Mayors’ program lends support to franchises
The U.S. Conference of Mayors has formed a Franchising and Small Business in Cities Task Force to explore how franchising can help create jobs. The task force will work with franchisees and other small business owners — a large number of which are women and minorities — to discover what impedes them from opening or expanding in their cities and within certain neighborhoods.
According to the Washington-based International Franchising Association (IFA), franchises are a growing business model, which employ more than 21 million people and contribute more than $2.3 trillion in economic output in the United States each year. Franchises provide a variety of services, including fast food, lodging and auto repair. “We sometimes take franchises for granted,” says Trenton, N.J., Mayor Doug Palmer, chairman of the task force. “We see McDonald’s and think, ‘This is Ray Kroc’s business,’ but it is a small business that is locally owned and employs local people.”
Cincinnati Mayor Mark Mallory is trying to expand opportunities for franchises and encourage business ownership in his city through quarterly workshops. In 2007, Cincinnati formed Shop 52, a partnership between IFA and the city’s 52 neighborhoods to help residents — particularly minorities, women and veterans — learn the legal and technical aspects of running a business, personal and business finances, and how other small business owners have been successful. “We make it clear you cannot expect to go to a seminar and open a business next month,” Mallory says. “This is not a quick fix. Our goal is to make sure people are successful, not in business for a year or two and gone.”
The USCM task force, in conjunction with franchise business leaders, will strive to bring needed businesses to underserved areas, and help residents start and flourish in their own businesses. “It is a tremendous opportunity to create more opportunities as the recovery happens,” Palmer says.
Liz Boardman is a Wakefield, R.I.-based freelance writer.
Related Stories
2007
National employment rate: 150,000,000
Franchise employment rate: 9,805,000
2008
National employment rate: 147,800,000
Franchise employment rate: 9,785,000
2009
(forecast)
National employment rate: 145,000,000
Franchise employment rate: 9,578,000