This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why Aren't There More Hispanics in Franchising?

Torres points to a low headcount in many franchisors' management and executive teams. "In general that is the handicap. When you don't have inside your company a workforce that can identify with that [at the executive or management level] it's tough to go after it," he says.

Guillermo Perales, the largest Latino franchisee and CEO of Sun Holdings, owner of nearly 400 franchises in the Dallas-Fort Worth area, including Arby's, Popeye's, Golden Corral, Burger King (BKC), CiCi's and Del Taco, says more franchisors need to incentivize their teams to bring on Hispanic franchisees.

"I don't think they're actively seeking [franchisees] because in their mind it's not a top priority," he says. "They don't have outreach programs to look or bring or incentivize some Hispanics to come into the system."

>>>Refranchising Gets Hot Again In The Restaurant Industry

At Burger King, "I've been able to send a couple of Hispanic candidates to grow our base. They also have a small program where if you have the resources, you can start by operating the store with no real estate and you pay for equipment and business," Perales says. "That's an easy way for franchisors to start incentivizing the employee that have been with them for a long time."

Many franchisors also don't understand the financial and cultural differences within the group.

"It's not one-size-fits-all. All Latinos are a little bit different. Some franchisors don't really understand the culture. A Latino here from Mexico for three generations is different from a first-generation person that moved from Brazil. There is different type of mentality and type of Spanish," Perales says.

While the level of affluence in the Hispanic market is growing "exponentially," Latinos in general are less likely to have strong credit profiles because there is a general mistrust in banks. Many don't use credit cards and prefer to put their money into hard assets or other currency, Torres points out.

"The financial profile on paper raises a lot of questions," he says. "They have a different behavior when it comes to managing their finances, and franchisors have to recognize that before disqualifying -- dig deep into what is exactly his financial profile and why his credit profile is so low. Franchisors either don't have the time or the energy" to do that.

One franchisor that seems to be making headway with the Hispanic community and in adding Hispanic franchisees is Liberty Tax Service.

Torres notes that the tax preparation services franchise "has done what I call everything right," he says.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $125.69 -0.25%
FB $87.22 -0.38%
GOOG $525.02 0.41%
TSLA $267.88 -4.23%
YHOO $38.23 -0.98%

Markets

DOW 17,776.91 +93.33 0.53%
S&P 500 2,081.34 +12.58 0.61%
NASDAQ 4,997.4590 +5.5190 0.11%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs