IFA Launch New Franchise Initiative Aimed At Narrowing The Wealth Gap
Franchising has long been recognised as a great business model offering a pathway to entrepreneurship. But whilst it can provide an accessible route to business ownership, the franchise industry continues to push against low levels of awareness and education, myths and misconceptions, lack of representation of diverse groups, and obstacles around access to capital and funding. Now the International Franchise Association (IFA) aims to further break down barriers to franchise ownership for underrepresented groups and economically disadvantaged communities with the launch of its new Franchise Ascension Initiative.
Officially opened for applications on May 1st 2024, the Franchise Ascension Initiative is described as an "immersive 6 month program" with the aim of preparing individuals for a career in franchise business ownership through education, mentorship, resources and financial support. The goal of the initiative is to narrow America's wealth gap by catalyzing diversity in franchise ownership.
The program is the brainchild of Omar Simmons and his wife Raynya Simmons, who provided the initial financial investment to launch the initiative. They were inspired to do so after hearing Shaquille O'Neal, former professional basketball player and multiple franchise business owner, speaking about the power of generosity at the IFA annual conference in 2022. Raynya looked around the room and recognised that they had an opportunity to increase diversity in franchising. Omar Simmons is an IFA board member and is manging director of Exaltare Capital Partners, a private equity firm with expertise in multi unit and franchise businesses. Current investments include Urban Air Adventure Parks and the firm previously grew Planet Fitness franchise partner ECP-PF from 15 club locations to over 100 sites.
“As a descendant of slaves who grew up in subsidized housing, I am living proof of the transformative power of access to opportunity, networks, and dedication to continuous learning and hard work,” said Omar Simmons as the IFA opened the doors to applications. “Franchising has been at the center of my journey and can provide a unique path to financial freedom for others. Now it is time to pay it forward so that even more people can have access to the same opportunities I had. Raynya and I are honored to help launch this important and impactful initiative and look forward to the Franchise Ascension Initiative (FAI) accelerating the journeys of countless future entrepreneurs and sparking increased wealth creation in underrepresented communities.”
Speaking about the aim of the initiative, Matt Haller, IFA President and CEO saidd “Franchising is one of the greatest pathways to business ownership and creating generational wealth. This program ensures that access to opportunity is available to everyone, regardless of background. What better way to bridge the wealth gap than through opening more doors for aspiring business owners from all walks of life. The Franchise Ascension Initiative will further help franchising changes lives and strengthen local communities.”
Data from Oxford Economics supports this view. The economic advisory firm's 2021 report on the Value of Franchising concluded that franchising offers less represented groups a chance at entrepreneurship and increases their chances of business success. Statistics showed that Black-owned franchises were earning 2.2 times more than Black-owned independent businesses, Hispanic-owned franchises earning 1.6 times more than Hispanic-owned independent businesses, and Asian-owned franchises earning 1.4 times more than Asian-owned independent businesses.
The Franchise Ascension Initiative is open to applicants until June 15 2024 and successful participants will begin what is hoped to be a successful journey in the world of franchise ownership in August.
