minority outreach programs in franchising · mcdonald's corporation metromedia restaurant...

MINORITY OUTREACHPROGRAMS IN FRANCHISING

RESEARCH REPORT AND CASE STUDIES

Published by

Sponsored by

Project Coordinator and EditorRichard Willard

PresidentManagement Resources International

Copyright©2001 IFA Educational Foundation. All rights reserved.

IFA EDUCATIONAL FOUNDATION

LIST OF PARTICIPATING COMPANIES

Advantica Restaurant Group

Blimpie International, Inc.

Burger King Corporation

Candy Bouquet International Inc.

Coca-Cola Company

Cendant Corporation

Choice Hotels

Marriott International, Inc.

McDonald's Corporation

Metromedia Restaurant Group

PepsiCo, Inc.

PostNet International Franchise Corporation

Six Continents Hotels

Subway Corporation

The IFA Educational Foundation expresses its sincere thanks to these IFA member companies for participating in the study.

MINORITY OUTREACH PROGRAMS IN FRANCHISING2

List of Participating Companies ................................2

Acknowledgments ....................................................3

Overview..................................................................4

Part I – IFA Member Survey Results ..........................4

Part II – Examples & Case Studies ............................5

PostNet ..............................................................6

Choice Hotels ....................................................7

Blimpie ..............................................................9

Denny’s ..........................................................10

Coca-Cola ........................................................11

MetroMedia Restaurant Group ........................12

Cendant ..........................................................13

Subway............................................................14

Marriott............................................................15

Burger King......................................................16

PepsiCo ..........................................................17

Candy Bouquet ................................................18

Ronald McDonald House Charities..................19

Six Continents..................................................20

IFA Minorities in Franchising Program ............21

By Category –

Minority Outreach & Recruitment ............................5

Diversity Awareness/Training ..................................10

Financial Assistance................................................12

Diversity Supplier Program ....................................15

Other......................................................................18

TABLE OF CONTENTS

MINORITY OUTREACH PROGRAMS IN FRANCHISING 3

Rapid demographic changes are reshaping the American and global marketplaces,creating many new challenges and opportunities for franchisors, franchisees and

suppliers. One of the most significant changes is the growth of minority populations.This growth affects how we conduct business at every level – corporate, company-operated and franchised locations.

The purpose of this report is to provide a look at how some franchise systems areaddressing these changes by developing programs specifically targeted to minorities.

On behalf of the IFA Educational Foundation, I would like to express our sincerethanks to all who took part in preparing this report. Many thanks to the PepsiCoFoundation for their financial sponsorship of this project. In particular, to JackieMillan, director of corporate contributions, and Ron Harrison, senior vice president,global diversity and community affairs. For many years, Ron spearheaded IFA’s minor-ity programs as chairman of the Minorities in Franchising Committee and later asChairman of the IFA.

Many thanks to the members of IFA’s Minorities in Franchising Committee who assistedin preparation of this report. Many thanks to IFA staff members Sonya Brathwaite,Director of Diversity and U.S. Emerging Markets and Marcel Portmann, Vice President,Emerging Markets and Global Development, and to EF staff members John Reynolds,President, and Kathryn Morgan, Director of Research and Education.

Many thanks to Dick Willard, President of Management Resources International, forhis tireless, patient and persistent efforts to make this report a reality.

Most of all, many thanks to the IFA members who participated in this study by sharinginformation about their programs and activities. It is our hope that through suchsharing and exchange of information, we can all benefit from the lessons learned andexamples set forth in these pages.

Sid FeltensteinChairman, IFA Educational FoundationChairman & CEO,Yorkshire Global Restaurants

ACKNOWLEDGMENTS


MINORITY OUTREACH PROGRAMS IN FRANCHISING

PART I - IFA Member Survey Results

Scope of Study

For purposes of this study, the term "ethnic minorities" refersto African-Americans, American Indians, Hispanic-Americans, and Asian-Americans. The objectives of the studywere to:

• Undertake an initial survey of selected IFA members toidentify those companies that have minority participa-tion/outreach programs in place.

• Gather initial information on the scope of thoseprograms.

• Select a group of potential companies whose programscould then be further profiled as examples.

• Work with selected companies to produce a final reportwith examples of specific minority outreach programsand resource information.

This study is not a comprehensive report of all IFA memberprograms and activities in this area, nor is it a census ofminority participation in franchise ownership or operations.Rather, the study is an overview with examples of minorityoutreach programs in franchising that can serve as a guide toencourage the development of additional programs.

MethodologyThe sampling of IFA member companies selected for thesurvey included franchisors with 500 or more units, membersof the IFA Board of Directors, and the IFA Minorities in

Franchising Committee. Seventy-one (71) companies wereselected for the sampling. A letter, signed by the IFAEducational Foundation Chairman and IFA Minorities inFranchising Committee Chairman, was sent to the CEO ofeach company, together with a short survey questionnaireasking them to identify specific programs and activitiesfocused on minorities in the areas of --

◗ Recruitment and Marketing Efforts - targeted to minori-ties as franchisees

◗ Financial Assistance - or other programs designed toassist minorities in acquiring or starting a franchise withthe company

◗ Employee Recruitment - either for corporate office or forcompany store operations

◗ Employee Recruitment – to assist franchisees and/or storemanagers to recruit minorities as employees at the localstore level

◗ Consumer Marketing – marketing and advertisingprograms targeted to minority segments of the popula-tion

◗ Diversity Awareness Training programs◗ Other kinds of activities targeted toward minorities.

Follow up calls were then made by the staff of ManagementResources International, an independent consulting companyunder contract to the IFA Educational Foundation to assistwith the study. Of the 71 companies in the sampling,responses were received from 65 companies, or a 92 percentresponse rate.

This study was undertaken to provide both an overviewand a glimpse of specifics in the minority programs

underway in some franchise companies today. The study isin two parts. Part I summarizes the findings of a surveyconducted of IFA member firms with 500 or more units,including member companies on the IFA Board of Directorsand Minorities in Franchising Committee. Of the 71 compa-nies surveyed, 65 responded (an excellent response rate of92 percent).

Part II of the study provides profiles of specific programs.The study is by no means a comprehensive report, but isintended to provide an overview of how some franchisesystems are responding to the opportunities and challengesthat all businesses are facing. The study provides examplesof programs and activities in these categories – minorityfranchisee recruitment, minority employee recruitment,consumer marketing, financial assistance, diversity awarenessand training, supplier relations, and other programs.

OVERVIEW


General Observations

• Among the companies in the sampling, the hotel/lodgingand quick service restaurant segments reported thelargest number of companies with programs in the areassurveyed. This is also the largest category of IFA’smembership, with multiple business locations and thelargest number of employees.

• Of the 71 companies in the sampling, 6 did not returnthe survey or respond to follow up telephone messages,and 5 declined to participate in the survey. Several ofthe latter had minority participation programs in theearly pilot stages and did not want to release informationat this time.

• The terrorist events of September 11th impacted theresults of the study in that several companies that hadinitially agreed to have programs profiled for the studysubsequently withdrew their offers over concerns aboutpossible curtailment of these programs for economicreasons.

The remaining sections of this study profile the minorityoutreach programs of a number of IFA members, organizedby the various sections of the survey. Further details of thesurvey results are reported at the beginning of each respec-tive section.

