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By Annie Barbarika and Rob Bond

This is the sixth annual survey conducted by the National Minority Franchising Initiative. As in the past, our sole intent is to acknowledge those franchisors who best demonstrate their commitment to the recruitment, inclusion and on-going support of minorities through action. Our sense is that prospective minority franchisees want to be part of a system where their ethnic or racial group is already well represented. This allows them to gain insights before becoming a franchisee, and, equally importantly, access a strong peer group to provide continuing support and encouragement.

We estimate by extrapolating from a sample of hundreds of Franchisors that are active in North America that roughly 16% of all franchises are owned by minorities. This is a vast improvement from the 8-10% participation only 10 years ago. Although this number still falls short of the 28% of minorities in the overall population, we continue to be impressed with the growing number of minorities within the ranks of the franchising community.

To qualify for the “Top 50” list, several hundred franchisors submitted information on minority participation (African-American, Asian-American, Hispanic, South Asian, etc.) among their existing franchised and company-owned units, as well as their minority representation among senior management (defined as management with an annual salary over $60,000). The highest-scoring companies are listed in the attached “Top 50” listing.

Among those companies that responded, a most welcome trend has emerged. An increasing number of franchisors have a minority participation rate of over 50% among their franchisees and company-owned store managers. Nineteen companies, each with high percentage minority participation, are noted below, along with their industry group. Two industries clearly stand out – the maintenance industry and the insurance industry. Three of the companies (UCMAS, OXXO Cleaners and Churromania) have less than 43 operating units and so were not included in the larger list, but have outstanding minority representation.

Company

Total Units

Minority Units

% Minority

Industry

Estrella Insurance

51

51

100%

Insurance

UCMAS

42

42

100%

Education

ATAX Accounting

46

45

98%

Tax/Accounting

Flame Broiler

114

111

97%

Food

OXXO Cleaners

34

32

94%

Cleaners

Churromania

13

12

92%

Food

Fiesta Insurance

84

76

90%

Insurance

Anago Cleaning

2,389

2,126

89%

Maintenance

Pronto Insurance

119

105

88%

Insurance

Jan-Pro Cleaning

10,290

9,089

88%

Maintenance

Vanguard Cleaning

2,713

2,395

88%

Maintenance

Mint Condition

234

204

87%

Maintenance

Coverall Cleaning

9,137

7,862

86%

Maintenance

Church’s Chicken

1,211

956

79%

Food

Jack in the Box

2,252

1,702

76%

Food

New York Pizzeria

56

38

68%

Food

7-Eleven

6,916

4,544

66%

Food/Convenience

Juice It Up!

86

57

66%

Food

Charley’s Grilled Subs

466

294

63%

Food

It is worth noting that five companies (Churromania, Flame Broiler, Estrella Insurance, OXXO Cleaners and UCMAS) have 100% minority management. While the above list is by no means the definitive for the selection of an optimal franchise system, it is an excellent starting point for a review of the industry.

The National Minority Franchising Initiative has various resources, including books, FDDs, links, etc. that may be useful if you are considering the purchase of a franchise.

50 Top Franchises for Minorities

Selected by National Minority Franchising Initiative – NMFI

COMPANY

WEBSITE

360clean

www.360clean.com

7-Eleven

www.7-11.com

Always Best Care Senior Services

www.abc-seniors.com

Anago Cleaning Systems

www.anagousa.com

ATAX Accounting/Financial Services

www.atax.com

Bricks 4 Kidz

www.bricks4kidz.com

Burger King

www.whopper.com

Charley’s Grilled Subs

www.charleys.com

Chem-Dry Carpet & Upholstery Cleaning

www.chemdry.com

Choice Hotels (Clarion, Comfort Inn, Quality Inn, EconoLodge)

www.choicehotels.com

Church’s Chicken

www.churchs.com

CleanNet USA

www.cleannetusa.com

Coverall Health-Based Cleaning System

www.coverall.com

Cruise Planners

www.cruiseplanners.com

CruiseOne

www.cruiseonefranchise.com

Denny’s

www.dennys.com

Doc Popcorn

www.docpopcorn.com

Estrella Insurance

www.estrellainsurance.com

Fiesta Insurance

www.fiestainsurance.com

Flame Broiler

www.flamebroilerusa.com

Franchise Source Brands (Entrepreneur’s Source, AdviCoach)

www.franchisesource.com

Honest-1 Auto Care

www.honest-1.com

i9 Sports

www.i9sports.com

Jack in the Box

www.jackinthebox.com

Jan-Pro Cleaning Systems

www.jan-pro.com

Juice It Up!

www.juiceitup.com

Kahala Brands (Blimpie, Cold Stone, Great Steak, TacoTime)

www.kahalamgmt.com

Kiddie Academy

www.kiddieacademy.com

Liberty Tax

www.libtax.com

Little Caesars

www.littlecaesars.com

Maid to Perfection

www.maidtoperfection.com

Maids, The

www.maids.com

McDonald’s

www.aboutmcdonalds.com

Miami Subs

www.miamisubs.com

Mint Condition

www.mintconditioninc.com

New York Pizzeria

www.nypizzeria.com

Papa John’s

www.papajohns.com

Pop-A-Lock

www.popalock.com

Pronto Insurance

www.prontofranchise.com

Re/Max

www.remax.com

Red Roof Inn

www.redroof.com

Service Brands (Molly Maid, Mr. Handyman)

www.servicebrands.com

ServiceMaster (ServiceMaster Clean, Merry Maids, Furniture Medic)

www.servicemaster.com

Starwood Hotels (Four Points, Sheraton, Westin)

www.starwoodhotels.com

Street Corner

www.streetcorner.com

Tutor Doctor

www.tutordoctor.com

United Franchise Group (Sign-A-Rama, EmbroidMe)

www.ufgcorp.com

Vanguard Claning Systems

www.vanguardcleaning.com

Wingstop

www.wingstop.com

WSI

www.wsiworld.com