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Women and Franchising
By Pamela Gold
Welcome to a new age for women in the franchise industry! We live in a world with mothers raising families on their own, a day when many women are receiving higher educations, and a time when many women prove that they can earn a good living for themselves and their families. Women are embracing business ownership, positions of leadership, and the franchise industry and today many organizations and services are emerging to assist women franchisees. 10% to 15% of the franchise industry is made up of women and the future looks bright.
Franchising Then and Now - A Perspective
Linda Burzynski, President and CEO of Computer Moms, a highly successful franchise that offers customers personalized, at-home computer training, has been involved with franchising for almost 18 years. When she first became involved, there was literally only a handful of women franchisees and franchisors: "When I would attend franchise association meetings, there were so few women there. It was interesting to say the least!"
"When I first became involved with franchises 18 years ago, the franchise selling process was very intimidating: The point was simply to sell franchises. As women have become involved in franchising, they've brought a depth of understanding to the entire community regarding how to effectively match a franchise with a franchisee. Women brought in the idea of strong communication and reading between the lines to really match the right person with the right franchise, instead of just selling a franchise to sell a franchise. As more women have become involved, this process has really been mended and a sense of open communication and understanding has developed," stated Linda.
"Today, the franchise industry is really starting to represent the real world. More and more, culture and gender within the franchise community is balancing out and looking more like real society. Women and minorities are becoming more involved as both franchisees and franchisors. The numbers are not 50/50 for men/women yet, but we're getting there!"
A big change that Linda has noticed is that today, communication is key. Franchisors listen to their franchisees. "Some of the best ideas come from our franchisees because they are in the field, making the franchise happen. I think this strength in communication is due to the increase in and influence of women in franchising," Linda said.
"I'm very excited about the future of franchising. I believe there will be more women franchisees and more women leading franchise companies. Today, the rate of women opening businesses is almost twice the rate of men opening new businesses. Although not equal to this incredible rate, the trend is reflected in the franchise world as well and I am confident that it will continue into the future. The franchise community is looking and feeling more like the real world every day," stated Linda.
International Franchise Association's Women's Franchise Committee
The International Franchise Association (IFA) has a Women's Franchise Committee (WFC) currently made up of 16 members. The 16 members act as the committee's advisory board with the responsibility of developing programs that will further the cause of women in franchising.
The committee coordinates leadership conferences and many activities that are for and/or about women and franchising. Often, the committee happily sees many men at their conferences and seminars, men involved in the franchise industry that are interested in learning about women and the positions they are etching in the franchise community.
The WFC recently commissioned a task force to develop The WFC Franchise Network. This task force is currently selecting cities throughout the country that have a strong representation in the franchise community and helping them organize quarterly meetings for local women in franchising to share ideas and build a support network. The local chapters will fall under the umbrella of the IFA's WFC and participants will be invited to participate in future national WFC events and initiatives. The committee plans to launch the first local level meeting in Denver at the end of this month, with subsequent meetings planned through the end of the year. Then, networks will be formed in other areas: Atlanta, Dallas, and Minneapolis, for example.
Financing for Women-Owned Businesses
Special interest banks and financial institutions are rapidly looking to assist women in starting their own businesses. In fact, the Small Business Association (SBA), who grants SBA loans to men and women who want to become entrepreneurs, has formed a partnership with a variety of women's business groups. The SBA has signed partnership agreements with 15 leading professional women's organizations so that they can more effectively reach women entrepreneurs and share with them information about SBA programs. Organizations include, The National Association of Women Business Owners, The National Federation of Black Women Business Owners, Business and Professional Women/USA, National Association of Female Executives, and many others. Additionally, the SBA has more than tripled the number and dollar value of approved loans to women entrepreneurs since 1992.
If you're having problems getting a loan, there are SBA loans that are easier to receive, if you meet the SBA's special criteria. For example, there is a program available which is designed to assist minority and women borrowers in developing viable loan application packages (7(a) Minority and Women Prequal). Find out more by searching for information on the Internet, and by contacting a financial expert.
Angel investors are another option for those trying to finance their new business. There are angel investment clubs with women in mind. WomenAngels.com is a new angel investment club designed to help women investors in the Mid-Atlantic region capitalize on the explosive growth in entrepreneurial activity and venture financing. The club is the first women's angel investment club in the country and wishes to act as a catalyst for the female angel community.
Interesting Facts
Some interesting facts and trends are apparent when it comes to women and franchising:
- In study after study, as the price of a franchise increases, the number of women franchisees decreases. Women tend to own less expensive franchises, particularly when they own them on their own, without a partner.
- Women and minorities have taken franchises where they could never go before. From market areas to products and services, without the involvement of women and minorities in franchising, certain markets would not be successfully tapped.
- The number of women-owned franchises is not increasing in the same proportions and at the same very high rate as the number of women-owned businesses.
- Mentoring programs, such as the program being developed by the IFA's WFC, has the goal of helping women gain leadership roles within the franchise community. The ultimate goal is to attract more women to the community as both franchisees and franchisors.
Additional Sources of Information on Women and Franchising:
International Franchise Association's Women's Franchise Committee - http://www.franchise.org/FranchiseeSecondary.aspx?id=22132
Women and Franchising Page: http://www.whichfranchise.com/women/index.cfm
Additional Sources of Information on Women and Business:
Minority Business Entreprenur: http://www.mbemag.com
Online Women's Business Center: http://www.onlinewbc.gov
Women's Business Development Center (WBDC): http://www.wbdc.org
National Women's Business Council (NWBC): http://www.nwbc.gov
National Association of Women Business Owners (NAWBO): http://www.nawbo.org
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