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Franchised Business Ownership by Minority and Gender Groups: An Update for the IFA Foundation

Franchised Business Ownership by Minority and Gender Groups: An Update for the IFA Foundation

PwC was engaged by the IFA Foundation to review data from the U.S. Census Bureau’s 2012 Survey of Business Owners (“SBO”) to determine the prevalence of minority and female ownership in franchised businesses in 2012. Statistics of interest include the percent of franchised businesses owned by minorities and women, comparisons of minority and female ownership rates between franchised and nonfranchised businesses, and comparisons within business lines where franchises are most prevalent.

This report summarizes our findings and makes comparisons with results for 2002 and 2007. The primary purpose of this report is to answer two related questions: First, “What percent of franchised businesses are owned by women or minority group members?” Second, “What percent of women-owned or minority-owned businesses are franchised?” This report answers these two questions by presenting information on (1) the percent of franchised businesses that are owned by each minority and gender group; and (2) the percent of businesses owned by each minority and gender group that are franchised. In addition, an appendix to the report presents ownership information based on the size of a business, as measured by receipts and employment.

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