Franchising: Path to Success for Immigrant Entrepreneurs

Franchising is ideal for immigrant entrepreneurs. If you are willing to do a little research and work hard, you can own your own business and become successful.

Every year thousands of new immigrants take a shortcut to success in America— franchising. Why? With franchising you don’t need connections to get started. You don’t have to know the legal system, the intricacies of American business practices or even knowledge of an industry. If you are willing to do a little research, and work hard, you can own your own business and become successful. In short, it’s ideal for immigrant entrepreneurs.

This is why we attended the International Franchise Exposition (IFE) at the Javits Center in New York City this last month (June 20-22). Apart from the fact that it’s an international city, a compelling reason to hold the IFE in New York is that it’s a city of immigrants, many striving to realize the American Dream of owning their own business. Some 40% of New Yorkers are immigrants, and one half of all small businesses in the city are owned by immigrant entrepreneurs (immpreneurs). Furthermore, 27.1% of new businesses were started by immigrants in 2012.

“How to Be In Business for Yourself, Not by Yourself” Visit the IFA Franchise Opportuniy Site!

So, it was not surprising to see a decidedly international crowd surrounding the exhibits, including the Immpreneur booth. We talked to immigrant entrepreneurs from the Caribbean, Africa, Central and South America, the Middle East, the United Kingdom, and all parts of Asia, who were all there looking for the business opportunity that was just right for them— one with the right level of capital investment, flexible work schedules, and in a sector that they found personally compelling.

IFE Booth

And there was plenty for them to see. More than four hundred different franchisers were there, exhibiting a wide variety of franchising categories such as theme restaurants and retail foods, high-tech equipment, cosmetics and beauty, business services, auto services, hospitality, childhood education, and telecommunications to name a few.

“If you want to be a franchisee, make sure that you do your homework, and that you are entering a field that you are passionate about.”

Good Advice for Franchisees

Esther Oaknin, Manager of U.S. Expansion for d-hairemoval Concept, summed up the experience with some advice to prospective franchisees. “If you want to be a franchisee, make sure that you do your homework, and that you are entering a field that you are passionate about,” she said. “Also, make sure it is something that you can envision yourself putting hours, enthusiasm and energy into.”

Karen Baney of Checkers, a quick service restaurant, has taught her some important lessons: the importance of good customers service, delivering a quality product, and community involvement.  And, how well her team follows franchise procedures. see video below.

America Corrales-Bortin, a native of Mexico, and the namesake and co-founder of America’s Taco Shop agreed wholeheartedly. “The biggest thing is that you must have a passion for what you do,” she said, and added: “You must want to be the best.” -America Corrales-Bortin (left) working at IFE

Franchising and Culture

Ms. Oaknin, who is originally from Spain, also believes that owning a franchise can be an ideal situation for an immigrant entrepreneur. “Sometimes it is very difficult to fit into the corporate world. The politics and cultural dynamics may be very difficult for someone who did not grow up in this country. But you don’t really need to fit in when you’re running your own business.”

Sometimes it’s very difficult to fit into the corporate world. But you don’t really need to fit in when you’re running your own business.

Usually, your franchisor has already made the normal mistakes a small business makes getting started, so with their direction, you’ll be able to avoid experiencing the same problems. In short, with franchising you can have the best of both worlds: independence and support.

Growing Wealth Through Franchising

With Oaknin and Corrales-Bortin, we discovered an exciting new phenomenon, immigrant entrepreneurs growing their wealth by franchising their existing businesses. They were far from alone in taking this new direction.

We also met a couple from Province, France that moved to the United States in 2008. Rosalie and Gilbert Guillem opened a pastry business in Sarasota Florida, specializing in French macarons. Le Macaron French Pastries was a big enough success so they could open branches for their children who followed them to the United States, and now the Guillems are franchising their unique business, only a few short years after coming to America.

Franchising has developed into a huge sector of the American economy. At 8 million jobs overall, it rivals the financial services sector in size, and generates $2.1 trillion in economic output

The Future of Franchising

Franchising has developed into a huge sector of the American economy. At 8 million jobs overall, it rivals the financial services sector in size, and generates $2.1 trillion in economic output. And in the past year, according to ADP, the payroll company who reports on the industry, franchising has grown twice as fast as the rest of the economy, created approximately 10% of the new jobs in America, roughly 150,000 in total.

And the future looks just as strong. Both ADP and the International Franchise Association agree that franchising is poised to go from strength to strength, forecasting a 2% growth rate for franchising in the coming year, while the rest of the economy is forecast to grow at 1.5%.

As we have seen, franchising is not just a way for newcomers to get started in America, it’s a method by which immigrant entrepreneurs from many business sectors multiply their wealth and increase their share of the American Dream.

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