Franchise 2000: The Gold Mine Is Minority Franchising.Franchises have long been touted as great buys for new entrepreneurs because of their support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services and long-term profit potential. Now as the millennium draws nearer, several franchisors are meeting the challenge and demands of a diverse marketplace by scouting scouting: see Boy Scouts; Girl Scouts. scouting Activities of various national and worldwide organizations for youth aimed at developing character, citizenship, and individual skills. Scouting began when Robert S. for candidates and developing franchisees to serve urban and inner-city markets. Some have even instituted formal policies and specialized programs to address the unique needs of these communities and their customers. In fact, franchisors have formed a joint partnership, with several community-based organizations, lending institutions Noun 1. lending institution - a financial institution that makes loans financial institution, financial organisation, financial organization - an institution (public or private) that collects funds (from the public or other institutions) and invests them in , local government agencies and the International Franchise Association called The Community Trade Delegation Program. It's primary goal is to increase minority participation within various franchise systems. Across the nation-from New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of pavements and skyscrapers to California hills and valleys-golden opportunities can be found in franchising. Franchisors are rolling out national special advertising campaigns, training programs and operations support systems Operations Support Systems (also called Operational Support Systems or OSS) are computer systems used by telecommunications service providers. The term OSS most frequently describes "network systems" dealing with the telecom network itself, supporting processes such to attract and retain minority franchisees. Many are forming strategic alliances with such groups as the NAACP NAACP in full National Association for the Advancement of Colored People Oldest and largest U.S. civil rights organization. It was founded in 1909 to secure political, educational, social, and economic equality for African Americans; W.E.B. Du Bois and Ida B. , National Urban League, National Bankers Association, National Black Chamber of Commerce The National Black Chamber of Commerce (NBCC) was incorporated as The National Black Chamber of Commerce, Inc., in 1993. It is a nonprofit, nonpartisan, nonsectarian organization dedicated to the economic empowerment of African American communities. and the National Black MBA Association The National Black MBA Association is a professional association for African Americans with a Master of Business Administration. The National Black MBA Association was formed in 1970 and currently has 40 chapters and 6000 members in the United States. . Others are helping minorities find financing from various sources, including the federal government's Urban Empowerment Zone and Enterprise Community Initiative, Banker's Trust's Urban Development Program, and Wells Fargo's Contribution Guideline guideline Medtalk A series of recommendations by a body of experts in a particular discipline. See Cancer screening guidelines, Cardiac profile guidelines, Gatekeeper guidelines, Harvard guidelines, Transfusion guidelines. Program. To date there are about 600,000 franchised small businesses across the country, which account for $1 trillion in sales, totaling about half of all U.S. retail sales, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the International Franchise Association in Washington, D.C. These figures reflect that franchising is still one of the fastest growing business segments in the country. For African Americans African American Multiculture A person having origins in any of the black racial groups of Africa. See Race. interested in entrepreneurship and urban development, franchising offers a tried and existing format to running a trademark business. It also affords them the flexibility of choices, such as working from home, and many different options of businesses to start-some involving modest costs and others costing hundreds of thousands of dollars. Franchisors are seeking to attract minority candidates from a wide variety of backgrounds. Some have financial and investment experience. Some are former professional athletes. Still, others are downsized corporate professionals. Moreover, franchisors are taking great pains to identify African Americans who can own and operate not just a single franchise, but five, ten or even more properties in the near future. BLIMPIE The world's largest publicly held submarine sandwich franchisor with nearly 2,000 locations worldwide, Blimpie has embarked on urban expansion initiative aimed at America's inner-cities. The program is available to qualified entrepreneurs who currently reside or are willing to relocate re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. and operate a Blimpie Subs and Salad franchise in urban Empowerment Zones and Enterprise Communities throughout the country. These cities are part of the U.S. Department of Housing and Urban Development's (HUD Hud (h  d), a pre-Qur'anic prophet of Islam. Hud unsuccessfully exhorted his South Arabian people, the Ad, to worship the One God. ) designated areas for urban renewal and
