The summer of 2021 will be remembered universally for a devastating pandemic, but in franchise circles it will be noted as the summer that advanced university-level franchise education.
Courses about franchising have been taught for years internationally. Countless colleges and universities offer professional education classes about how to buy a franchise, or how to franchise a business; numerous universities offer for-credit, online or in-classroom courses that introduce and explore franchising. For many years, franchise research centers have existed at universities in New Hampshire and Atlanta. Northwood University in Michigan offers a major in franchising. Thousands of students internationally complete franchise coursework and graduate with knowledge about franchising.
However, most of those graduates do not go to work in franchising, and many do not plan to become employees. Of the graduates with knowledge about franchising, some are likely to become franchisees if not franchisors.
The number of university graduates who could get a job in franchising pales in comparison to the number of job opportunities generated by the franchise community. Most everyone in franchising seems to agree that the franchise community has not done a good job of educating its future employees. “Franchising provides opportunities to the next generation that other business models cannot – the opportunity to be your own boss with the support and backing of some of the world’s most trusted and established brands,” said Matthew Haller, president and CEO of the International Franchise Association.
“We know that the franchising industry has some of the best and brightest minds in the world, and it’s critical that we share the good news about the model with young people so franchising can continue to provide an avenue for individuals to build knowledge, generational wealth, and growth and vitality in their local communities.”
An educational gap
Franchisors especially complain that it’s nearly impossible to hire graduates with expertise in franchising. “We can find great graduates to hire,” said Ray Titus, founder and CEO of United Franchise Group in Florida, “but when they don’t have franchise knowledge, we have to teach them about franchising ourselves, and that slows down our productivity. We prefer graduates who can help us build our franchise businesses from day one on the job.”
Never one to wait for someone else to solve a problem, Titus visited a small university near his headquarters – one from which one of his sons and several employees had already graduated – and pledged $1.5m if the university established a center to teach undergraduates, and eventually MBAs, about franchising.
And that’s how the Titus Center for Franchising was born in 2017 at Palm Beach Atlantic University in West Palm Beach, Florida. Currently, there are approximately 50 students studying franchising at PBA.
Hands-on curriculum
The Titus Center curriculum, which offers students a Concentration in Franchising, includes three academic courses about franchising and an internship with a franchise company. Students earn the concentration in addition to a degree in business with marketing and management the most popular majors.
Since the first students graduated in 2018, a half dozen have gone to work at United Franchise Group or for UFG franchisees. Another half dozen graduates are working for other franchise companies, mostly in Florida. Several others have become franchisees and one student partnered with Titus to create a new franchise brand.
But even 50 graduates annually wouldn’t be enough to satisfy the demand for entry level franchise employees even among just Florida franchisors and franchisees. In the U.S.A. alone, franchising employs more than 8.3 million people. This year, more than 26,000 new franchise businesses will open in the U.S.A. creating opportunities for another 800,000 new jobs!
“Most everyone in franchising seems to agree that the franchise community has not done a good job of educating its future employees”
Granted, most of those jobs will be for lower-skilled workers in retail, food and service industries and they won’t require college degrees or an education in franchising. But as franchising continues to expand the demand for franchise educated employees will continue to increase.
“Franchising continues to evolve with more categories and complexities than ever before,” noted Dr. Ben Litalien, CFE, instructor/advisor for the Georgetown University Franchise Management Certificate Program. “This should stimulate more demand for education about franchising, especially with Millennials engaging in franchising at a record pace.”
Setting a trend
Perhaps inspired by Titus, and by their own employment demands, other franchisors have recently entered the franchise education business. Earlier in the summer, YUM! Brands, Inc., announced its Unlocking Opportunities Initiative that includes a $100m commitment to provide education worldwide.
The initiative includes the establishment of the Yum! Center for Global Franchise Excellence at the University of Louisville. The center will provide existing and potential franchisees multiple levels of online education.
“In addition,” according to a news release, “the center will focus on recruiting and educating underrepresented people of color and women on the possibilities of franchising as a pathway to entrepreneurship.”
“Having the education in the franchise model is the first step to success not only for aspiring franchisees, but for everyone in the industry,” explains YUM! center director Dr. Kathleen Gosser, CFE. “Franchise education has only recently been elevated to higher education institutions; it is now gaining momentum, which is a positive for the entire industry.”
The summer momentum then led to an announcement by Babson College, near Boston, Massachusetts, establishing the Tariq Farid Franchise Institute. Farid is founder and CEO of Edible Brands.
The institute will create programming that combines business and entrepreneurial expertise with franchising expertise to “advance students’ understanding of franchising and the opportunities it can create.” Farid said, “It’s exciting to see that more and more universities understand the critical role that franchising plays in the economy and are expanding their business curricula to include franchising.”
“Having the education in the franchise model is the first step to success not only for aspiring franchisees, but for everyone in the industry”
In August, the University of Tennessee announced plans to partner with franchisor Shelly Sun, founder and CEO of BrightStar Care, to establish a franchising initiative. Plans include offering an undergraduate certificate program and courses for graduates as well.
“I believe it’s incredibly important to educate the next generation about franchising because reaching our future leaders early in their professional development is how the franchise industry will continue to thrive,” commented Sun.
She said she’s making it her duty to share her passion with future entrepreneurs by establishing a franchising programming at her alma mater. “I have committed to a multiyear grant to increase the number of franchise programs at the university.” Her goal, she explained, is “to engage graduate students by developing a franchise-focused graduate school program and a financial investment incubator to assist students in launching their own franchise business ideas with a large focus on elevating BIPOC and women.”
This commitment to franchise education will enhance the future of franchising by making it easier not only to recruit franchise-savvy graduates into the workforce but by enlightening more people about the opportunities in franchising. It will be interesting to watch this momentum continue across the world
The author
Dr. John P. Hayes, CFE, is the Titus Chair for Franchise Leadership and director of the Titus Center for Franchising at Palm Beach Atlantic University in West Palm Beach, Florida
