Accelerator Program Focuses on Wealth Creation and Will Increase Inclusiveness Among Franchisees
The International Franchise Association has unveiled its new Franchise Ascension Initiative, which will prepare individuals from underrepresented groups and economically disadvantaged people to become franchisees. The overarching goal of the initiative is to narrow America’s wealth gap through a six-month program of education, mentorship, resources and other support. The program will launch late this year, with the first session continuing into early 2025, the IFA announced at its annual convention, which is ongoing and will end Tuesday in Phoenix.
The wealth gap is a problem cited by many U.S. politicians and policymakers. In October 2023, the Federal Reserve reported that the typical White family in the United States possessed six times more wealth than the typical Black family and five times more wealth than the typical Hispanic family.
Omar Simmons, on the founding committee for the Franchise Ascension Initiative, cited an even starker statistic in discussing the program at the IFA convention on Sunday, saying, “The average white family has seven to 10 times more wealth than the average black family.” Simmons, managing director of a private equity fund that owns 53 Planet Fitness Health Clubs, is an African American who graduated from Princeton University and Harvard Business School.
The Franchise Ascension Initiative offers a clear path toward wealth creation, according to the IFA, which states that franchise businesses create jobs at 2.3 times the rate of non-franchise businesses. IFA figures also show that Black-owned franchise firms report 2.2 times as much in sales compared to Black-owned independent businesses, on average.
Ascension Program Curriculum
The first five months of the Franchise Ascension Initiative program will consist of required self-paced online and experiential learning with assignments, case studies and mentorship. The coursework has an instructor, and curriculum will be geared toward the fundamentals of the franchise business model. Optional courses will give participants the opportunity for personal development and improvement of their business and leadership skills.
The final month of the program will be made up of live online learning and facilitated instructor learning, one-on-one mentorship meetings, experiential assignments, presentations by a series of expert speakers and more. This portion of the program will get participants ready to compete in a pitch contest for a specific franchise opportunity with a group of franchisees, suppliers and/or franchisor executives.
Beyond making an impact on the wealth gap, the Franchise Ascension Initiative is designed to broaden diversity within the franchisee candidate pipeline and inspire entrepreneurs to establish and grow franchise businesses. The applicant recruitment process also will expose individuals to the possibilities of franchise ownership and careers in franchising, according to the IFA.
Likely Participants
The IFA said the program will target five audiences:
- People seeking college degrees. These participants are considering franchise ownership as a career path. Graduate school students are particularly favored, but undergrads, community college and vocational school students are viable candidates, too.
- Partial or total business ownership by experienced managers. This audience is managers with a tenure of five or more years in managing franchise, retail or other types of businesses and would like to eventually have a 100% or fractional ownership stake.
- Conversion franchising. These potential participants are owners of one or two business units who want to fold those entities into a franchise system to take advantage of a franchisor’s support and resources.
- Corporate refugees. Individuals in this audience want to change careers and will explore franchising as an option.
- High-performing franchisees. These candidates may choose to enroll independently or may be chosen by franchisors who see them as potential multi-unit owners.
Simmons Seeks Contributions
In leading into a request for financial assistance in support of the initiative, Simmons shared his back story with convention attendees. In it, he emphasized the importance of opportunity and networking. “I grew up challenged, and my grandparents were the first generation Americans in my family who weren’t slaves. I was lucky because I was able to be an athlete in college, and eventually got into franchising.”
Simmons also said that networking, plus the generosity and kindness of others, figures heavily into his success. “I have always been blessed with door openers. If it had not been for people who gave scholarships, I would have gotten to where I am today.”
Then he gave his call to action: “I’m asking the audience here today to give back for all the opportunities you have gotten and to pay it forward and give someone the gift of an opportunity. We have already raised $2 million for the Franchise Ascension Initiative fund,” he said, but additional money will broaden the reach of the program and make it sustainable.
Founding Committee
In addition to Simmons and his wife, Raynya, the Founding Committee for the Franchise Ascension Initiative was made up of Ericka Garza, who sits on the board of directors of Workstream; Kathy Gosser, Ph.D., an assistant professor at the Yum! Center for Franchise Excellence at the University of Louisville; David Humphrey, CEO of Ignite Fitness Holdings; Robert Huntington, CEO of Metric Collective; Mike Isakson, operating partner of Mid Ocean Partners private equity firm; Earsa Jackson, lawyer with Clark Hill firm; Dan Monaghan, founder of Clear Summit Group private equity firm; Richard Snow, lending manager with Bremer Bank; Carolyn Thurston, CEO and founder of Wisdom Senior Care; Steve White, chief operating officer and president of PuroClean; Edith Wiseman, president of FRANdata.
