12. Why Are More Women Choosing Franchising?

Taylor McCarley: 00:09
Welcome to FranCast, the podcast from United Franchise Group, where we explore the stories, strategies, and people behind some of the world’s most successful franchise brands. I’m your host, Taylor McCarley. In 2022, United Franchise Group created National Women in Franchising Appreciation Day to recognize the women who own, lead, and grow franchise businesses. And since then, women have become a much bigger part of franchise ownership, and more of them are stepping into leadership roles across the industry. So what’s driving that growth and what does it mean for someone thinking about owning a franchise? Today we’re talking with Christina Parsons, Chief Marketing Officer for United Franchise Group about women in franchising, why the franchise model appeals to so many first-time business owners, the role mentorship plays, and where the industry is headed next. Thanks for joining us today, Christina.

Christina Parsons: 01:03
Thanks for having me. So glad I could uh represent women in franchising today. Great opportunity. Amazing.

Taylor McCarley: 01:10
Awesome. Well, well, the first question we got here is simple. What is Women in Franchising Appreciation Day and why did United Franchise Group create it?

Christina Parsons: 01:18
Yeah, so really Women in Franchising Day was created by United Franchise Group really to recognize women and their contributions to the industry. And obviously that spans not only our franchise owners, but people within our corporate marketing teams and operations teams and really throughout a United Franchise Group. So our employees, just entrepreneurs in general. But the day is also about looking forward and looking at the contributions that women are making and why that’s becoming increasingly more important and a significant part of our owners and women at United Franchise Group. So it’s great.

Taylor McCarley: 02:01
It is great. So we’ve heard that women now account for roughly 30% of all franchise owners. So what what is significant about that number and what what is driving that growth?

Christina Parsons: 02:11
Yeah, I mean, I think it’s significant because it represents a major change in the composition of franchise ownership. So if we look at that Guidant Financial 2024 data and that 30% number, um, that’s up from roughly 20.5% of female ownership that came from an IFA /PWC survey. So when you look at that and you look at the longer-term trend around women in franchising, that’s a substantial increase in women’s participation as a total share of ownership, which is really, really exciting to see.

Taylor McCarley: 02:44
It is exciting. And and what do you think, uh, why is franchising becoming increasingly attractive to women entrepreneurs?

Christina Parsons: 02:51
I mean, because it’s super cool, but above and beyond that, I think one of the most important factors is the structure of the franchise model. I think, you know, starting a business from scratch um can mean figuring out a lot on your own from how do I want to establish my brand and my branding, the business model, my marketing strategies, my operating procedures, technology, right? And you’re figuring that all out on your own. But I think franchising really provides that established framework that women can work within, um, and that’s training, support, proven operating model. Obviously, that doesn’t eliminate the challenges that come with operating a business, but it does give you uh guardrails and a plan to follow. And women are really, really good at that. Um, you give us the game plan, we’re gonna run it. Um, so I think that like even within that same guidance study that we were just talking about within the 30%, um, women are 17% more likely to be represented in franchising than they are with the broader kind of small business landscape. And I think that says a lot, right? Like we’re giving women that structure, um, follow that game plan, and they can be successful in entrepreneurship with all that risk, with all without all of that risk being 100% on them.

Taylor McCarley: 04:04
Yeah, no, absolutely. And and I want to go back to that stat that you brought up because you know, if it used to be 20 and a half percent of of women entrepreneurs in the franchising space and and now it’s it’s at 30 percent today, what does that tell us about where uh the industry and franchising is headed?

Christina Parsons: 04:20
Yeah, it’s really exciting because it tells us what women um have become much more significant part of franchise ownership. Um and it’s also one of the things to kind of distinguish between that study. So when you go from 20.5% to 30 percent, that’s an increase of nine and a half percentage points, right? Or roughly a 46% increase in the total share of women in terms of their participation in franchise ownership. And I think that as women are moving away from you know being a small segment to a much larger segment of the ownership universe, um, they become a driving force within the industry. And I think that’s uh really important.