Summary of Survey Responses No. %Recruitment & Marketing Efforts targeted to minorities as franchisees 20 31Financial Asst. & other programs to assist minorities to acquire franchises 11 17Minority Employee Recruitment at corporate level 26 40Employee Recruitment - helping franchisees recruit minority employees 4 6Consumer Marketing - targeting minority populations 27 42Diversity Awareness & Training Programs 22 34Other Minority Participation Programs 12 19Do not sponsor any minority participation programs 16 25Do not want to participate in IFA survey project 5 7.7

PART II - Examples of Member Programs/Activities

The following profiles of IFA members‘programs or activities were either directly provided by IFA members, or were devel-oped by Management Resources International based on interviews with, and subsequent review by, IFA members.

MINORITY OUTREACH & RECRUITMENTPrograms that are designed to reach out to minority populations as customers or franchisees/employees

Consumer Marketing

Forty-two percent of the respondents reported that they havemarketing and advertising programs targeted to minoritysegments of the population. This question received thehighest number of positive responses. Most place ads in avariety of minority publications and media, and ensure thatthere are diverse populations represented in their variousadvertising materials and messages. In the quick servicerestaurant sector, a number of franchisors modify menus andfood offerings in locations with high concentrations of minor-ity populations.

Employee Recruitment – Corporate & Franchisee

Forty percent of the respondents reported that they haverecruitment efforts at the corporate level specifically targeted

to minorities. These vary from employee ads in minoritypublications, and working with Historically Black Collegesand Universities (HBCUS), to contracting with minority-owned search firms.

At the unit level, the majority of respondents reported thatthis was an area of responsibility of the local manager. Inmany cases the franchise agreement requires that thefranchisee, as an independent operator, deal with employeerecruitment and management matters. Six percent of therespondents provide some assistance to franchisees and/orstore managers in recruiting minorities as employees at thelocal level. Some were aware of local initiatives in thisregard, but that it was not the responsibility of the parentcompany.

Brief DescriptionPostNet International is a sponsor, and one of the franchiseparticipants, in the Chicago area Connections for CommunityOwnership program where they have succeeded in openingseveral local PostNet franchise stores in the urban renewalareas of the city.

Key Contact PersonBrian Spindel, Executive Vice President PostNet International Franchise Corporation 181 North Arroyo Grande, #A-100 Henderson, NV 89014 Tel: 1-800-841-7171 or 702-792-7100 (ext. 183) Fax: 702-792-7115E-mail: [email protected]

Background InformationSeveral years ago, PostNet International President SteveGreenbaum, originally from the Chicago area, was intro-duced to the Connections for Community Ownershipprogram as part of the company's efforts to broaden itsgeographic base of franchise operations and diversify its baseof minority franchisee ownership. In 1999, the Connectionsfor Community Ownership program, a project of the Centerfor Neighborhood Technology, together with the LatinoFranchise Project, formed The Franchise Partnership whoseobjective is to bring "brand" companies into Chicago's urbanrenewal areas. Through the program, PostNet Internationalhas successfully opened 3 franchises in these areas, has oneadditional store in development, and is seeking to expand toadditional locations in the area.

Program HighlightsThe Chicago Franchise Partnership, together with othercooperating non governmental organizations and local finan-cial institutions, seeks to bring "brand" businesses into theurban renewal areas of Chicago and match them with a poolof screened and qualified African- and Hispanic-Americanbusiness candidates. The Partnership has identified a pool ofsome 3,000 candidates, and works with them on an ongoingbasis to prepare them for business ownership. ThePartnership also operates a Loan Fund (established with thesupport of local banks, foundations, the FederalEmpowerment Zone, and the Community DevelopmentFinancial Institute Fund), which helps individuals finance theacquisition of a franchise provided they have 15% (instead ofthe usual 25-40%) of the initial funds required for thepurchase. Through a series of introductory seminars, thecandidates are introduced to potential franchisors. ThePartnership then works with candidates on site selection,

market analysis, financing and help in promoting thebusiness once it is established. Since its establishment in2000, the Partnership has developed a total of 5 franchises inthe urban renewal areas. It is currently working with some25 franchisors, and ultimately seeks to establish 20-25 newlocal franchise operations annually.

The three existing, and several pending, PostNet franchiseswere developed without PostNet's having to modify its estab-lished franchisee requirements in terms of qualifications orcapital requirements. PostNet has attended 3 of theprogram’s introductory seminars to date, and has averagedone new franchisee per seminar - a rate of return thecompany considers very good. In an interesting refinement ofthe usual franchising arrangement, one of the PostNetfranchises under the program is actually owned by the LatinoFranchise Project, with the understanding that the franchisemanager will ultimately take over as the franchisee.

The program's effectiveness is the result of several factors.First, the dedicated effort to qualify people within the localcommunity and to nurture them until they are ready toacquire a franchise. Second is a partnership with thefranchise community. In exchange for the services providedby the program, collaborating franchisors pay a fee thatranges from $4,500 to $9,750 (depending on the paymentoption selected and the number of franchise units devel-oped). The fee helps to support the program and, in turn,greatly facilitates the program's ability to attract foundationfunding by demonstrating an outside source of program-related funding coming into the program from the franchisebusiness community. In PostNet's experience, the programhas also been successful because the company's leadershipis fully committed to the program.

Additional Information/ResourcesIFA member Sign-A-Rama has also established two franchisesunder the program. IFA members seeking information on thisunique partnership effort on behalf of minority communitiescan contact:

David ChandlerManager for Economic Development & Program DirectorConnections for Community Ownership2125 W. North AvenueChicago, IL 60647-5415Tel: (773) 278-4800 Ext. 123Fax: (773) 278-3840E-mail: [email protected] site: www.cnt.org


Name of Program:

Connections for Community Ownership

M I N O R I T Y O U T R E A C H & R E C R U I T M E N T


Brief DescriptionChoice Hotels has developed a free, four-hour seminar on"Exploring the Potential of Franchising" specifically targetedat minority entrepreneurs.

Key Contact PersonDr. Pat MurphySenior Director of Corporate EngagementChoice Hotels10720 Columbia PikeSilver Spring, MD 20901Tel: (301) 592-6672Fax: (301) 592-6200E-mail: [email protected]

BackgroundThe workshop was developed as part of Choice Hotel'songoing effort to attract more minority entrepreneurs to itsfranchising base. The free, four-hour workshops are offeredin various major metropolitan areas across the United States.

Program Highlights"Exploring the Potential of Franchising," is designed to famil-iarize prospective franchisees with franchising in general andwith hotel franchising and Choice Hotels in particular. Topicscovered include demographic trends that favor hotelfranchising, what to look at (and look out for) when evaluat-ing hotel opportunities, capital and operating costs, sourcesof capital and financing. Research tools, marketing strategies,cash flow, construction and royalty fees are also discussed.

The following is an outline of the workshop.

