Women In Franchising

More needs to be done to support female franchisees

Women should be flocking to franchising. Self-employment is an obvious answer to the need for flexible work that can be fitted around caring responsibilities. Women are also said to be more risk averse than men, so a franchise, with a proven business model, should be an obvious choice.

However, the long-term steady rise in women franchisees seems to have suddenly stalled.

Unexpected dip

The latest NatWest/British Franchise Association franchise survey, released earlier this year, showed an unexpected dip in the numbers of women franchisees. Comparative figures show that in 2005 20 per cent of overall franchisees were female. By 2011 the figure had increased to 28 per cent and there were high hopes of increasing it still further. However, in 2015 the proportion of female franchises had gone down to 23 per cent.

Meanwhile, the number of new franchisee recruits who are female also fell. In 2005 just 16 per cent of newly recruited franchisees were women. By 2011 the figure had soared to 38 per cent, perhaps partly boosted by women setting up in business as a way to generate extra income to counteract the effect of the recession on family incomes. Or, more positively, because the promotion of franchising to women was at last hitting home.

However, in 2015 the proportion of new franchisees who were female fell back again to just 17 per cent - only a tiny increase on the 2005 figure.

So what’s going on? Why are the numbers of women in franchising falling?

Pip Wilkins, the first ever female chief executive of the British Franchise Association, says: “We were surprised at the figures and are trying to find out why the number of women franchisees and new recruits shows a decline.”

It may simply be a glitch caused by the way the data is gathered. Pip says the methods used to count women are being re-examined: “It could be that there is a hidden increase in women in franchising because more women are joining their male partners and husbands in franchised businesses, where the man has already been counted as the franchisee.”

It would be surprising if the number of women franchisees were dropping, she adds, pointing out: “We know the numbers of women franchisees are increasing in the USA and UK franchise trends often follow the USA’s lead.”

Pip also suggests that the number of women employed in franchises is likely to be growing, given the overall growth in care services franchises, where the majority of carers employed are women. This resulting increase in awareness about franchising among these women may lead some to become franchisees.

A man’s world

Decades ago, franchising was seen as a man’s world, which may have deterred women recruits, but in recent years franchising has made it clear that women are welcome and there are many high flying female role models.

The bfa has had a sustained campaign to encourage more women into franchising and has held regular women in franchising events for the last two years. There are presentations by successful women franchisees and female business leaders, plus networking opportunities. The bfa also celebrates women franchisees in its annual awards.

Commenting on the latest bfa figures, Sarah Carlile of franchise recruitment marketing specialist Coconut Creatives, who is also co-chair of Encouraging Women into Franchising, says: “EWIF was originally formed to help increase the numbers of women in franchising and give women a forum and a support network to become franchisees, franchise their own businesses or attract more women to their franchise networks.”

EWIF has not seen any drop-off in interest. Sarah says: “Our network has grown and we have so many members who are willing to share their guidance and advice on a regular basis, often free of charge.”

It seems sometimes women don’t fully recognise their own success. Sarah says: “We hold an annual Women in Franchising awards ceremony because we found so many women don’t even realise how great their achievements are, because for them it’s just part of what they do every day.”

The awards also make a good marketing opportunity - valuable for women who might otherwise be somewhat reluctant to blow their own trumpet. 

Sarah says: “They give added credibility to the work our members do and make sure their efforts don’t go unnoticed by their clients, customers, employers and the rest of the industry.”

EWIF’s annual national conference allows women to network and discuss their ideas. “We believe networking and gaining advice is a great way to help even more women get into franchising or push their businesses to the next level,” Sarah says.

Warm welcome

Meanwhile, individual franchisors make it clear they welcome approaches from women seeking to become franchisees.

Lynne Lister, director at X-Press Legal Services, says: “Almost 60 per cent of our network is female and half our X-Press award winners are women. Women seem especially suited to franchising - they work hard and can lead and be team players simultaneously. We welcome interest from ambitious, hardworking women and men. Gender is irrelevant to success.”

So given the warm welcome women can expect in the franchise world, why have numbers of female franchisees and new recruits declined?

At present it’s not clear. There are underlying issues, such as the fact women are less likely than men to start up a business, franchise or otherwise. National labour force survey figures show that in 2008 women accounted for 17 per cent of business owners/managers/employers. However, between 2008 and 2011 women accounted for an unprecedented 80 per cent of the new self-employed, according to the 2015 labour force survey.

Given women now account for 17 per cent of new recruits to franchising, which mirrors the figures for overall female start-ups in 2008, could it be the great increase in female franchisees was the glitch, rather than the most recent decrease? It could be that we have now returned to the norm.

Whatever the reason for the figures, it’s clear women are still underrepresented in franchising. More work needs to be done.