The Entrepreneur’s Source Franchise on Incentives for Minorities Investing in Franchises
With the increasing number of minorities making up the U.S. population – reaching 49 percent – many of these individuals are turning to entrepreneurship, and specifically franchising. Franchising has been an attractive career path for minorities because it offers people a chance to acquire new skills, pursue a different career path, likely even one that offers individuals more control over their desired Income, Lifestyle, Wealth and Equity goals. .
Due to this increased attraction and franchise’s desire to strengthen their image among minority groups, numerous franchise businesses have begun to proactively recruit minority franchisees to help diversify their brands. With franchisor’s increased interest in recruiting minority franchisees in accordance with the shifting American demographics, an increasing number of franchisors are beginning to offer discounts to minorities, including ethnic minorities, women and veterans. Below, The Entrepreneur’s Source franchise discusses the common incentives offered to minorities in franchising.
The Entrepreneur’s Source Franchise on Three Types of Incentives Offered to Minorities
- Initial Franchise Fee Discount: When going through the process of purchasing a new franchise, franchisees must pay a one-time franchise fee. This allows the franchisee to use the franchise’s brand, systems and the ability to receive support from the franchisor in regards to training, management and marketing. These fees can be pricy, starting as low as $20,000. However, many franchise systems offer a waiver or a discount on this one-time fee to further incentivize minorities to invest in their specific franchise. This type of assistance is the most popular incentive for minorities. For example, FASTSIGNS® franchise offers minorities 45 percent off of their initial franchise fee – reducing their initial investment to just above $12,000, making this more affordable to franchisees. These types of incentives can be usually be found on franchise’s unique websites or by discussing franchise opportunities with an alternative career coach with The Entrepreneur’s Source.
- Financing Assistance and Other Discounts: The initial franchise fee discount isn’t the only cost associated with opening a franchise. New franchisees incur other fees, such as money associated with supplies, rent, utilities, equipment, maintenance, uniforms and more. To help fund these supplemental payments that franchisees will face, many franchises also offer financing assistance and discounts toward charges other than the initial franchise fee. These types of incentives are the second most popular among franchise brands.
- Administrative/Development Support: Although this is a rarer incentive, some franchisors may offer minority franchisees administrative and development support that goes much beyond the support that they offer non-minority franchisees. This type of support tends to be need-based and the amount of support may vary on a case-by-case basis.
For minorities who are looking to get involved in franchising, the exploration of these different types of incentives can help turn your dreams of self-sufficiency into a reality. The Entrepreneur’s Source franchise has helped many minority entrepreneurs become franchise business owners with the aid of available incentive programs in the past. For more information about minority incentives and programs, contact an alternate career coach at The Entrepreneur’s Source franchise today.