I. WELCOME

II. OBJECTIVES

III. FRANCHISING: WHAT IS IT?

A. Types of FranchisesB. How does franchising work?

1. Cash Flowa. Initial Feeb. Royalty Feec. National Named. Advertising

2. Making Money (How)C. How do you get into the game? (Self-assessment)D. Personality and interpersonal skills

E. Buyer Beware1. UFOC Uniform Franchise Offering Circular2. Checklists to ask questions (What to ask a

franchisor before you commit)3. Compare successful and unsuccessful

F. Sources of capital1. Equity2. Debt3. Liquidity

IV. HOTEL FRANCHISING BUSINESSA. Business Model for FranchisesB. Trends (Internet, aging population, etc.)C. Can be labor intensive for ownerD. Conditions, constraints, realities of the businessE. Self-assessment for hotelsF. How to estimate revenues

1. Annual publication of Smith Travel Research2. Created the most extensive and definitive

database for hotel industry revenues and expenses3. Over 3,000 hotels and their operating statements4. Host Data Service contains information on:

a. Hotel revenuesb. Operating expensesc. Payroll costs for all industry segmentsd. Segmented into departments

i. Roomsii. Food and beverageiii. Marketingiv. Utility costsv. Property maintenancevi. Administrative and general

5. Custom reports can be generateda. Entire states or metropolitan areasb. Composite data on groupings of individ

ually selected hotels or competitive sets6. Typical Analysis

a. Ratios to salesb. Amounts per available roomc. Amounts per occupied room night

7. Usersa. Lenders and lodging creditors to

compare with borrowers projectionsb. Owners and investorsc. Appraisers and consultants for tailored

benchmarking data for comparable hotels in a specific market sector, city, or metropolitan area

G. Checklist for hotels(Continued on page 8)

Name of Program:

Choice Hotels Exploring the Potential of Franchising Seminar



(Continued from page 7)V. HOW TO TAKE ACTION

A. Find your marketB. Conduct a feasibility studyC. Put together a loan proposal: Review main pointsD. Profiles of different successful strategiesE. External third partyF. TestimonialsG. Resources

1. Contact list2. Information list3. Tailored pre-meeting questionnaire4. Feasibility Study Sample

Additional Information/Resources

The following are suggested resource organizations:

Mr. George Herrera US Hispanic Chamber of Commerce 2175 K Street NW Suite 100 Washington, DC 20037 202-842-1212 Ms. Mary Grainger US Department of Commerce Minority BusinessDevelopment 26 Federal Plaza Room 3720 New York, NY 10278 212-264-3482 [email protected]

Mr. Andy Ingraham National Association of Black Hotel Owners, Operators andDevelopers 3520 W. Broward Blvd. Suite 218 B Ft. Lauderdale, FL 33312 954-792-2519


Brief DescriptionThe BUILDS Program was developed in conjunction with theDepartment of Housing and Urban Development (HUD) tooffer franchise opportunities to qualified individuals in innercities. The program is geared to those who are willing tooperate a BLIMPIE franchise in urban empowerment zonesand enterprise communities designated for urban renewaland development by HUD.

Key Contact PersonLance R. Moore, Group Vice President Western RegionBlimpie International Inc.1775 The Exchange, Suite 600Atlanta, GA 30339Tel: (770) 984-2707, ext. 104Fax: (770) 980-9176E-mail: [email protected]

Reza CopelandMarketing AssistantBlimpie International Inc.1775 The Exchange, Suite 600Atlanta, GA 30339Tel: (770) 984-2707Fax: (770) 980-9176E-mail: [email protected]

BackgroundThe initial development of the BUILD concept began in1998. The City of Detroit approached BLIMPIE through theSmall Business Administration/One Stop Capital Shop.Detroit is actively advancing programs to invest and establishnew businesses in the urban areas of the city. The first BUILDstore opened in Detroit in March 2001, and 3 additionalfranchise licenses have been awarded for that city. Theprogram is currently targeting 15-20 new BLIMPIE restaurantsin Michigan over the next 3-5 years through the BUILDprogram. BLIMPIE has now launched a $7.5 million urbaninitiative developed in conjunction with the U.S. Departmentof Housing and Urban Development to offer franchisingopportunities to qualified individuals in empowermentzones. Additional cities that have expressed interest in theBUILD program include Seattle/Tacoma, Portland, Denver,Columbia and Chattanooga.

Program HighlightsA potential BUILD franchisee must submit a completed storeBusiness Plan proposal and work in a BLIMPIE restaurant fora specified amount of time to better understand the require-ments and demands of the BLIMPIE store environment. Thestore they plan to open must be located in one of the U.S.designated Empowerment Zones and/or EnterpriseCommunities. BLIMPIE also requires BUILD franchisees tobe owner-operators of the store.

Franchisee candidates first meet with the BUILD SteeringTeam, which includes BLIMPIE managers, SBA and govern-ment personnel, and volunteers from local area banks,colleges, and urban/business development groups. Thecandidates also meet with the BLIMPIE Subfranchisor (or areadeveloper) in the market, who has a contractual agreementand ongoing working partnership with all franchisees in thearea. Subfranchisors will assist in initial business planningand site selection, and will provide aid and training to thefranchisee after their location is up and running.

BUILD franchisees receive their initial training (BLIMPIEUniversity) at the BLIMPIE corporate office in Atlanta, GA.Continuing BLIMPIE -related education and training isfrequently offered in their market areas.

BLIMPIE waives the initial franchise fee of $18,000.However, BUILD franchisees are responsible for paying fullBLIMPIE royalties (10% of gross sales during the entire periodthey own and operate the store). 3% goes back to BLIMPIEInternational, Inc., 3% goes to the area Subfranchisor, and4% goes to local and national advertising.

BLIMPIE works with the SBA and local government agenciesto identify banks and other institutions/business groups thatcan provide help to potential franchisees. The agenciesspecifically aid in building ongoing relationships withfranchisee prospects and help with identifying candidates foradditional BUILD stores.Additional Information/Resources

More information on BLIMPIE International Inc. can be foundat http://www.blimpie.com/.

Name of Program:

BLIMPIE Urban Initiative for Leadership Development (BUILD) Program


10

Name of Program: We CAN! Training

MINORITY OUTREACH PROGRAMS IN FRANCHISING

DIVERSITY TRAININGDiversity awareness and training programs

Thirty-four percent of the respondents reported that they offer diversity training. All those responding offer such programs atthe corporate level, some also for franchise owners, and, in the case of the hotel sector, many within individual franchises.

Brief DescriptionThe We CAN! Training programs broaden awareness ofdiscrimination including all forms of unlawful behavior whichhave an adverse impact on the environment in Denny's.

Key Contact PersonKenneth ParsonVice President, Denny's TrainingAdvantica Restaurant Group203 East Main Street, P-15-11Spartanburg, SC 29319Tel: (864) 597-7361Fax: (864) 597-7069E-mail: [email protected]

Background InformationDenny's recognizes diversity as an essential element of itsbusiness. The company understands that our differences areone of our biggest assets and they create unlimited potentialfor success. Denny’s has continually demonstrated this knowl-edge through efforts to promote tolerance, understanding andrespect for differences. While demonstrating its commitmentto diversity, the company has also communicated that commit-ment and responsibility to each employee through its diversitytraining programs. It is Denny's constant goal to ensure allguests and employees are treated with dignity and respect.

Program HighlightsThe We CAN! Training programs are designed to encouragetolerance and understanding on an individual level whilelaying out for each employee their responsibility, as anemployee of Denny's to provide consistent treatment to eachand every guest. The programs are broken down into separatetraining sessions based on position and the level of responsibil-ity assigned to the individual. The two main avenues throughwhich the company communicates its commitment to diversityis the We CAN! Video Training and the We CAN! DevelopingAwareness workshop.

All employees are required to view the We CAN! VideoTraining and participate in a follow-up discussion which isdesigned to check for understanding of the concepts presentedin the video. The video training focuses on the challenges andperceptions that employees face on a daily basis in the restau-rant industry. It provides tools to help them consistently treateach customer with dignity and respect and gives instructionson the action steps to take when Denny's brand standards arenot maintained. The video training is the avenue through

which the company is able to pass along to each individualwithin the organization, its commitment to diversity and theexpectation of an equal commitment from each employee.

All management and key personnel in the restaurant arerequired to attend the full-day We CAN! DevelopingAwareness workshop. The objective of the DevelopingAwareness program is to teach managers how to create andmaintain an environment in their restaurant that is free ofharassment and discrimination for guests and employees. Thismessage is communicated in a three-part outline.

People: Building Positive Interactions with Guests andEmployeesThe focus of this section is on diversity: recognizing the advan-tages our differences provide and how individual beliefs andstereotypes impact the way someone is treated. This sectioncommunicates to the managers their job of identifying self-fulfill-ing prophecies within their restaurant, and how to break the cycleby helping employees see their behaviors as wrong and correctingthem.

Operations: Managing Guests' Expectations and ExperiencesThis section helps the managers understand guests' expectationsand the importance of realizing perception is reality. Once theyunderstand what the guests' expectations are, they can becomemore effective at managing the guests' experiences by using thetools and resources Denny's has implemented to ensure its brandstandards are being consistently applied.

Accountability: Laws, Policies and the Restaurant EnvironmentThis section teaches managers the Public Accommodations Lawsas well as the Denny's Policies they are responsible for enforcing.It allows them to recognize the negative impact on the environ-ment of the restaurant when these policies are violated, and laysout for them the action steps to take when that occurs.

Denny's continues to refine the diversity training processes toensure its commitment to the message of diversity ismaintained and communicated throughout the organization.

Additional Information/ResourcesMore information on Denny's Diversity Programs can be found athttp://www.advantica-dine.com/. Denny's has shared its story ofbuilding an inclusive culture through a book written by chairman,James B. Adamson, entitled, "The Denny's Story: How aCompany in Crisis Resurrected its Good Name." Adamson's royal-ties from the book, published by John Wiley & Sons, Inc., aredesignated to benefit Save the Children, Denny's national charity.


Brief DescriptionIn February of 2001 the IFA Educational Foundation, withsupport from the Coca-Cola Company, established theDiversity Training Institute. The purpose of the Institute is toprovide a permanent framework for fostering diversity aware-ness and providing training for franchise executives andfranchisees. Coca-Cola made a grant to the Foundation of$250,000 to support the development of the Institute’sprograms and activities.

Key ContactsJuan JohnsonVice President, DiversityThe Coca-Cola CompanyOne Coca-Cola PlazaAtlanta, GA 30301Phone: 404-676-7675Email: [email protected]

Doreen ShanahanVice President, Sales, North GroupThe Coca Cola Company6750 Alexander Bell Drive, Suite 200Columbia, MD 21046Phone: 410-423-3347Email: [email protected]

John ReynoldsPresidentIFA Educational Foundation1350 New York Avenue, NW, Suite 900Washington, DC 20005Phone: 202-662-0764Email: [email protected]

Background InformationDuring the Foundation’s capital campaign, a number ofcompanies including the Coca-Cola Company, PepsiCo,Marriott International and others came forward with grantsspecifically designed to promote expanded opportunities forminorities in franchising. The Diversity Training Institute wasestablished to foster diversity awareness and provide diversitytraining to franchise executives and franchisees.

Program HighlightsAt IFA’s Annual Convention in 2001, the first full-day"Diversity Today" seminar was presented by MauricioVelasquez, president of the Diversity Training Group.Following the Convention, "Diversity Today" seminars havebeen conducted in conjunction with IFA’s regional meetingsheld in major cities. Working with Mr. Velasquez, theFoundation developed a "Diversity Awareness" video withtraining materials that was distributed to all IFA members.

In October of 2001, the Foundation developed a series of on-line training courses, covering "Dynamic Demographics","Workplace Fundamentals", "Marketplace Fundamentals" and"Developing Your Own Diversity Strategy Plan". These on-linecourses are self-paced and are designed to be used as a start-ing point for franchise systems that want to develop their owntraining program, or for companies to use to augment theircurrent training program. The full-day seminar programs andon-line courses have been recognized for CFE credits by the

Institute of Certified Franchise Executives. Inaddition, the ICFE Board has added DiversityTraining as a core component for the course ofstudy that franchise executives must complete inorder to obtain their CFE designation.

Future plans include developing customized marketing andtechnical assistance programs for franchise companies ,research studies to identify benchmarking and best practices,and the establishment of a Diversity Award Program to recog-nize those companies that have developed outstandingdiversity programs.

Additional Information and ResourcesFor a schedule of "Diversity Today" seminars sponsored by theIFA Educational Foundation and the Coca-Cola company, visitthe IFA web site at www.franchise.org, and click on "Events".

To learn more about the series of Diversity on-line courses,being presented by Mauricio Velasquez, president, DiversityTraining Group, visit http://ifa.intralearn.com, and select"Courses", and then select the four online Diversity Courses.

To learn more about the Diversity Leadership Academy, pleasevisit http://www.aimd.org/dla/index.htm.

Name of Program: Diversity Training Institute sponsored by the IFA Educational Foundation in partnership with the Coca-Cola Company

D I V E R S I T Y T R A I N I N G

Brief DescriptionThe Metromedia Restaurant Group teamed up with one of itsfinancial contacts, GS Capital, L.P., to help a Hispanic-American franchisee expand into new markets.

Key Contact PersonLynette McKeeVice President, Domestic Franchise DevelopmentMetromedia Restaurant Group6500 International ParkwayPlano, TX 75093Tel: (407) 333-3533Fax: (407) 333-1380E-mail: [email protected]

BackgroundThe Metromedia Restaurant Group (MRG) represents theBennigan's, Ponderosa Steakhouse and Bonanza Steakhouserestaurant brands - large franchises that require significantinvestment on the part of a franchisee. In order to help facili-tate the involvement of new franchisees, or the expansion ofexisting franchise operations, MRG seeks to develop relation-ships with financial organizations that can help provide thenecessary capital.

Program HighlightsIn 2,000, MRG, through its contacts with GS Capital, L.P.,assisted Mr. and Mrs. Ken Fernandez, Hispanic-Americanlicensees of Bennigan's restaurant franchises in theConnecticut market, to expand and acquire additionalBennigan's restaurants in the Boston metro area. Today, theFernandez family operates Bennigan's restaurants inConnecticut, Massachusetts and New York.

GS Capital, L.P. is a SBA licensed Small Business InvestmentCompany whose mission is to provide a reasonableeconomic return on investor equity while assisting minorityand women entrepreneurs in the ownership and manage-ment of operating businesses. The Fund invests primarily inservice industry businesses. GS Capital has partnered withvarious franchise concepts with the goal of:• Creating opportunity for qualified minority and women

entrepreneurs• Creating sustainable jobs in low and moderate-income

communities.

The Fund also considers private companies, new companiesthat have or are developing relationships with establishedbusinesses, companies that were formerly units of largercorporations and new franchises with a proven track record.The Fund prefers business development, expansion andacquisition strategies. However, it will also consider start-ups. The Fund’s preferred total investment amount is $1million to $4 million.

In cooperation with GC Capital, Mr. and Mrs. Fernandezformed Irish Pub Restaurants Inc. to acquire and operate 3additional Bennigan's restaurants in the Boston area, withrights to develop 8 additional units over a 5-year period. Thecompany has developed one new restaurant and currentlyhas 3 additional units in various stages of development. KenFernandez manages the company as well as a constructioncompany that has built restaurants for other franchisees. Ken,and the Irish Pub Restaurants team, were recently awardedthe President’s Achievement Award for OperationalExcellence at the Bennigan’s national operators conferenceheld in Lake Tahoe, Nevada. Additionally, Ken is a foundingmember of Bennigan’s Franchise Advisory Council and headof the group’s construction committee. Examples of other GCCapital's franchise investments include Air Stones Inc., whichoperates specialty retail concepts in airport retail centers;Party Land Inc., a worldwide franchisor of party-relatedaccessories; New Jersey Food Ventures, Inc. which operatesfive Friendly's restaurants; and AES Management whichoperates a Popeye's Chicken and Biscuits franchise inCleveland, Ohio.

Additional Information/ResourcesMore information on the Metromedia Restaurant Group canbe found at http://www.metrogroup.com

Additional information on GS Capital, and its investmentportfolio, can be found at www.gscapitalfund.com or bycontacting:

Richard J. Gessner, Jr., PartnerGS Capital, L.P.435 Devon Park Dr., Suite 612Wayne, PA 19087Tel: (610) 293-9151Fax: (610) 293-1979E-mail: [email protected]


Name of Program: Metromedia Restaurant Group

FINANCIAL ASSISTANCEFinancial assistance or other programs designed to assist minorities in acquiring or starting a franchise

17% of the respondents reported that they had financial assistance or other programs specifically designed to assist minorities inacquiring or starting a franchise with their company. This percentage, however, is somewhat misleading since many of those inthe survey offer either direct financial assistance and/or access to special banking relationships for all franchisees without specialregard to minority status. These are not included in the 17% figure.


Name of Program: Keys to Success - Building Wealth through Hotel Ownership program

F I N A N C I A L A S S I S TA N C E

Brief DescriptionThe Cendant Keys to Success - Building Wealth through HotelOwnership program has been created as a result of thecompany's recognition of the under representation of African-American, Hispanic, and Native American owners in the hotelindustry. The elements of this program have been created toprovide the new franchisee with the resources, support and infor-mation to assist him or her as a new Cendant franchise owner.

Key ContactNicole Johnson-ReeceDirector, Diversity and Emerging MarketingCendant CorporationOne Sylvan WayParsippany, New Jersey 07054Tel: (973) 496-7439 • Fax: [email protected]@cendant.com

BackgroundAccording to the U.S. Census Bureau, as of 1999 African-Americans constituted 12.8 percent of the U.S. population andHispanics made up 11 percent. However, these numbers arenot reflected in hotel ownership industry wide. CendantCorporation recognizes this as an opportunity for African-Americans, Hispanics and Native Americans to play a moreprominent role in the ownership of hotels. The program alsoallows Cendant to continue to grow its hotel brands in anincreasingly competitive environment.

Program HighlightsThe Keys to Success - Building Wealth through HotelOwnership program is designed to attract more African-American, Hispanic, and Native American entrepreneurs intothe Cendant family of hotel brands by building awareness of theopportunities that exist in hospitality. The benefits of a Cendantfranchise relationship include strategic national marketing andadvertising programs, central reservation systems, on-goingtraining, technology support and many others.

Development AllowanceCendant recognizes the financial challenge that entrepreneursface when trying to develop a new business. To assist in thisarea Cendant offers a development allowance to propertieswith at least 51% minority ownership* of $1000/room forproperties with up to 74 guest rooms, and for larger properties,$1500/room for each room in excess of 74 guest rooms. Thisallowance is capped at $150,000. The allowance is payable tothe franchisee upon official opening provided it has met allopening requirements.

Management Company MatchingCendant's goal is to provide franchisees with access to thetools needed to pursue hotel ownership. The Company may

require that a franchisee's property be matched with a profes-sional hotel management company, depending on thefranchisee's prior hotel management experience. This manage-ment company will manage the property for its first year ofoperation. Referral to a management company will also beprovided at any time upon the franchisee's request.

TrainingCendant offers training to all of its franchisees through thecompany's state of the art HUBB (Hospitality University byBrand) training center which is located at corporate headquartersin Parsippany, New Jersey. This training is required of all newowners and general managers and is designed to give franchiseesthe tools and information necessary to meet brand standards.

Financing ReferralsLocating funding sources is usually a challenge for entrepre-neurs. Cendant has relationships with numerous lenders andwill introduce a new franchisee to these sources. In addition,Cendant continuously seeks out funding sources for minoritybusiness ventures, and has a department dedicated to assistingfranchisees with locating capital.

MentoringThe mentor program provides a positive learning environmentand teams new franchisees with coaches to guide themthrough various standards, operations, and sales and marketingstrategies. These coaches are experienced successful franchiseowners and their employees who have volunteered to serve asmentors and guides for their fellow franchisees.

Dedicated Single Point of ContactIn addition to the Franchise Services Manager and the BrandMarketing team, Cendant has dedicated resources at its corpo-rate headquarters to provide assistance to franchisees. Theseindividuals are dedicated to serving as a single point ofcontact and assisting the new franchisee with a smoothprocess to opening.

Additional Information/ResourcesMore information on Cendant's Keys to Success Program can befound at http://www.cendant.com/franchising/minority_fdp.html.Below is a list of organizations the company supports, or towhich it has made presentations.

IFA – Minorities in FranchisingRainbow/Push – Wall Street ProjectBlack Enterprise Entrepreneur's ConferenceNational Association of Black Hotel Owners,

Operators and DevelopersUS Hispanic Chamber of CommerceNational Minority Supplier Development CouncilNational Association for the Advancement of Colored PeopleNational Urban League

Brief DescriptionSubway offers a special program to build minority franchiseeownership by providing financing of up to 90% of thefranchise fee, combined with equipment leasing assistance.

Key ContactDon FertmanDirector of Franchise SalesSubway Corporation325 Bic DriveMilford, CT 06460Tel: (203) 877-4281 ext. 1320Fax: (203) 783 - 7320E-mail: [email protected]

BackgroundThe program was started approximately eight years ago. Itwas born out of recognition of the fact that the companyalready had many minority-owned franchises, and the needto expand its geographic presence in more markets that serveminority populations. The program is managed internally.

Program HighlightsThe qualifications for participation in Subway's minorityownership financial assistance program are the same foranyone wishing to become a Subway franchisee. All musthave a basic financial background, business sense, must passa basic math and English language skills test, and go throughthe interview process. For qualified minority candidates,Subway offers a program that finances up to 90% of theinitial franchise fee - with the first six months interest free -and assistance with equipment leasing. Together, theseaccount for about 50% of the initial required investment.

Subway also offers another program designed to expandSubway franchises in low-density markets where Subway isseeking to expand its presence. The program finances up to$25,000 of the initial leasehold improvements needed toopen a Subway store. Although this is a separate, unrelatedprogram, it often works in tandem with the minority financialassistance program since both tend to operate in the sameurban market areas.

In Subway's experience, however, not all minority franchiseowners have taken full advantage of the financial assistanceprogram. Rather, the majority of participants have used it as astarting point to get into the business, rather than as a meansfor long-term financing. Most participants pay off the fullinitial franchise fee after the first six-month interest-freeperiod.

Additional Information/ResourcesFor more information, please visit the Subway web site athttp://www.subway.com/.


Name of Program: Subway Minority Ownership FinancialAssistance Program

F I N A N C I A L A S S I S TA N C E


Brief DescriptionThe Supplier Diversity Program represents a conscious effortby Marriott International Inc. to increase supplier diversityamong locally owned businesses in the communities in whichthe company operates. It establishes a specific target of totalpurchases that are to come from minority-owned and women-owned businesses.

Key Contact PersonMichael TobolskiSenior Director, Supplier DiversitySupplier Diversity Program, Marriott International Inc., Dept.977.70Marriott DriveWashington, D.C. 20058Phone: 1-877-276-0249 • Fax: 301-897-9014E-mail: [email protected]

BackgroundMarriott International Inc. created the Supplier DiversityProgram as part of an effort to facilitate the accessibility of localminority-owned businesses as suppliers to the corporation.

Some of the products and services frequently purchased orcontracted include:• Construction• Cleaning and Maintenance Services (e.g., carpet cleaning,

windows, janitorial, hood cleaning, etc.)• Dry Cleaning• Florist, Fresh Flowers• Food & Beverages• Interior Design Services• Landscaping• Marketing & Advertising• Paper & Office Products• Printing Services• Transportation & Storage• Trash Removal

Each company that applies to the Supplier Diversity Program isevaluated according to the following requirements:• Be certified as a Minority- or Women-Owned business• Meet or exceed our high standards of quality• Provide excellent service• Competitive pricing• Meet our insurance and indemnification requirements• Can provide on-time deliveries• Food manufacturers or distributors must be ASI approved• Hospitality references a plus

Program HighlightsIn 1998, Marriott enhanced the company’s commitment toincrease supplier diversity by committing that at least 5% oftotal purchases will come from minority-owned and women-owned businesses by year-end 2001.

In 1999, Marriott International also developed a Second-TierProgram, which requests that the prime suppliers spend 5%with minority- and women-owned businesses in fulfilling theirprocurement commitments to Marriott.

Marriott’s firm commitment in this area comes from the recog-nition that partnering with minority-owned and women-ownedsuppliers with the same customer-driven focus, will best serveMarriott’s diverse array of customers. In order to ensure thatwe meet this goal, the company has instituted a SupplierDiversity Policy, which requires that each division and corpo-rate departments support the Supplier Diversity Program.Supplier Diversity is included in the annual written objectivesof our senior management, which are assessed in the perform-ance evaluation process. The company President and ChiefOperating Officer as well as Executive Vice Presidents andGeneral Counsel require periodic progress reports on programactivity. Diversity progress reports are also given at eachmeeting of the Marriott International Board of Directors.

Marriott continues to partner with a variety of organizations,including the National Minority Supplier DevelopmentCouncil, United States Hispanic Chamber of Commerce, andNational Association of Women Business Owners. Thecompany is committed to enhancing its relationships withlocal communities in key market cities around the country bycollaborating with the regional affiliates and local chapters ofthe national organizations previously mentioned. Our effortshave been well reflected in our 2000 national minorityprocurement activity in which we have generated more than$150 million in subcontracts to MBE/WBE’s.

Additional Information/ResourcesThe Supplier Diversity Program was designed and developedinternally by the company's management and staff. Moreinformation on the program can be found athttp://www.marriott.com/corporateinfo/supplier/default.asp.

You can also download the Supplier Diversity CompanyProfile Form (PDF 100k).

(Continued on page 16)

DIVERSITY SUPPLIER PROGRAMProgram designed to broaden the involvement of minority-owned firms as suppliers.

While there were no questions in the survey about minority supplier programs, several respondents reported minority supplierprograms as part of their overall minority participation activities.

Name of Program: Supplier Diversity Program


Name of Program: BURGER KING Diversity Supplier Program

(Continued from page 15)

Additional resource organizations include the following:National Minority Supplier Development Council

{www.NMSDCUS.org}United States Hispanic Chamber of Commerce, {www.USHCC.com}

National Association of Women Business Owners {nawbo.org}

Primary contacts vary depending on what we need from thevarious organizations. Check out their web sites for moredetailed staff info.

D I V E R S I T Y S U P P L I E R P R O G R A M

Brief DescriptionBoth BURGER KING and Restaurant Services, Inc. ("RSI"), thepurchasing agent for the BURGER KING® System in the U.S.,have committed their resources to increase procurementfrom certified minority suppliers.

KEY Contact PersonMagaly Petersen PennDirector, Diversity ResourcesBURGER KING® Corp.17777 Old Cutler RoadMiami, FL 33157Tel: (305) 378-3074 • Fax: (305) 378-3114E-mail: [email protected]

BackgroundSince 1983 and the signing of the first Operation PUSHCovenant with the Rainbow/PUSH Coalition, BURGER KINGCorp. (BKC) has constantly increased its commitment andresolve to include minorities in the BURGER KING® System.BKC's top management is committed to the fulfillment ofdiversity initiatives. It is vital that BKC's system fully engagediversity at all levels of the business so that the company canensure that BKC continues to be relevant and responsive toits consumer needs.

BKC is a member of the National Minority SupplierDevelopment Council (NMSDC), and has implemented aplan to identify and develop minority suppliers as part of abroader commitment to diversity.

Program HighlightsBoth BKC and Restaurant Services, Inc. ("RSI"), the purchas-ing agent for the BURGER KING System in the U.S., havecommitted their resources to increase procurement fromcertified minority suppliers. BKC works hand-in-hand withRSI. BKC approves the suppliers and RSI enters into purchas-ing agreements with the approved suppliers. BKC alsodevelops the products sold in BURGER KING® Restaurantsand audits the facilities where they are produced. Inaddition, BKC contracts for a variety of services and consult-ing for their worldwide headquarters and field support.

In order to better evaluate a firm's capabilities relative toBKC's needs, potential suppliers are asked to first complete aSupplier Capabilities Questionnaire. The form identifies thetype of business, its minority-owned status, its list of

products; and asks a series of questions related to qualitycontrol. The completion and submittal of the form is not aguarantee of business but only an initial inquiry about apotential supplier. The questionnaire is reviewed by theappropriate user department and the result of the evaluationis communicated to the supplier.

In selecting its suppliers, BKC requires that all companiesprovide quality product(s); offer competitive pricing; demon-strate industry knowledge and expertise; outstandingcustomer service, problem solving ability and resourceful-ness; and be financially stable with a solid track record.

Areas of procurement include, but are not limited to:• Restaurant and office-related maintenance services• Food and paper supplies• Equipment, parts and maintenance• Miscellaneous restaurant supplies including cleaning

agents, uniforms, safety shoes, laundry, linen and exter-minating services

• Office supplies and office equipment

BKC has increased it use of minority suppliers to 4.5% of itstotal purchases, and has set an internal goal of reachingNMSDC's "World Class" status (i.e., 5% of total purchasesplus other criteria) by the end of 2002.

BKC promotes the availability of its Supplier DiversityProgram on the company's web site, and the brochure "TheBurger King® Diversity Story". It also actively attendsnational and state trade fairs where it invites minority suppli-ers to meet with the company representatives; furthermoreBKC representatives are active on the boards of many minor-ity non-profit organizations.

Additional Information/ResourcesMore information on BKC's Diversity Supplier Program,including a copy of the Supplier Capabilities Questionnaireand other details, can be found athttp://www.whopper.com/community/diversity.htm.

For more information on the National Minority SupplierDevelopment Council (NMSDC), please contact them atNational Minority Supplier Development Council (NMSDC)1040 Avenue of the Americas, 2nd FloorNew York, New York 10018Tel: (212) 944-2430 • Fax: (201) 719-9611Web site: http://www.nmsdc.org/


Brief DescriptionSince 1982, Pepsi-Cola has conducted a structured program ofpurchasing quality products and services from suppliers who aredesignated as Minority/Women Business Enterprises (M/WBEs).

Key ContactJ. Frederick Canady, DirectorMinority BusinessPepsi M/WBE Program1 Pepsi WaySomers, NY 10589Tel: 914-767-6616Fax: (914) 767-6799.Email: [email protected]

BackgroundIt is Pepsi-Cola's policy to promote the utilization of eligibleM/WBE vendors in all aspects of the company's business.Toward that end, the company actively seeks out qualifiedM/WBEs for all possible company requirements; ensures thatM/WBEs fully comprehend the company's requirements andare thus able to bid appropriately; and makes every reason-able effort to help qualified M/WBEs meet company standards.

The M/WBE Program is a purchasing-focused supplier devel-opment operation. It does not focus on start-up or in-depthbusiness development support, but rather on expandingmutually beneficial relationships. In order to qualify, compa-nies must have an established record of business performancethrough a history of having provided products or service withtimeliness and reliability; have sufficient knowledge of theindustry to be cost competitive and offer added value; andhave staying power to persevere through the corporate buyingprocess to develop a long-term relationship. M/WBEs must beU.S. citizens from an African-American, Asian, NativeAmerican or Hispanic ethnic group; individuals or ownersmust have 51% or more interest in their company and musthave day-to-day involvement in managing the business.

In addition to working with M/WBEs, Pepsi-Cola encouragesits prime suppliers to support the M/WBE Program in theirutilization of minority-owned businesses, and has establishedreporting requirements to identify M/WBE Supplier Spendingin support of its business.

Program HighlightsTo participate in the M/WBE Program, companies must firstsend a letter of introduction along with a copy of their certifica-

tion from a Regional Minority Purchasing Council of theNational Minority Supplier Development Council (NMSDC). Orif the company is a woman-owned business, send their certifi-cation from the Women's Business Enterprise National Council(WBENC). The application is then reviewed for appropriateopportunities within the Pepsi-Cola organization. If opportuni-ties are identified, companies are scheduled for a directpresentation with the appropriate personnel. Pepsi-Cola'sM/WBE Department acts as the referral-support agent forM/WBE companies seeking to provide products or services.

In addition, there is financing available through the BusinessConsortium Fund, Inc. (BCF), a minority developmentcompany created by the NMSDC. It provides contract financ-ing to certified ethnic minority businesses through a networkof local participating banks and affiliated councils. Pepsi-Colais one of the founding members of the BCF.

In the case of its prime suppliers, Pepsi-Cola urges them topursue the following:• Target M/WBE purchases at a level of 5-10% of their

Pepsi-related revenue.• Provide specifications and take extra steps to make matches• Execute an aggressive program• Monitor progress/ensure success• Report to Pepsi-Cola on a quarterly basis.

Suppliers report on either the dollars spent with MBE or WBEOrganizations as a direct result of a Pepsi-Cola contract; orthe percentage of their total corporate MBE Spending equal tothe Pepsi-Cola’s contract revenues share of their TotalCorporate Revenues.

Additional Information/ResourcesMore information on the Pepsi-Cola Minority and WomenBusiness Program is available at http://www.pepsico.com.Click on Corporate Information and then Minority/WomenBusiness Enterprises Diversity Initiatives.

For additional information on the Business Consortium Fund,Inc. (BCF), please contact:

Marcial E. Robiou, President,Business Consortium Fund, Inc.305 Seventh Avenue, 20th Fl.,New York, NY 10001,Tel: 212.243.7360,Fax: 212.243.7647

Name of Program: Pepsi-Cola Minority and Women Business Program

D I V E R S I T Y S U P P L I E R P R O G R A M

Brief DescriptionCandy Bouquet proposes a public-private partnership tobuild jobs and hope in the nation's inner cities throughproposed legislation that would provide a tax write off forfranchisors that donated the initial franchise fee for the estab-lishment of new inner city franchisees.

Key Contact PersonMargaret McEntire, Owner/FounderCandy Bouquet International, Inc.423 East Third StreetLittle Rock, AR 72201Tel: (501) 375-9990Fax: (501) 375-9998E-mail: [email protected]

BackgroundOver the course of the past several years, the company hasbeen involved in a variety of community outreach effortsincluding Gen. Colin Powell's "Little Red Wagon" initiative,rainforest preservation in Brazil, etc. At a recent Inc.Magazine awards ceremony recognizing the company as the17th fastest-growing, privately held inner-city businesses inAmerica, founder Margaret McEntire met "Magic" Johnsonand learned of his efforts to locate Starbucks Restaurants ininner city areas as part of area revitalization efforts. Byadding the tax incentive concept to those efforts, Ms.McEntire felt that inner city redevelopment efforts could bemaximized at no additional cost to the taxpayer.

Program HighlightsWorking with Inc. Magazine and Harvard University'sInitiative for a Competitive Inner City (ICIC), Candy BouquetInternational Inc. is seeking to have legislation introduced inthe U.S. Congress that would provide a tax write off tofranchisors who donated their initial franchise fee to newlycreated franchisee business located in inner city areas. The

"Rebuild America from Within" Project involves a four-parteffort. It calls upon America's 5,000 franchisor companies todonate initial franchise fees for inner city franchisees; asksthe U.S. Small Business Administration to assist these newlycreated inner city franchises through its existing franchiseloan programs; seeks matching funds from trusts, foundationsand city and community economic development groupscommitted to inner city restoration and development; andseeks a commitment from the inner city franchiseesthemselves to make an equity commitment equal to a fourthof the cost of creating their franchises.

Candy Bouquet is currently planning on developing a lobbyeffort with members of the U.S. Congress, and is enlistingother IFA members in support of the concept through theIFA's Emerging Markets program.

Additional Information/Resources More information on Candy Bouquet International Inc. canbe found at http://www.candybouquet.com/.

Supporting this initiative is the Harvard Business School'sInitiative for a Competitive Inner City (ICIC), a national, not-for-profit organization whose mission is to spark newthinking about the business potential of inner cities, therebycreating jobs and wealth for inner-city residents.

Michael PorterChief Executive OfficerInitiative for a Competitive Inner City (ICIC)727 Atlantic Avenue, Suite 600Boston, MA 02111Tel: (617) 292-2363

Fax: (617) 292-2380Fax: [email protected] Site: http://www.icic.org/


OTHER DIVERSITY-RELATED ACTIVITIESOther member initiatives or programs designed to facilitate the expansion of franchise opportunities among minority populations.

