QSR March 2023

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F R A N C H I S I NG F O RWA R D

Equitable Pathways to Ownership

How can the franchise industry break barriers and unlock opportunities

for marginalized entrepreneurs to become owners? BY CALLIE EVERGREEN

QSR FSR

Franchising can be one of the most powerful avenues for aspiring entrepre neurs of color. On average, Black-owned franchises earn 2.2 times more than Black-owned independent businesses, according to Oxford Economics. Yet, barriers to entry still prevail, especially for lower-income communities with out access to f inancing or education on the opportunities available. Indus try connections also go a long way, and a number of franchise businesses are passed on to younger generations from parents or other family members, which narrows the playing field. In recent years, the franchise indus try has been grappling with how to boost diverse representation in corpo rate leadership structures, as well as in their franchisee base. A few examples: McDonald’s U.S. committed to invest ing $250 million over five years to help candidates with socio-economic bar riers with alternatives to traditional f inancing. Wendy’s launched “Own Your Opportunity,” a franchise recruit ment initiative to create pathways to franchise ownership specif ically for women and people of color. Ben & Jerry’s waives transfer fees for existing franchisees who sell to a minority can didate. And Yum! Brands—parent of

EVERYTABLE PLANS TO SPEND MORE THAN $100 MILLION ON ITS SOCIAL EQUITY FRANCHISE PROGRAM.

Meanwhile, Everytable—a multi channel, fresh-prepared food business that f ights for food justice—commit ted to investing $100 million to bolster its Social Equity Franchise Program, which provides financial capital, train ing, and mentorship to aspiring small business owners to help them become Everytable store owners. “Long term, what that means is ownership will be a large percentage of Black and brown folks who come from backgrounds where this wasn’t an opportunity they’ve been able to take advantage of,” says Bryce Fluellen, executive director of Everytable’s social equity franchise program. “They’re our partners and will grow alongside us.” The model directly invests into marginalized entrepreneurs of color by paying qualif ied candidates dur ing the training process to become a franchise owner— {CONTINUED ON PAGE 117}

 BRYCE FLUELLEN

KFC, Pizza Hut, Taco Bell, and The Habit Burger—initiated the Yum! Fran chise Accelerator, a fellowship program designed to advance underrepresented people of color and women interested in restaurant franchising.

EVERYTABLE (2)

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MARCH 2023

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