Twenty-seven million Americans are starting or running new businesses. Entrepreneurs of color, and black women, in particular, are starting new small businesses at rates outpacing other groups. Yet, many people are afraid to step out of their comfort zone to become their own boss—which is why many look to franchising. Franchising provides an opportunity to own a business in any field—whether you have experience in that field or not—with an established support system already in place. However, franchising is not something to jump into, there are important questions to ask before buying a franchise
For black Americans, franchising is rapidly becoming a way to achieve business ownership. A study from the U.S. Census Bureau’s Survey of Business Owners revealed astounding growth in black franchise ownership. That data showed 40,588 businesses were operated as franchises for all or part of their businesses by blacks in 2012, up from just 15,087 as franchises run by blacks in 2007.
The new data is significant because it shows how franchising ownership for blacks, minorities, and women has evolved and dramatically changed over the years. For years, African Americans have operated and continue to run restaurant and cleaning brands.
Yet in recent years, blacks have become owners in a broad spectrum of franchises. They include Always Best Care Senior Services, FastSigns, Handyman Matters, Jazzercise, PostNet, and Meineke Car Care Center, to name just a few.
For the aspirational franchise owner, here are the top questions you must ask a franchisor before deciding if the franchise opportunity is ideal for you:
10 Most Important Questions to Ask Before Buying a Franchise
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—Jeffrey McKinney contributed to this report.
Black Enterprise Contributors Network