Franchising

How to create wealth in Black community through franchise ownership

Representation at the ownership and senior management levels helps Black employees feel seen, heard and appreciated in ways that can and will positively impact productivity.

Photo by Adobe Stock.

February 27, 2023 by Tarji Carter — President, The Franchise Player

Close your eyes and reminisce on your childhood. What stands out? I think about trips to McDonald's with my favorite guy when I do it. Driving to Mickey Ds with my dad is one of my fondest memories. I used to love getting a Happy Meal. I would walk up to the counter and place my order. He would always add a coffee for himself. He would only order coffee, but he always ate my fries. While I enjoyed my cheeseburger, his fingers managed to mangle my fries, and he always told me how the French fries were the best part of the meal. He would sip his coffee, black with one sugar, and puff on his Tarynton 100 cigarette. I know I've just dated myself, but stay focused. This was our quality time, at least once a month, and I lived for it.

Fast forward to the year 2008, Focus Brands hired me as the franchise manager for Carvel Ice Cream. Until then, I had never uttered the word franchise, let alone know I could own one. It immediately dawned on me that if I was unaware of franchise ownership as a path to generational wealth, those in my community were probably similarly unconscious.

Although many in the Black community work for and even manage franchise businesses, ownership seems to elude them due to many factors. Some are personal, while others stem from a lack of knowledge and know-how. One reason is simply the politics involved. Whatever the reason, it can be a massive miss for brands not fully committed to creating environments that reflect the communities they serve.

The brands that get it, get it. And by "it," I mean they see the results of diversified creativity, increased productivity, reduced turnover and connectedness to a broader range of guests. If that weren't enough, which it should be, increased revenues are the collective result of the above. According to Forbes, "statistics show that businesses that make it a point to encourage ethnic diversity are 35% likely to increase revenue." So, not only are inclusion and diversity morally and ethically the right thing to do for our country and the overall health of humanity, but the business argument is also a no-brainer. Money makes the world go round. Right?

The great resignation that has led to a labor shortage is primarily due to workers finding new and inventive ways to support themselves financially. The pandemic allowed front-line workers time to evaluate and reevaluate their lives in ways they may not have ever considered before. Many complained about being overworked, underpaid and misunderstood by management. Often, misunderstandings can result from cultural differences, which creates friction.

Representation at the ownership and senior management levels helps Black employees feel seen, heard and appreciated in ways that can and will positively impact productivity. Productivity increases revenue. If you've never been the minority at work, you may be unable to relate; however, if you've had this unfortunate experience, this makes perfect sense to you. This is not to say that individuals with different ethnic backgrounds cannot communicate effectively and respectfully. I'm hoping to drive home the significance of creating balanced environments that foster inclusivity and belonging, ultimately driving a positive impact on the bottom line.

There is a vast pool of multi-unit managers who happen to be Black and are incredible at what they do. They're talented, hard-working, and educated; insert any adjective to describe your ideal franchisee candidate. They meet the criteria and are chomping at the bit for an opportunity to own and operate what could very well be one of the brand's highest-performing stores. I suggest that every franchise brand take inventory of its talent pool and find a way to recognize, reward and retain its star performers through ownership opportunities before I help your competitor beat you to the punch.

About Tarji Carter

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