Franchise Ownership Is Rising Among Women — Here’s Why It Matters – Entrepreneur

Advancing Sustainable Development Goals Through Women’s Empowerment in the Franchise Industry

Executive Summary

This report analyzes the increasing participation of women in the franchise industry as a significant contributor to achieving key Sustainable Development Goals (SDGs), particularly SDG 5 (Gender Equality) and SDG 8 (Decent Work and Economic Growth). The franchising model is emerging as a viable pathway for female entrepreneurship, fostering economic empowerment, promoting inclusive workplaces, and reducing inequalities (SDG 10).

SDG 5: Achieving Gender Equality in Entrepreneurship

Statistical Growth in Female Franchise Ownership

There is a clear upward trend in female ownership within the U.S. franchise sector, indicating progress toward economic gender equality. This growth directly supports Target 5.5 of the SDGs, which aims to ensure women’s full and effective participation and equal opportunities for leadership.

• Female ownership of U.S. franchise businesses has increased to approximately 30%.
• This represents a significant rise from 20.5% recorded in the 2013–2014 period.

Drivers of Increased Female Participation

The franchise model offers a structured and supportive environment that mitigates risks associated with new business ventures, making it an attractive option for women seeking entrepreneurial roles. This aligns with SDG 5 by providing accessible pathways to business ownership.

• Franchising is perceived as a more secure route to business ownership.
• The model provides critical support systems, including training, operational setup, vendor networks, and established brand awareness.
• These assets contribute to a higher probability of business success, empowering women economically.

SDG 8: Promoting Decent Work and Inclusive Economic Growth

Impact of Women-Led Franchises on Business and Community

Women-owned franchises often foster business environments that align with the principles of decent work and inclusive growth. By prioritizing employee well-being and community values, these enterprises contribute positively to local economies.

• Women-led businesses are frequently noted for enhanced creativity and organizational efficiency.
• They often demonstrate strong empathy and listening skills, leading to improved workplace dynamics.
• Reports indicate that women-owned franchises excel in achieving high employee satisfaction and promoting a healthy work-life balance.

Case Studies: Economic Success and Community Engagement

The following case studies exemplify how female franchisees are driving economic growth (SDG 8) and building community-focused enterprises.

1. Michelle Bottino (Fully Promoted, St. Charles, Illinois): After acquiring a franchise in 2018, Bottino transformed it into a community-centric brand. Her business success, recognized through multiple industry awards including Mentor of the Year, highlights her contribution to both the local economy and the development of others, reflecting the principles of SDG 17 (Partnerships for the Goals).
2. Michelle Monhollen (Fully Promoted, Centerville, Ohio): In 2021, Monhollen co-launched a franchise focused on supporting local small businesses, schools, and non-profits. The business achieved over $1 million in sales in under four years, demonstrating rapid economic growth and a commitment to fostering a sustainable local business ecosystem.

Framework for Leadership Development and Reducing Inequalities (SDG 10)

Strategic Pathways for Career Advancement

The franchise industry provides structured opportunities for career progression, enabling women to advance from entry-level positions to executive leadership. This upward mobility is crucial for reducing gender-based economic inequalities. The following strategies are essential for fostering this growth:

• Find a Mentor: Establishing mentorship relationships aligns with SDG 17 (Partnerships for the Goals) by creating supportive networks that facilitate knowledge sharing and professional growth.
• Develop Core Skills: Gaining proficiency in key management areas such as operations, finance, and sales is fundamental to promoting decent work and career advancement (SDG 8).
• Gain Real-World Experience: Progressing through roles of increasing responsibility, from single-unit to multi-unit management, provides the practical experience necessary for effective leadership.
• Build Your Network: Engaging with industry peers, franchisors, and consultants builds professional relationships that can open doors to new opportunities and support systems.
• Demonstrate Leadership: Taking initiative on projects and demonstrating dependability are key to being recognized for leadership potential, directly contributing to SDG 5’s goal of more women in leadership roles.
• Engage in Continuous Learning: Staying current with industry trends through events and professional networks ensures sustained career development and contributes to a dynamic, skilled workforce (SDG 8).

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 5: Gender Equality
   • The article directly addresses this goal by focusing on the increasing role of women in the franchise industry. It highlights the growth in women’s ownership of businesses and their rise to leadership positions, which are central themes of achieving gender equality in economic life. The entire premise of celebrating “Women in Franchising National Appreciation Day” is to acknowledge and promote women’s contributions and presence in the business world.
2. SDG 8: Decent Work and Economic Growth
   • This goal is connected through the article’s emphasis on franchising as a pathway to entrepreneurship and business ownership. It discusses how franchising provides a “smarter and more secure path to business ownership” by offering training, support, and brand awareness. The success stories of women turning their franchises into million-dollar businesses exemplify the promotion of entrepreneurship and the creation of sustainable enterprises, which contribute to overall economic growth.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 5.5 (under SDG 5): Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.
   • The article’s core message aligns with this target. It explicitly states that it is “increasingly likely that there’s also a woman at the top, either as the owner or in a powerful executive position.” The discussion about mentorship, developing core skills, and gaining experience for women to rise “from the ground up” to the C-suite directly supports the idea of ensuring women have equal opportunities for leadership in economic life.
2. Target 8.3 (under SDG 8): Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises…
   • The article showcases franchising as a model that encourages entrepreneurship and the growth of small- and medium-sized enterprises. It details how women are turning to franchising to become business owners and highlights success stories like Michelle Bottino and Michelle Monhollen, who built fast-growing, community-focused businesses. This demonstrates the promotion of entrepreneurship and the growth of SMEs as a driver of economic activity.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicator for Target 5.5: Proportion of women in managerial/ownership positions.
   • The article provides a direct, quantifiable indicator to measure progress. It states, “About 30% of U.S. franchise businesses are owned by women, compared to 20.5% in 2013-2014.” This statistic directly measures the proportion of women in ownership (a top leadership position) within the U.S. franchise sector and shows a clear positive trend over time.
2. Indicator for Target 8.3: Growth and success of women-owned enterprises.
   • The article implies indicators related to the growth and formalization of small enterprises. The success story of Michelle Monhollen’s franchise joining the “Millionaires Club, hitting $1 million in sales in less than four years” serves as a qualitative and quantitative indicator of a small enterprise’s growth and success. The general increase in women choosing franchising as a “smarter and more secure path to business ownership” also implies a move towards formalized, successful business ventures.

4. SDGs, Targets, and Indicators Table

Source: entrepreneur.com