The pandemic has become something of a comprehensive reckoning for employers and employees alike. Never before in history has there been such introspection for both sides of the workplace equation. For employees, it’s given rise to the “Great Resignation”, which the U.S. Bureau of Labor Statistics currently tallies at 39 million and counting. For employers desperate to retain their talent pool at every level, it’s led to conditions and terms we couldn’t have imagined just three years ago. Remote working, better pay, more time off, and leadership that’s beginning to openly embrace the value of their workforce.
In a best-case scenario, it’s hoped that this introspection from both sides will lead to a more equitable and just business climate—for everyone. And according to a recent International Franchise Association report, “The Value of Franchising,” it appears to be happening in our industry. Oxford Economics, a leader in global forecasting and quantitative analysis, put together a first-of-its-kind assessment on the value of the franchising as it pertains to owners, employees, and the local communities which they serve. The organization surveyed more than 4,000 franchise owners and here are the most powerful takeaways:
A Summary of the Findings
The report’s executive summary found that franchise businesses are much more diverse in ownership, industry, and level of commitment to their community than non-franchised businesses. Especially among people of color, women, and U.S. veterans. The report also states that franchises offer and provide better rates of pay and benefits than their counterparts.
Wages and Benefits
Franchise businesses pay a two-to-three and a half percent higher wage than non-franchise companies. Over 65% of employees who work for franchise businesses are offered health insurance and 75% of these employees are also eligible for vacation, sick days, and holidays.
A Preferred Path to Business Ownership
One in three survey respondents stated that they’d be uninterested in owning a business unless it was a franchised opportunity. First-time franchise owners and women stated the same, but at a higher rate overall. Without franchising in the mix of U.S. businesses, there would be a gap consisting of 60,000 companies, over 220,000 establishments, and also the almost two million jobs that support them.
A Big Assist
Franchises offer minorities and women a better chance and more opportunity to own a business of their own. A quarter of all franchises are owned by people of color and black-owned franchises are more than twice as common in the industry than in corporate America. For the underrepresented, franchising offers a big assist for those with an entrepreneurial mindset.
The report concludes by giving a glowing assessment of franchises on the community impact they produce. Because the majority of franchise businesses recruit, hire, train, and promote local employees, the economic impact and stimulus remains well within the community borders. This same sentiment also extends to the local vendors and suppliers who support franchise businesses.
Franchising can help overcome the typical business ownership barriers and give you a pathway to establishing an entrepreneurial future. If you’d like to discuss how, FranNet of DFW & Oklahoma would be more than happy to introduce you to the world of possibilities that await you with franchise ownership. And it won’t cost you a dime, as our consultations are always no-cost and no-obligation.
Working together, we can locate a franchise concept that’s a perfect match just for you—one that aligns with your lifestyle and income goals.
2022 has only just begun. Let’s see what this year has in store for you.