of the chief executive officers of major U.S. corporations that was founded in 1972 through the merger of the three preexisting business organizations. ) and is a member of the national Urban Entrepreneur entrepreneur (än'trəprənûr`) [Fr.,=one who undertakes], person who assumes the organization, management, and risks of a business enterprise. Partnership. The MBC promotes and develops partnerships and joint ventures between large corporations and minority- and women-owned businesses and businesses located in the distressed communities like many of those in the nation's urban core. The MBC, in collaboration with its many organizational and business partners, has developed a pool of qualified, vetted minority and women entrepreneurs and businesspeople, with the support of a financing and operational support team to acquire established businesses, including franchises, dealerships and divestitures of major corporations. The IFA Educational Foundation works to: * Increase the knowledge and professional standards of all members of the franchising community. * Educate the next generation of franchising practitioners. * Increase recognition of franchising's key role in the free enterprise system. * Provide comprehensive information and research about important developments and trends in franchising. The FDDI relies on a network of partner companies and organizations. These partners provide a wealth of resources to support the program. The FDDI has employed a methodical me·thod·i·cal also me·thod·ic adj. 1. Arranged or proceeding in regular, systematic order. 2. Characterized by ordered and systematic habits or behavior. See Synonyms at orderly. approach to develop a national pipeline of vetted minority and women businesspeople, providing access to credible, experienced top-tier prospective minority and women owners. Financing For many minority business owners, managing short-term cash flow can present obstacles to the procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. of a new franchise. Through this program, the franchisee can obtain financing support through a multitude of bank and non-bank participating lenders for single and multi-unit deals, including: * SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government and conventional loan financing, * 7(a) loan program, * The US Department of Agriculture's Business and Industry program, * SBA Community Express commercial loan program, and * Access to the secondary market for loans, and New Markets Tax Credits. Location Support Through its real estate development and management partners and its tax credit administrator partners, the FDDI can provide site location and development assistance, and can also identify tax credits and other incentives to reduce costs and support franchises in a wide range of locations, including urban areas. Operational Support Operational and management expertise is key to the success of prospective minority business partners. Through the FDDI, franchisees can obtain needed management training and technical assistance to ensure success of the business. Additionally, the FDDI has developed a cadre (company) CADRE - The US software engineering vendor which merged with Bachman Information Systems to form Cayenne Software in July 1996. of experienced, minority-owned professional firms with particular expertise in small-business development and franchise acquisition and finance. Seminar Programs to be Launched this Spring Franchise companies and potential franchisees are being introduced to FDDI through a series of one-day "Franchise Opportunities for Women, Minorities and Veterans" seminars in major cities across the country that piggyback piggyback 1. A broker trading in his or her personal account after trading in the same security for a customer. The broker may believe the customer has access to privileged information that will cause the transaction to be profitable. 2. onto the Urban Entrepreneur Partnership program. Why is the FDDI program tapping into urban markets and minorities? These markets represent: * Consumer purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. in urban markets is more than $90 billion. * Some urban markets generate up to 40 percent greater sales per square foot than suburban locations. (Selig Center). * Ownership of businesses by women and minorities is growing at faster rates than other groups. * Minorities represent 32 percent of the population. By the middle of this century, it is estimated that the number will rise to more than one-half of the U.S. population. * Participate in some of the fastest-growing consumer markets. * Build brand recognition among the fastest-growing segments of the population. Avoid losing sales to competitors. Last year, a study by the IFA Educational Foundation identified basic obstacles faced by minorities seeking to own a franchise and some challenges faced by franchise systems seeking to recruit minorities as franchise owners. Obstacles were categorized cat·e·go·rize tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es To put into a category or categories; classify. cat by one expert as three gaps: information, relationships and capital. The one-day seminars will include fundamentals of franchising, experiences in franchising, and funding and technical assistance. Franchise companies are also available to speak directly with prospective franchisees. The seminar essentially addresses all three gaps. The Coca-Cola Co. is the national sponsor of the seminar series. Miriam L. Brewer is director of diversity of the IFA Educational Foundation. She can be reached at 202-662-0784 or mbrewer@franchise.org for more information on upcoming "Franchise Opportunities for Women and Minorities" seminars. |
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