redevelopment. Under the program, Blimpie will waive To intentionally or voluntarily relinquish a known right or engage in conduct warranting an inference that a right has been surrendered.For example, an individual is said to waive the right to bring a tort action when he or she renounces the remedy provided by law for such the initial franchise fee of $18,000 on up to 200 franchises. "We have templated a program using Atlanta as the first target city, followed by Detroit. Plans are underway for a national roll out this fall," says Stan Friedman, Blimpie Group Vice President. "Typically, a franchise candidate has to bring to the table a 50% to 60% investment of what it costs to open a Blimpie's. "Now they can finance their store's assistance and availability of credit through Empowerment and Enterprise Zones, Welfare-To-Work and other initiatives." Blimpie's encourages minority candidates to utilize the one stop capital shops designated by the 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 to make available technical (e.g., business plan preparation) and financial assistance to entrepreneurs. "These one stop capital shops provides an infrastructure that is compatible with our franchise program," says Friedman. "We want franchisees who have the right stuff but feel it is impossible to pursue this type of dream. But more than experience, we are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. candidates who possess that entrepreneurial drive." COVERALL cov·er·all n. A loose-fitting one-piece work garment worn to protect clothes. Often used in the plural. Noun 1. coverall - a loose-fitting protective garment that is worn over other clothing David Berkley, executive director of The Martin Luther King Economic Development Corporation in Milwaukee recently acquired a commercial cleaning franchise package from Coverall Cleaning Concepts worth $20,000 in customer accounts. Berkley received financial backing in the way of a government grant because his business will create employment opportunities for those within inner-city communities and may train future Coverall franchisee hopefuls. The non-profit community development center will headup the Martin Luther King Environmental Services The various combinations of scientific, technical, and advisory activities (including modification processes, i.e., the influence of manmade and natural factors) required to acquire, produce, and supply information on the past, present, and future states of space, atmospheric, Inc. as part of its other commercial and residential rehab services. Working in conjunction with the Minorities in Franchising Committee, Coverall hopes to develop and roll out the grant-based program nationwide later this year. Through Coverall's system, franchisees receive assistance in securing SBA guaranteed loans and other financing, equipment leasing Equipment Leasing is a financing option to lease equipment for a certain amount of time. Leasing Benefits
and trade shows in search of qualified franchise candidates, who can obtain training, equipment and existing customers for as little as an initial investment of $1,500. The company also hosts educational business seminars at its local offices directly targeted at minorities. Coverall representatives "get the word out" through local display ads, advertisements in minority publications and appearances on minority radio programs. "We always feature minorities in our ads proving there is truly a business opportunity with Coverall, that you can be successful in your own business and proving that you can obtain your own dream," says Amy James, Coverall's Director of Marketing. DENNY'S With over 1,700 Denny's Restaurants located across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and abroad, the family restaurant chain is dedicated to growing its trademark in inner-city and urban markets. A key factor in the growth of its franchise system is recruiting, training and developing minority franchisees. Over the last couple of years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time number of Denny's franchise systems owned and operated by minority franchises has grown to 36% (for African Americans, 16%). "It takes a great deal of effort, focus and determination to actively pursue good franchisees and to diversify our systems to mirror our customer base," says James W. Lyons, senior vice president, franchising and development. "We are looking for candidates with the financial wherewithal where·with·al n. The necessary means, especially financial means: didn't have the wherewithal to survive an economic downturn. conj. Wherewith. pron. Wherewith. and operational ability to run a Denny's. Our goal is to help to ensure that folks are successful once they come into our system." In an effort to scout minority candidates, Denny's representatives attend hotel/motel conventions, trucks stop conventions, and restaurant leadership conferences as well as those trade shows and business expos specifically geared towards minorities, including the NAACP's annual convention and Black Business Expo. In terms of financial programs, Denny's has formed a joint agreement with Fanova, a commercial lender Whilst nearly all lenders offer loans on a commercial basis the term commercial lender has differed meanings around the world.