17% of the respondents reported on "other" minority participation activities. Among some of the more interesting programsare the following:

Name of Program: Legislative Program to"Rebuild America From Within"


Brief DescriptionIn cooperation with it franchisees across the country, RonaldMcDonald House Charities (RMHC), Inc. provides matchingfunds for college scholarships for graduating Hispanic-American high school seniors to attend college.

Key ContactSusan KerrDirector, Ronald McDonald House Charities, Inc.One Kroc DriveOak Brook, IL 60523Tel: (630) 623-7070Fax: (630) 623-7488E-mail: [email protected]

Background InformationThe program was started in 1985 by McDonald's franchiseeRichard Castro in El Paso, Texas out of concern for the highnumber of Hispanic-American students that dropped out ofhigh school in his hometown and across the nation. Inresponse, he led the effort to create a scholarship programthat would serve as encouragement for young Hispanics tocomplete high school and support their efforts to continuetheir education. Castro rallied McDonald's Corporation andother Owner/Operators behind his cause and secured thesupport of Ronald McDonald House Charities to establish theRMHC/HACER (Hispanic American Commitment toEducational Resources) Scholarship Program. An initial fundof $97,000 served to launch the program, providing $1,000scholarships to high school seniors in various communities.

With the continued support of McDonald's Owner/Operatorsand the added support of many others, RMHC/HACER hasbecome the largest high school-to-college scholarshipprogram for Hispanic students and a nationally recognizedinstitution.

Program HighlightsEach year, local Chapters of Ronald McDonald HouseCharities, together with the local McDonald's franchisees inthe company's various markets, determine the amounts thatwill be pledged to the program, and Ronald McDonaldHouse Charities matches what the local Chapters raise, up toa maximum of $75,000 nationally. Some 40 of McDonald'sgeographic markets in the U.S. participate in theRMHC/HACER scholarship program.

To apply for RMHC/HACER scholarships, students must haveat least one parent of Hispanic origin, be eligible to enroll inand attend an accredited institution of higher learning in theUnited States, and reside in a participating market area. Mostscholarship awards are $1,000 and are designated for gradu-ating high school seniors, although some local programsaward different scholarship amounts.

Scholarship recipients are selected based on academicachievement, financial need, community involvement, andpersonal qualities and strengths. Recipients must enroll inand attend an accredited institution in the academic yearafter their selection and provide verification of enrollment.Scholarship funds are paid directly to the schools and nofunds are disbursed to students directly.

Since the program began in 1985, over 8,000 Hispanicstudents have received nearly $10 million dollars in scholar-ships to support their education. In the 2001-2002 academicyear, RMHC/HACER will award more than $1.5 million tosupport the education dreams of students in 40 markets inthe United States and Puerto Rico.

Additional Information/ResourcesIn addition to the RMHC/HACER scholarship program forHispanic-American students, Ronald McDonald HouseCharities also operates the RMHC/African American FutureAchievers Scholarship Program and the RMHC/ASIA (AsianStudents Increasing Achievement) Scholarship Program, bothof which have similar objectives. Additional information onall of these programs is available athttp://www.rmhc.com/charities/us/scholarships/index.html.

Name of Program:Ronald McDonald House Charities/HACERScholarship Program

O T H E R D I V E R S I T Y- R E L AT E D A C T I V I T I E S

Brief DescriptionThe college Recruitment Program recruits college graduatesto become assistant managers throughout the Six ContinentHotels.

Key Contact PersonAllison DurantSenior Corporate RecruiterSix Continents HotelsThree Ravinia Drive, Suite 2900Atlanta, GA 30346-2149Tel: (770) 604-2000Fax: (770) 604-2371E-mail: [email protected]

BackgroundThe College Recruiting initiative was started in Fall 2000based on the needs that hotels had for talented management.

Program HighlightsThe College Recruitment Program is driven by businessneeds. The program identifies institutions that offer hospital-ity programs and degrees. Minority institutions are includedin the recruiting schedule. Minority students are alsorecruited from other schools.

The program targets graduating seniors via on-campusrecruiting handled by a corporate recruiter plus field person-nel associated with a corresponding Six Continents property.At the discretion of the local property, the program mightalso include an internship component. The CollegeRecruitment Program produced 6 hires in Spring 2001, butwas suspended for the Fall 2001 semester due to economicconstraints resulting from the September 11 terrorist incident.

Additional Information/ResourcesMore information on Six Continents Hotels is available athttp://www.sixcontinentshotels.com.

Participating minority institutions in the College ScholarshipProgram include:

Grambling University

Dr. Egwe UdehDept. of Mgmt. & Mktg.P.O. Drawer 846Grambling, LA 71245

Frankie RavonDept. of Home Economics & HospitalityP.O. Box 1190Grambling, LA 71245

Bethune-Cookman CollegeClaudine McKee640 Dr. Mary McLeod Bethune Blvd.Daytona Beach, FL 32114-3099


Name of Program:

Six Continents Hotels College Recruitment Program



Brief DescriptionThe mission of the Minorities in Franchising (MIF) Committeeis to increase the number and success of minorities infranchising, including franchisors, franchisees, suppliers andemployees. As such, the goal of the Committee is to be aresource for the franchising community and to increase thevisibility of the IFA and its member companies within theminority community.

Key Contact PersonSonya Thorpe BrathwaiteDirector of Diversity & U.S. Emerging MarketsInternational Franchise Association1350 New York Avenue, NW Suite 900Washington, DC 20005-4709(p) 202-662-0784(f) 202628-0812email: [email protected]

Background InformationFrom its inception, the MIF Committee has been an advocatefor education and outreach activities that increase the aware-ness of franchising in minority communities. Over the years,the Committee has hosted educational conferences aroundthe country that bring together prospective minorityfranchisees, franchisors and lenders.

Starting in 2002, the Committee will expand the scope of itsinitiatives to reach more potential minority franchisees on asustained basis; to provide direct technical support to inter-ested candidates; and to help franchisors access communityorganizations that may be able to provide real estate, financ-ing and training to prospective minority franchisees in urbancommunities.

Program Highlights• Franchise Outreach Program – To create a grassroots

network of minority franchise representatives; establishstronger ties to the minority community; and increasethe number of minority recruitment efforts each year

• Technical Assistance Program – To provide a physicalplace where prospects can receive information and

guidance on evaluating, funding and running afranchised business

• College Seminar Series – To educate minority collegestudents on the wide range of franchising opportunitiesavailable to them and to provide exposure in the minor-ity market

• Community Development Corporation (CDC) Network– To help franchisors utilize the real estate, financing andtraining capabilities of NCCED members to increase thenumber and success of franchise units in urban areas

Additional ResourcesYou will be able to find more information on these and otherprograms as they become available on the IFA web site atwww.franchise.org beginning in March, 2002.

Name of Program:Minorities in Franchising Committee

®


Project Coordinator and EditorRichard S. Willard

PresidentManagement Resources International

9912 Silver Brook DriveRockville, Maryland 20850

Tel: (301) 340-6488Fax: (301) 340-7451

e-mail: [email protected] site: www.mgtresourcesintl.com


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