First, let’s get a feeling of the size of the overall expansion in women-owned businesses, the numbers are exciting and stunning in some cases. According to Fundera, 12.3 Million U.S. businesses are owned by women entrepreneurs and generate in excess of $1.8 Trillion in revenues. In 2020, the women started 1,821 new businesses every single day!
What’s even more fantastic is that of the new businesses started, 64% of them were owned by women of colour in 2020 showing the growth not only in female business ownership but also in minority-owned business ownership. In the ten years between 1997 and 2007, women-owned businesses created over 500,000 new jobs and opportunities for employment.
With all this growth and expansion in the overall business market for women, the growth in women-owned franchises and franchise brands should be no surprise.
The undeniable growth and expansion in women-owned businesses around the United States and the world is underway and some of the statistics both in franchising and in small business ownership.
This rising tide for female business ownership is a very good thing for our overall economy as this demographic has historically been a much lower percentage of the business market which means growth and opportunity for women and also growth for the entire economy with new ideas, new perspective and new business initiatives from female-owned firms.
Next, let’s dig into the franchise industry specifically and the impact women have had on the franchise market. Women have created new brands, developed franchises and defined entirely new market segments while paving the way for entire markets through the franchise business model.
Let’s point to a few specific brands and businesses which are led by strong, innovative women business leaders. Some of the great new women-owned franchise brands include The Bundt Shoppe, which was founded by Ms. Amina Ahmed, and is a unique and high-margin retail baked goods franchise brand based in the Colorado market.
The business model is beginning to grow quickly in Colorado and surrounding markets. Kika Stretch is a wonderful example of women-owned franchise systems doing exceptionally well in part because of the female perspective and creative energy supplied by Kika DuBose Wise.
This brand has opened almost thirty stretch studios from its New Jersey headquarters to sunny California markets and has defined an entirely new market segment under her leadership. Ms. Taria Ramos, the founder of Inspired Cravings, a fantastic Vegan Bakery model is beginning to develop the franchise system from the Virginia Headquarters to throughout the Mid-Atlantic markets and throughout the Southeastern U.S.
Ms. Ramos saw a need and a significant market segment that needed representation in a vegan baked goods brand that customers could trust and enjoy, so she took the first steps and launched Inspired Cravings.
Many of the franchise industry’s biggest brands and most established franchise systems have been developed by women-owned franchisors, but the increasing trend of franchises being owned by women is also undeniable and proving to be one of the richest opportunities for growing franchise brands.
According to the Wall Street Journal, by 2019, women owned over 265,000 franchise businesses in the United States which comprises over 35 per cent of all franchises, this is an increase of 24 per cent from a decade prior. Stunning growth and a market segment that has pushed many franchise brands to shift their marketing and recruitment efforts to not only include women but to focus on targeting women franchise owners.
This transition has also helped support the growth of many traditionally women-oriented businesses now entering the franchise market and seeing opportunities to scale their brand through franchising.
The Meta Frequency Franchise, a healing and wellness franchise founded by Lysa Bozel has created a business model selling crystals and personal development services that were launched in the last year in the Tampa, Florida market. Fetewell Events, an event venue services franchise has been developed by Ms. Kate Ansari, an influential and fantastically creative entrepreneur in the Washington D.C. area markets.
The model is beginning to franchise throughout the region and expand into the Mid-Atlantic markets. KemSkin Beauty is a beauty services brand founded by Ms. Natiya Hood which offers a wide range of skincare, waxing and beauty services it was brought to market recently and offers a fantastic beauty services franchise.
Harlem Zen, a beauty services brand focused on women of colour was franchised in 2019 by Ms. Angela McTair in Atlanta. The brand was innovative, the first of its kind to offer services specifically tailored to women in this demographic and has been enormously well received in a very short time period.
All of these franchise systems and more are part of this fantastic growth in female-owned franchise growth. Today, more than ever in history, women are a force in the business community and the impact they have is growing every day. If you are franchising your business, you cannot ignore the opportunity to make your franchise appealing and welcoming to women-owned franchise brands.
FMS is a team of expert franchise consulting professionals based in Canada that provides solutions for franchise development, franchise consultation, and expansion of businesses globally.