"Denny's greatest strength lies within its invisible assets invisible assets npl → activo invisible invisible assets npl (Brit) → actif incorporel invisible assets npl (BRIT ," says Leighton Hull, a Denny's multi-unit franchisee and president of Golden West Foods Corp. "These assets are not reflected on the financial balance sheet, but include consumer trust, brand image, experience, management savvy, and franchisor/franchisee joint competitive focus. With franchisee input, Denny's has repositioned itself as America's number one diner diner, restaurant resembling the railroad dining car that is its source. In the mid-19th cent., the first dining cars that appeared on trains were nothing more than an empty car with a fastened-down table. George M. . It's a good time to be a part of Denny's." EXPRESS PERSONNEL SERVICES Express Personnel Services provides employment services, including full-time and temporary placement. The company boasts nearly 400 locations employing more than 250,000 people annually. Franchises receive support in the way of research and development, marketing, advertising and ongoing training. "We are expanding our advertising and promotional reach to make the awareness factor better among minorities," says Linda Haneborg, Vice President of Marketing. Express Services offers assistance in helping franchisees secure SBA guaranteed loans and other external financing In the theory of capital structure, External financing is the phrase used to describe funds that firms obtain from outside of the firm. It is contrasted to internal financing which consists mainly of profits retained by the firm for investment. . To get into the business, franchisees need between $90,000 to $140,000 in capital. In sync with the push for multi-franchise entrepreneurs, Express provides ownership to protected territories. "At Express we spend a great deal of time locating, retaining and further developing our franchisees and temporary associates," says Robert A. Funk, founder and chairman of the board. Initially, franchisees participate in three weeks of intensive training. Express also provides 100 percent financing of payroll for associates, invoicing for customers and handling of payroll reporting. "We are seeking candidates with a background in sales, marketing, management, and human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. . This is a relationship type business," says Haneborg. "If the franchisee has had experience working with people he/she is more than likely going to be successful." GENERAL NUTRITION CORP. A leading retailer of products designed for health and wellness and personal self-enhancement, General Nutrition Corporation has a strong international chain of more than 3,000 stores. GNC GNC General Nutrition Centers GNC Gas Natural Comprimido (Argentina) GNC Guidance, Navigation, and Control GNC Grand National Championship (ATV racing) GNC Global Navigation Chart has implemented a program geared towards urban development through the International Franchise Association and Local Initiative Support Corporation which provides financing to qualified minority franchisees. "If you are genuinely interested in nutrition, health, diet, fitness, and sports programs, than you are the type of candidate we are seeking," says Russ Cooper, GNC, Senior Vice President and General Manager of Franchising. "Our stores cater to a type of lifestyle." GNC provides direct financing direct financing The raising of funds without using an intermediary. For example, a firm may decide to save an underwriter's fee by offering new securities directly to investors. , cash management, site assistance, and company-signed leasing to qualified entrepreneurs. Of total start-up costs of $130,000, GNC will loan about $80,000 to $90,000, which covers the franchise fee, fixtures, equipment, infrastructure, build out of the store, payroll and inventory. "We have a simple business format franchise; we can train the right candidate with personality and good sales dynamics," says Cooper. "Our competitive edge is our customers. We want people who know how to build trust." MOBIL One of the world's largest oil companies in the world, Mobil Corporation is making attempts to change the diversity base of its network of more than 2,500 franchise dealers across the country. Outreach efforts includes the sponsorship of conferences, festivals and seminars affiliated with black groups such as African American Women On Tour, Urban League, and 100 Black Men. Mobil's Franchise Recruitment Selection and Diversity Marketing groups are working hand in hand to reach out to minority communities nationwide. "We have a lot of opportunity in front of us," says David Calhoun, a franchise marketing executive with Mobil's recruitment selection group. "It is not an issue of moral responsibility. Mobil recognizes the value of the minority community in terms of its customers and the products they purchase (especially at a premium), the frequency of visits to our stores and the regular upkeep of their cars." African Americans seeking to run and own a gas station can take advantage of a special purpose credit program where Mobil serves as a guarantor guarantor n. a person or entity that agrees to be responsible for another's debt or performance under a contract, if the other fails to pay or perform. (See: guarantee) GUARANTOR, contracts. He who makes a guaranty. 2. on loans. "We are looking for people who have had a track record of supervisory experience," says Calhoun. "The ideal candidate has owned a business and understands the tax issues, profit and loss statements, insurance, personnel and other areas as it relates to running and owning a business." SUBWAY subway: see rapid transit. subway Underground railway system used to transport passengers within urban and suburban areas. The first subway line, 3. A leader in submarine and salad franchises, Subway seeks to bolster minority ownership in urban markets through various initiatives, including HUD Empowerment Zones and Enterprise Communities and a neighborhood franchise program, which is in conjunction with the International Franchise Association, Bankers Trust The Bankers Trust is a historic American banking organisation that was acquired by Deutsche Bank in 1998. It was originally set up when banks could not perform trust company services. and the Local Initiatives Support Corporation. Initially launched in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , Bankers Trust and LISC LISC Local Initiatives Support Corporation (New York, NY) LISC Little Illini Soccer Club (Champaign-Urbana, Illinois) LISC Long Island Subaru Club LISC Laboratory for Intelligent Systems and Controls provide financial assistance, up to 80%, to qualified minority franchisees. In addition, individual entrepreneurs work with local community development corporations, which provide technical and other support to help them enter the franchise system. Subway offers others financial assistance by financing 90% of the franchise fee, $10,000, for qualified minority prospects as well as about $40,000 worth of equipment leasing. "We are seeking candidates with good common business sense, the ability to work within a structured franchise system, and a willingness to be involved in the day-to-day business. We want hands-on owner operators," says Don Fertman, Subway's director of franchise sales. The company is in the process of rolling out an extensive strategic plan to help its franchisees stay competitive, reach out to new customers and become more profitable in the year 2000 and beyond. WENDY'S One of the fastest growing restaurant companies in the quick service industry, Wendy's is seeking to expand its franchise base to reflect a more diverse marketplace. Its nationwide franchise development program embraces urban and inner city communities. To help identify and recruit minority candidates, Wendy's is actively building alliance partnerships with such groups as the Urban League, Black Chamber of Commerce and National Black Bankers Association. Wendy's seeks individuals who have management PSL 1. PSL - Portable Standard Lisp. 2. PSL - Problem Statement Language. See PSL/PSA. experience in food service, hospitality, or retail industries, the flexibility to relocate, a commitment to devote 100% of one's business time and effort to the franchise, and unencumbered Unencumbered Property that is not subject to any creditor claims or liens. Notes: For example, if a house is owned free and clear (meaning the owner owes no mortgage to anyone), it is unencumbered. assets of 570,000. "We are looking for potential franchisees who have the opportunity to be successful and the location of the stores is critical to that success," says Steven Warren, Wendy's Vice President of Corporate Affairs. Wendy's provides support in three areas: operations, financing, and training. Its financial support system includes both internal and external funding sources, from a start-up standpoint for new franchisees getting into the system, to the developmental stage for an existing franchisee who seeks to build or develop new stores. Warren adds, "We use all of these sources to enhance the participation of minorities within the Wendy's system." SIGN-O-RAMA "We look for entrepreneurs who want to run and manage their own business but want the benefits that a global company has to offer; mass 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. , advertising, etc.," says Ray Titus. Our business knowledge from over ten years of franchising yielded impressive results in both stores. In late 1987, we began franchising SIGN-A-RAMA[R] Full Service Sign Centers. Today, we have franchise owners from coast to coast and in many countries, from all different walks of life, following a proven business concept. SIGN-A-RAMA[R] understands that obtaining financing on your own can be a very difficult process, so we have secured financing for the entire equipment package for qualified individuals. We are very proud to be able to help so many individuals get into their own franchise because it's not a person's net worth that will determine their success. It's a combination of a lot of different features like hard work, determination, commitment, reliability, and, of course, following our proven, effective program. SOURCES: Franchisors interested in developing franchises in inner-city neighborhoods and urban markets are pursuing and maintaining relationships with black civic and business organizations. To learn about franchise opportunities contact: Minorities In Franchising Committee International Franchise Association 350 New York Avenue, NW, Suite 900 * Washington, DC 20005 202-628-8000 www.franchise 1.com American Association of Franchises and Dealers 1420 Kettner Blvd., Suite 415 * San Diego, CA 92101 619-215-2s56 National Congress of Community Economic Development Corps. 11 Dupont Circle, NW, Suite 325 * Washington, DC 200036 202-234-5009 National Black Chamber of Commerce 2000 L. St., Suite 200 * Washington, DC 20036 202-416-1622 www.nbcc-e.train.org. National Urban League 120 Wall Street, 8th Fl. * New York, NY 10005 212-558-5300 www.nul.org |
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