Taylor McCarley: 05:01
Yeah, no, definitely. And and and what does the data tell us about uh women choosing to you know start a franchise versus maybe buying an existing business?

Christina Parsons: 05:10
Yeah, so that’s where the data kind of gets really interesting because that same guidance study basically told us that 39% of women business owners surveyed have um established new franchise locations, while another 9% have invested in existing franchise locations. Um it really tells us that isn’t something that women are simply just um turning to after owning an independent business. This is really for a lot of women uh their pathway into entrepreneurship more broadly.

Taylor McCarley: 05:43
Uh so would you say that franchising is becoming a pathway into entrepreneurship and business ownership for people who have never owned a business before?

Christina Parsons: 05:51
Yeah, absolutely. Um, for both women and men, the IFA data supports that. It says about 64% of franchisees are first-time business owners when they start. Um, but I think that’s why uh franchising in terms of the model itself is so interesting to study, um, especially when we’re talking about women as entrepreneurs, because you don’t necessarily need to have to come from a traditional entrepreneurial background to become a business owner, right? That’s not the only path that you can pursue. Um, you know, and the franchise model can provide a lot of things that we talked about, like the training, the systems, the resources. So it can really help somebody who’s maybe on the fence about business ownership, not really sure, um, transition into an ownership uh position uh and get the support that they that they need.

Taylor McCarley: 06:40
Yeah, 100%. And and what do what do women bring to franchising that strengthens the industry?

Christina Parsons: 06:45
I mean, so many things. But I think the most important thing is diversity of perspectives, right? Like if you look at the customers that, you know, certain um franchise models are serving, um, the employee perspectives, right? These communities are diverse. So having franchise owners and leaders uh in the franchising space with different backgrounds and experiences are gonna bring new perspectives. And I think that that’s gonna impact how businesses are marketed, operated, and how we’re growing franchise brands and looking at supporting our owners across the board. Um, but I also don’t want to put like women in a box, you know, and every woman say that every woman leads the same way. Um, but I think the real, the real benefit comes down to just making sure that women are also represented throughout leadership positions so that we do get that diversity of perspective.

Taylor McCarley: 07:42
Yeah, definitely. And and there obviously are a lot of different leadership styles, but we have seen more and more women moving into leadership roles within franchising. So what does that mean for the industry? Why is that so important?

Christina Parsons: 07:53
Yeah, I mean, ownership is a part of the story, right? And I know we’ve talked a lot about like women um, you know, running more of the businesses themselves, but I think leadership is another because they’re, you know, we’re not only becoming franchise owners, but we’re also becoming very visible in franchise or leadership positions, um, and that it impacts how we operate, uh, market, sell. Um, and those are critical areas of the of the industry overall. Um, I think at UFG, for example, we’ve seen women take on significant leadership roles across the organization and our brands. Um, and it also creates another important, I would say, opportunity for women who enter franchising today. They can see a much broader range of career opportunities and leadership paths for them to pursue. And I think that that’s a lot different than even, you know, a generation ago or even when I I started in my career. So that’s really an exciting um place to be.

Taylor McCarley: 08:52
Yeah, no, definitely. Now, with women representing you know about 30% of franchise owners, what challenges still need to be addressed?

Christina Parsons: 09:00
Ooh, I mean, just because we’re growing doesn’t mean it’s finished, right? I mean, I think there’s all kinds of things, and this is not just specific to women, but you know, access to capital, uh, additional mentorship opportunities, right? Allowing women who are just coming into the franchising space to have more opportunities to work with women who’ve who’ve been in the trenches for a while, um, you know, networking to help build their confidence, education, um, and visibility, right? I think that those are all, you know, important things uh, you know, not only for women who are working within uh working with franchisors, but also women that are running uh the franchise brands. So I don’t think the goal should really just to be like, let’s increase the percentage overall. But I want to make we want to make sure that women um who want to pursue franchise opportun ownership have access to the information and resources and the support they need, as well as women who want to pursue careers in franchising, um, because I think that’s gonna be important as we move forward.

