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The National Minority Franchising Initiative recently completed its fourth annual survey to determine the progress of minorities within the franchising community. The good news is that minorities continue to make exceptional progress in increasing their representation in this arena. The bad news is that there is still a disparity, though dwindling, between minority ownership (generally put at 15+%) and their representation within the population at large – approximately 28%. Progress is slower than most would wish, but clearly on the right track.
This progress is due to two primary factors: 1) the strong work ethic, willingness to play by the rules, entrepreneurial instincts, and mental toughness of minorities when times get tough (like today!) and 2) the significant marketing efforts implemented by franchisors to attract and support minorities within their systems. Franchisors clearly realize that their brands are not properly represented in underserved communities and are making significant efforts to close that financial gap.

The National Minority Franchising Initiative received over 450 responses to this year’s survey. The questionnaire asked franchisors to list the minority (African-American, Asian-American, Hispanic, South Indian, etc.) participation among their existing franchised and company-owned units, as well as the minority representation among senior management which is defined as management with an annual salary in excess of $60,000. The companies that scored the highest are listed below. These ten franchisors have clearly been exceptionally successful in their efforts to recruit minorities.
Each company has in excess of 1,000 operating units. In each case, over 33% of their franchisees are minorities. Most also have a significant number of minorities within their management ranks. Given the relatively low cost of entry, one might expect greater participation within the maintenance industry. The last four companies, however, are in the food-service and service industries, which generally have a very high cost of entry.

The adjacent list of 50 Top Franchises for Minorities is an excellent starting point in your search for an optimal franchise that meets your needs. The percentage of minority franchisees is not an overarching factor in selecting a franchise. To the extent that you are a minority, however, there is no question that these companies are clearly doing something right and that they actively support your inclusion within their systems.
The National Minority Franchising Initiative as various resources including books, FDDs, etc. that could be of use to you if you are considering pursuing a franchise. For access to these and for more detailed information on franchises actively seeking minority franchisees, please visit www.MinorityFranchising.com.

50 Top Franchise for Minorities
Selected by the National Minority Franchising Initiative – NMFI

They want a sense that their work contributes to a greater goal, a sense that they are valued by the company, a sense that their input on the company’s policies and directions has meaning and will be seriously considered by management.

But in order to have that, the tone has to be set at the top level. That’s why Rost —the founder, president and CEO of Fiesta Insurance Franchise Corp. — strives to get out among his employees at his company, which generated $36 million in 2010 sales under its brand name, Fiesta Auto Insurance.
Smart Business spoke with Rost about how a good set of ears and good set of walking shoes paves the way for an engaged, loyal work force.

How do you involve employees and franchisees in shaping the company’s future?

We are always chatting with our franchise owners to see if they have a different perspective, if they know of things that are working or not working. They might have some particular challenges or successes out there. We recently had three of our superstar franchise owners who were down here from northern California visiting with us. It was an opportunity to spend some time talking about their operations.

I can also think of some accounting challenges recently that came from our front-line clerical staff. With that, and discussing some of the potential solutions, we were able to create some software programming where the programming can be done more efficiently.

To implement something like this, having other people involved is key to a good working environment, whether it’s staff members or franchise members. If they feel there is not an opportunity to be heard in the organization, that is not going to help the success of the organization itself. In the leadership position, as the CEO or top manager, you have to spend a certain amount of time out in the field, making sure that you’re available to shake hands, chat with people and ask them for their input.

When you’re talking with your employees and franchisees, what do you want them to tell you?

Sometimes you’ll find in those situations, people will tell you about the good things, but you’ll need to ask them about the challenges they’re facing. You can talk about two things that are good things, but let’s also discuss the five things that are challenges. Without those discussions, you might not find out about that operational crisis that you’re not yet aware of or whatever it might be that they’re facing in their various capacities.

From there, the next step is to ask them about potential solutions for each one of those challenges. Most of the time, people that are dealing with whatever challenge exists have it in their mind how they would have dealt with the issue in the first place. That is how you begin to generate great ideas from the people on your staff who are dealing with those challenges on a daily basis.

What qualities does a truly engaged employee possess?

