Diversity on the Rise: Latest statistics show higher levels of growth in diversity and inclusion among franchise businesses.

Author:Jackson, Earsa

The success of any business is often measured by how efficiently it responds to change. The shifting demographics in the United States present a unique opportunity for franchise brands to expand into once under-represented communities and reach untapped talent. By 2050, the Hispanic population in the United States is expected to make up nearly 28 percent of the population. During this same time period, the African-American population is expected to make up just less than 15 percent of the population. Between 2020 and 2050, the non-Hispanic white population is expected to drop from approximately 60 percent to just less than 47 percent. This rise in minority demographics should be considered an opportunity to expand a franchise into new, profitable territories.


IFA's mission is to protect, enhance and promote franchising.

There are more than 733,000 franchise establishments that support nearly 7.6 million direct jobs, $674.3 billion of economic output for the U.S. economy and 2.5 percent of the Gross Domestic Product (GDP).

IFA members include franchise companies in more than 300 different business format categories, individual franchisees and companies that support the industry in marketing, law, technology and business development.


Diversity and inclusion have the power to accelerate the mission of franchising. IFA's Diversity Institute was created to capitalize on this power and outline best practices for its member companies, both in external business development and internal industry optics. The Diversity Institute serves as a key catalyst for promoting and fostering diversity and inclusion within franchisors, franchisees, suppliers and employees, and realizes that the rapid pace of demographic changes and population growth create both a unique opportunity and challenge for business expansion.

The Diversity Institute houses the IFA Foundation's groundbreaking diversity and inclusion services--education, research, scholarships and access to additional national organizations. Through these, the Institute provides franchise ownership training to under-represented populations and cultivates a convenient place for minorities to explore franchise opportunities with companies actively recruiting multicultural franchisees.


On March 9, 2018, the Diversity Institute introduced a new study commissioned by the IFA Foundation, "Franchised Business Ownership by Minority and Gender Groups." This...

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