May 25, 2025
Understanding a franchise’s upfront costs, business system, and financial performance are some critical factors to know before investing in such an enterprise.
A push to boost entrepreneurship in their communities, an appetite for self-employment, and a chance to perhaps bag more money are some factors why Black franchising is in demand.
Per this account. the International Franchise Association (IFA) declare Black franchise ownership has risen by 40% in the last 10 years. To boot, roughly 26% of franchises are owned by people of color, versus 17% of independent businesses usually.
Franchising can be fruitful for Black entrepreneurs. Those franchisees on average generate 2.2 times more in sales than Black-owned non-franchise businesses. Yet, potential franchise owners should be aware running such a business is not a cinch. The reality: Franchising can come with challenges and requires ample diligence from owners.
A leading national independent market research firm serving the franchise sector, Franchise Business Review (FBR) supplied BLACK ENTERPRISE the “Top 20 Franchises for Black Owners.” All the brands were on FBR’s annual Top 200 Franchises ranking earlier this year. FBR founder and CEO Eric Stites says the owner satisfaction data for these 20 were based solely on the Black franchisees within those brands.
The No. 1-ranked mobile shaved ice franchise, Kona Ice, has made great strides in cultivating a diverse and inclusive franchisee community, Stites declares. He disclosed Black franchisees recently rated the brand an impressive 93 on the Franchisee Satisfaction Index (FSI), which is 35% above FBR’s satisfaction benchmark for all franchise brands.
He added this high level of satisfaction underscores Kona Ice’s effectiveness in creating an environment where franchisees of diverse backgrounds can thrive.
Kona Ice Founder and CEO Tony Lamb stated when the barriers come down and the support shows up, ownership starts to look like everyone. . He shared 16% of franchisees that have joined Kona Ice over the past three years belong to the Black community.
“Affordable startup costs, in-place structured financing, and a franchise model that thrives outside the brick-and-mortar system remove traditional roadblocks. Add to that a culture built on mentorship, community giving, and franchisee-first support, and you’re not just creating small business owners, you’re building a movement that reflects the communities it serves.”
Stites stated that the new FBR franchisee satisfaction research was completed in May 2025. Some 1,240 franchise business owners that identify as Black or African American participated. He says the rankings were based on franchise companies that have the highest satisfaction among their Black owners out of over 370 franchise brands participating.
Overall, the list revealed franchises in numerous industries with a sizeable concentration on food, real estate, senior care, and business services/technology to name a few. Others represented include travel, child services, cleaning & maintenance, health & personal services.
“For anyone researching franchise business opportunities, satisfaction among current franchise owners is one of the most important factors to consider,” Stites says. “The brands that make are awards lists each year our some of the top franchise opportunities available today. And these 20 franchises in particular have the highest satisfaction among Black owners in the franchise industry.”
So, what good opportunities can the brands listed (see below) perhaps bring Black franchisees?
“Successful franchising is built on strong brands with solid business systems, training & support, and a proven business model,” said Stites. “The most successful franchise companies also treat their franchise owners as true business partners, and they do everything in their power to help these owners be successful. That’s a big part of the reason brands like Kona Ice, NextHome, and 360clean stand out among their Black franchisees.”
Based on FBR’s newest research, over 35,000 franchisees across nearly 350 leading franchise companies were analyzed, with about 4% Black-owned. According to Stites, after removing franchise brands with below-average satisfaction among Black franchise owners, FBR weighted satisfaction scores for more diverse brands based on total number and percentage of Black owners.
David Smith, IFA Director of Diversity Programs, shared via email some virtues franchising offers. Instead of reinventing the wheel, he says franchise owners benefit from proven business models, built-in customer recognition, and operational systems that can take years to develop on their own. As such, the established model reduces risk and allows entrepreneurs to avoid certain pitfalls because the franchisor has already tested and proven the model.
Simultaneously, Smith noted for Black business owners one of the biggest challenges can be accessing capital. Whether startup capital or operating capital, he says many Black business owners simply don’t know where to begin. He says the information gap inspired us (IFA) to establish educational programs like Pathways to Franchising.
In partnership with VetFran, Smith says the program ensures information is reaching diverse communities. “We provide direct educational information on franchise fundamentals, selecting the right brand, and accessing capital to start your journey. The IFA Foundation is eager to help build awareness about franchising and educate motivated individuals on how to be successful and build generational wealth through franchising.”
The IFA provides more support on diverse franchising at this site and here.
Ass well. potential franchisees should consider if they have the tenacity, the knack to manage people, and the ability to work with a franchisor among other qualities before taking the plunge.
Stites offered this advice: “Franchising offers a strong pathway to business owners for aspiring entrepreneurs, with the potential to build long-term, generational wealth. But it’s important to have realistic expectations of what business ownership is all about. Most franchise businesses—like any new business—require several years of hard work before they start to take off. Many franchisees tell us that building their franchise business was the hardest thing they’ve ever done.”
He added, “If you are willing to work hard and follow the proven systems that franchise companies offer, chances are very good you will be successful.
This list shows the investment range for the Top 20 Franchises for Black business owners.
Brand Minimum Investment Maximum Investment
Kona Ice $149,995 $189,300
NextHome $16,250 $220,345
360clean $22,000 $36,500
Cruise Planners $2,295 $23,465
The Learning Experience $685,799 $5,608,799
TeamLogic IT $106,865 $141,342
Wayback Burgers $209,000 $633,000
Dream Vacations-CruiseOne $2,590 $21,870
HomeWell Care Services $54,400 $234,900
i9 Sports $44,900 $69,900
Tropical Smoothie Cafe $300,000 $720,500
Visiting Angels Senior Care $125,460 $171,150
Any Lab Test Now $166,900 $293,900
Wingstop $347,600 $759,100
Right at Home $92,100 $165,309
Fish Window Cleaning Services $105,300 $170,000
Express Employment Professionals $132,000 $213,000
Oasis Senior Advisors $64,890 $109,590
Senior Helpers $149,000 $201,000
Culver’s $2,254,000 $7,228,000
Sources for the entire report include www.FranchiseBusinessReview.com and BLACK ENTERPRISE research.
