50 Top Franchises for Minorities (2012)

USA Today's Top 50 Franchises for Minorities in 2012

Friday, October 12, 2012

By Rob Bond and Annie Barbarika

This is the sixth annual survey conducted by the National Minority Franchising Initiative. As in the past, our sole intent is to acknowledge those franchisors who best demonstrate their commitment to the recruitment, inclusion and on-going support of minorities through action. Our sense is that prospective minority franchisees want to be part of a system where their ethnic or racial group is already well represented. This allows them to gain insights before becoming a franchisee, and, equally importantly, access a strong peer group to provide continuing support and encouragement.

We estimate by extrapolating from a sample of hundreds of Franchisors that are active in North America that roughly 16% of all franchises are owned by minorities. This is a vast improvement from the 8-10% participation only 10 years ago. Although this number still falls short of the 28% of minorities in the overall population, we continue to be impressed with the growing number of minorities within the ranks of the franchising community.

To qualify for the "Top 50" list, several hundred franchisors submitted information on minority participation (African- American, Asian-American, Hispanic, South Asian, etc.) among their existing franchised and company-owned units, as well as their minority representation among senior management (defined as management with an annual salary over $60,000). The highest-scoring companies are listed in the attached "Top 50" listing.

Among those companies that responded, a most welcome trend has emerged. An increasing number of franchisors have a minority participation rate of over 50% among their franchisees and company-owned store managers. Nineteen companies, each with high percentage minority participation, are noted below, along with their industry group. Two industries clearly stand out - the maintenance industry and the insurance industry. Three of the companies (UCMAS, OXXO Cleaners and Churromania) have less than 43 operating units and so were not included in the larger list, but have outstanding minority representation.

Company Total Units Minority Units % Minority Industry
Estrella Insurance 51 51 100% Insurance
UCMAS 42 42 100% Education
ATAX Accounting 46 45 98% Tax/Accounting
Flame Broiler 114 111 97% Food
OXXO Cleaners 34 32 94% Cleaners
Churromania 13 12 92% Food
Fiesta Insurance 84 76 90% Insurance
Anago Cleaning 2,389 2,126 89% Maintenance
Pronto Insurance 119 105 88% Insurance
Jan-Pro Cleaning 10,290 9,089 88% Maintenance
Vanguard Cleaning 2,713 2,395 88% Maintenance
Mint Condition 234 204 87% Maintenance
Coverall Cleaning 9,137 7,862 86% Maintenance
Church's Chicken 1,211 956 79% Food
Jack in the Box 2,252 1,702 76% Food
New York Pizzeria 56 38 68% Food
7-Eleven 6,916 4,544 66% Food/Convenience
Juice It Up! 86 57 66% Food
Charley's Grilled Subs 466 294 63% Food

It is worth noting that five companies (Churromania, Flame Broiler, Estrella Insurance, OXXO Cleaners and UCMAS) have 100% minority management. While the above list is by no means the definitive for the selection of an optimal franchise system, it is an excellent starting point for a review of the industry.

The National Minority Franchising Initiative has various resources, including books, FDDs, links, etc. that may be useful if you are considering the purchase of a franchise. For access to more detailed information on franchises actively seeking minority franchisees, please visit MinorityFranchising.com.

50 Top Franchises for Minorities

Selected by National Minority Franchising Initiative - NMFI

Company Website
360clean 360clean.com
7-Eleven 7-11.com
Always Best Care Senior Services abc-seniors.com
Anago Cleaning Systems anagousa.com
ATAX Accounting/Financial Services atax.com
Bricks 4 Kidz bricks4kidz.com
Burger King whopper.com
Charley's Grilled Subs charleys.com
Chem-Dry Carpet & Upholstery Cleaning chemdry.com
Choice Hotels (Clarion, Comfort Inn, Quality Inn, EconoLodge) choicehotels.com
Church's Chicken churchs.com
CleanNet USA cleannetusa.com
Coverall Health-Based Cleaning System coverall.com
Cruise Planners cruiseplanners.com
CruiseOne cruiseonefranchise.com
Denny's dennys.com
Doc Popcorn docpopcorn.com
Estrella Insurance estrellainsurance.com
Fiesta Insurance fiestainsurance.com
Flame Broiler flamebroilerusa.com
Franchise Source Brands (Entrepreneur's Source, AdviCoach) franchisesource.com
Honest-1 Auto Care honest-1.com
i9 Sports i9sports.com
Jack in the Box jackinthebox.com
Jan-Pro Cleaning Systems jan-pro.com
Juice It Up! juiceitup.com
Kahala Brands (Blimpie, Cold Stone, Great Steak, TacoTime) kahalamgmt.com
Kiddie Academy kiddieacademy.com
Liberty Tax libtax.com
Little Caesars littlecaesars.com
Maid to Perfection maidtoperfection.com
Maids, The maids.com
McDonald's aboutmcdonalds.com
Miami Subs miamisubs.com
Mint Condition mintconditioninc.com
New York Pizzeria nypizzeria.com
Papa John's papajohns.com
Pop-A-Lock popalock.com
Pronto Insurance prontofranchise.com
Re/Max remax.com
Red Roof Inn redroof.com
Service Brands (Molly Maid, Mr. Handyman) servicebrands.com
ServiceMaster (ServiceMaster Clean, Merry Maids, Furniture Medic) servicemaster.com
Starwood Hotels (Four Points, Sheraton, Westin) starwoodhotels.com
Street Corner streetcorner.com
Tutor Doctor tutordoctor.com
United Franchise Group (Sign-A-Rama, EmbroidMe) ufgcorp.com
Vanguard Cleaning Systems vanguardcleaning.com
Wingstop wingstop.com
WSI wsiworld.com