The Sky's the Limit

Unlike other industries there is no glass ceiling for women when it comes to franchising. Indeed women very often fare better in franchising than men.

While no official figures exist, the number of Irish women entering the franchise industry is definitely on the increase. Indeed it reflects of the overall increase in the number of female entrepreneurs in Ireland over the past few years.  In the UK, however, research suggests that around 11% of all franchisees are women while 45% of all franchises were owned jointly by men and women or husband and wife teams. In the USA, meanwhile, it is reckoned that as many one third of all franchises are owned by women.

Women go into franchising for a myriad of reasons.  They may be seeking greater financial independence and increased control over their own destinies. They may want to spread their entrepreneurial wings and make a go of something they genuinely believe in. They may have hit the proverbial glass ceiling at work and they want out of the corporate rat race by doing something more fulfilling- financially and emotionally- for themselves and their family. Or they may be returning to the workforce, having had a career break or having raised their families.

According to the Irish Franchise Association, the umbrella body for Ireland's thriving franchise sector, the future success of the industry will be linked to the availability of  a strong pool female entrepreneurial talent entering the sector. "The Irish Franchise Association urges its members to make use of the obvious female talent bank in the market place to ensure the continued growth of this vital sector of the economy," says Michael Bradley, chief executive of the Association.

"Franchisors' criteria for franchisee selection include experience in marketing or sales but the most important criterion is to have a hard-working and self-motivated attitude. Women possess these key skills just as much as men and often are more people oriented and better at money management, making them good prospects to start their own businesses as franchisees. The banks, I know, are also keen to support more women in franchising," says Bradley.

According to Orna Stokes, who heads up Ulster Bank's franchising unit, "more and more women are entering franchising and this is a trend that is mirrored in other countries."

She points out that women can very often make better franchisees than men and their whole approach to going into business in the first place differs from their male colleagues. "I think it's fair to say that women probably ask different types of questions than men do. I think men are probably a little more gung ho when it comes to making key decisions. They see the bigger picture whereas women are more inclined to sit down and think about the small print and precisely what it all means for themselves, their family, their home and their lifestyle. They tend to be a lot more careful when making big decisions than men.

"Women are also more inclusive when it comes to making decisions and they come at the initial research in a different way," she says.

As franchising can be quite inflexible, women are more likely to accept this and get on with it she says. "Women are more likely to recognise that a franchise does exactly what it says on the tin and generally they would be better when it comes to following the rules. This is what franchisors want. "

Given the enormous choice of franchises available to would-be franchisees, Orna Stokes says that it's a fair assumption that when women do make a decision to go into franchising they go for industries they know or like. "I think women tend to go for franchises that suit their personalities and personal or business interests. If they are foodies they tend to go for food related franchises like an O'Brien's whereas if they are analytical they can go for an ActionCoach or Kendlebell franchise. But I would say that there are certain franchises that women are more suited to but it's more to do with ability rather than gender."

Choosing the right franchise is obviously the most important step in spreading one's entrepreneurial wings. Far too often people choose franchises that are not suitable and their dreams and aspirations end up in tatters. In some cases they end up losing all the money they have invested. This is where proper research comes in. A good starting point is the Irish Franchise Association which has a large number of members operating in a wide range of sectors. While all the main banks lend to the franchise sector (typically they will ask you to come up with 30% of the cost) both Ulster Bank and Bank of Ireland have dedicated franchise units that understand franchising inside out. Both banks are only two willing discuss franchise opportunities with new or existing customers.  In addition there is a large number of franchise related websites and magazines that profile some of the many opportunities that are available.  

First published in Franchise Options Magazine Summer 2008© to order back issues please call + 00353 1 6611660