Taylor McCarley: 10:01
Yeah, no, definitely. And and you brought up a good point in that in that answer, bringing up mentorships. So, how important is mentorship for women entering uh franchise ownership?

Christina Parsons: 10:11
I mean, I think it’s incredibly important. Um, and even on the franchisor side, I think that that’s incredibly important. But I think one of the big advantages of franchising is that you are joining that network, right? So you are in rooms where you are learning able to learn from people who have already done this before. Um, and obviously, women having other women to speak to, right, they’re gonna have a lot of shared experiences. And maybe that’s hey, I’m starting this business and I’m juggling a family. Hey, I’m starting this business after I have pursued a different career. And I think um being able to kind of discuss those shared experiences and learn from other women who are going through what you want to be doing is incredibly valuable.

Taylor McCarley: 10:53
Yeah, 100%. Uh now, Christina, what would you say to a woman who is interested in franchise ownership, but maybe is a little unsure, maybe is a little on the fence about the possibility.

Christina Parsons: 11:05
Yeah, I mean, I think I would say like, don’t confuse a being ready from your ability to start learning. Um, you know, just enter into this knowing that you’re not gonna have every single answer to every single question. Um, and the first step isn’t necessarily buying a franchise, it’s educating yourself about what the opportunities in franchising look like, either as a career that you want to pursue with a franchisor or to own your own business. But, you know, talk to franchisees, right? Talk to the franchise or themselves, understand the support, the financial requirements. I mean, women are great at asking questions and getting to the bottom of things. So I think just making sure that you are um informed, be being informed um so that you can be in a better position to decide whether or not that’s the right path for you.

Taylor McCarley: 11:55
Yeah, absolutely. I mean, you don’t have to have all the answers.

Christina Parsons: 11:58
You don’t have to have all the answers. Yeah, that’s what the support team is for, and that’s what the mentorship programs are for, right? There’s just a group of people that are invested in your success and are there to support you every step of the way. And I think that is very unique to franchising.

Taylor McCarley: 12:15
Absolutely. So then, Christina, looking ahead, where do you see women in franchising in the next five to ten years?

Christina Parsons: 12:21
Yeah, I definitely expect that women will continue to become an increasingly important part of franchise ownership and franchise leadership at the franchise or level. Um, we’ve already seen that share of women franchise owners increase. Um, but I think the next opportunity is in terms of continuing that participation, um, is helping women really build successful, sustainable businesses and move into those leadership positions throughout the industry will really come down to the support that we provide women as they move forward and just continuing to create opportunities for women to move up in the organizations that they’re in.

Taylor McCarley: 13:03
Yeah, absolutely. Well, Christina, this has been a really insightful conversation. A lot of great stats, a lot of great numbers, and really excited about the opportunities and possibilities for women in franchising. Uh, as we wrap up here, if you could leave the listeners with maybe one message about women and franchising, what would that be?

Christina Parsons: 13:20
Yeah, I would say that, you know, women have already demonstrated um that they belong in franchising. They’re building businesses, they’re leading teams, they’re contributing to the growth of the industry. Uh, so I really do think that the conversation now is about opportunities and us all being conscientious within the industry of making sure that we are creating the right opportunities for women to be able to succeed, and whether that is from how we kind of support them as they’re raising families and, you know, building businesses and just, you know, creating those mentorship opportunities. Um, you know, it’s really not about what women have accomplished thus far. It’s also a story about kind of what the next generation of women in this industry can do. Um, and that’s not just the job of women who are currently in these seats, it’s also the job of the organizations that they work with for um to make sure that those opportunities exist for women.

Taylor McCarley: 14:18
Yeah, absolutely. Uh well, well, that’s a wrap on today’s episode of FranCast. Thanks again, Christina, for taking the time to be with us today and and to talk with us about women building and leading businesses across franchising. If you enjoyed today’s conversation, be sure to subscribe and share this episode with someone interested in business ownership or franchising. I’m Taylor McCarley, and we’ll be back soon with more conversations to help you better understand the opportunities, successes, and where the future of franchising is headed. Thanks for listening.