Why aren’t more women getting into franchising? Of the more than 320,000 franchise units in the U.S., about 10% are owned solely by women, while another 20% are owned by male-female partners, according to a 1997 study by Women in Franchising Inc. (WIF), the latest data available.A lack of access to capital is the primary reason why more women aren’t purchasing franchises. One sign is that when women do buy franchises, they often choose less-expensive concepts that can be operated out of the home.
“The disconnect is with the bricks-and-mortars opportunities, such as McDonald’s or 7-Eleven,” says Erin Fuller, executive director of the National Association of Women Business Owners in Washington, D.C. The financing barrier is one that faces all women in business, she adds.
With women opening businesses at twice the rate of all other businesses, Ms. Fuller says she would expect the same would hold true for franchising. The fact that new franchisees don’t have to do everything from scratch — franchisees pay to use a franchise company’s brand and turnkey operating system — might help women grow these businesses faster than those they start on their own. But because franchising requires an upfront investment, bootstrapping a launch, as many women entrepreneurs do, isn’t an option.
via Kirsten Osolind.
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