From a personality standpoint, it’s going to be someone who is very persistent, somebody who is not going to give up easily in the face of some challenging times. Nothing is perfect out there, so in order to be successful, you have to have that attitude of never giving up. So our franchise owners, if they come in, grab a hold of the concept in training, and go out and execute the plan we’ve laid out, they have an opportunity to be very successful. Every once in a while, we’ll have someone who goes out and tries to buy an orange and turn it into a banana, and it doesn’t work too well.

Ultimately, what do you see as the leader’s role in engaging employees?

As the leader, you have to have that vision to get people involved. You have to make sure everybody understands what the vision is and hold everybody accountable to stick with it. It’s something that is changing. It’s always zigzagging across as you’re headed in a certain direction. But you have to make sure everybody is staying on that path by motivating and inspiring people to achieve the goals of the organization.

How to reach: Fiesta Insurance Franchise Corp., (877) 905-3437 or www.fiestafranchise.com

*Full article can be found here: http://www.sbnonline.com/2011/10/how-john-rost-sets-the-stage-for-engagement-and-involvement-at-fiesta-insurance/?full=1

National Automotive and Tax Preparation Franchise Recognized Second Consecutive Year

HUNTINGTON BEACH, Calif. (August 12, 2011) – World Franchising Network (WFN) has once again named Fiesta Auto Insurance, the nation’s only insurance and tax preparation franchise, as one of its Top 25 Franchises for Hispanics for 2011. PODER Magazine, the successor to Hispanic Enterprise, published the results in its July 2011 issue.

“We are proud to be a part of the prestigious list for a second year in a row,” said John Rost, founder and CEO of Fiesta Auto Insurance. “This recognition is a testament to our talented franchisees and our commitment to growing with entrepreneurs who want to carry on the Fiesta Auto Insurance tradition of success in markets throughout the country. We look forward to continuing to achieve many more successful benchmarks for years to come.”

The WFN developed the list based on a rigorous analysis of several factors, including historical performance, brand identification, franchisee satisfaction, training, on-going support and financial stability. Another important determinant is the percentage of existing franchises that are Hispanic-owned, as well as the number of Hispanics in the franchisor’s top levels of management.

“We are extremely pleased to notice both the increase in the number of Hispanic-owned franchisees, as well as the increased Hispanic representation among the top management,” noted WFN Founder Rob Bond. “There is no question that the franchising community is increasingly aware of the economic power and underlying talents within the Latino community. Over time, Latinos will realize their full potential and the playing field will indeed be level. Hopefully, that day is not far off.”

The Top Franchises for Hispanics list was initially compiled by the National Minority Franchising Initiative (NMFI), a program launched by WFN in 2000 to level the playing field and meet the needs of a largely under-represented market. The WFN, which manages the www.MinorityFranchising.com website, the Minority Franchise Guide publication, and franchise-related events throughout the country, represents an effective and cost-efficient tool for franchisors to increase minority representation within their systems.

With an initial franchise fee of $10,000 and total suggested capital ranging between $30,000 and $50,000, the Fiesta Auto Insurance franchise opportunity provides investors with a low-cost, low-overhead, franchise investment. The company provides the necessary support tools for its franchisees, including marketing, ongoing training and financial reporting. The brand’s colorful logo, featuring its animated bird mascot, has helped establish widespread consumer awareness.

About Fiesta Auto Insurance
Fiesta Auto Insurance is the nation’s only franchise system to combine insurance and tax preparation under one roof, providing a one-stop shop for the budget-minded consumer. Beyond auto insurance, Fiesta offers insurance services for watercrafts, motorcycles, homeowners, rentals, condos, apartments, tenant occupied property, commercial auto, commercial property, commercial general liability, Mexico insurance and special event coverage. On the tax side they offer federal and state personal income tax filings, business tax returns, electronic filing and bank products.Fiesta also provides motor vehicle registration services, travel services, wireless services and instant wire money transfers as well as accounting and bookkeeping services. For more information on Fiesta Auto Insurance, please visit: www.fiestainsurance.com, www.fiestatax.com or for franchising information: www.fiestafranchise.com.