The idea developed as the men partnered on commercial developments in communities including Compton and Santa Ana. In order to sustain long-term growth, you have to have that business ownership take place. The initiative comes at a time when national franchisers are trying to diversify their franchisee ranks as a way to capture minority spending power and expand into untapped minority neighborhoods. Franchising can be a relatively low-risk entry to entrepreneurship because the franchiser provides benefits such as name recognition, bulk buying rates and advertising. But whether franchising is the best path to business ownership is a matter of debate.
Franchisees give up varying degrees of control over business operations to the corporate parent.
And minority franchisees have filed lawsuits across the country alleging they were prevented from operating in nonminority neighborhoods. Still, supporters of LINC say the initiative is an innovative plan to help bridge the wealth divide in minority communities. There are more than 20,000 franchised units of 7-Eleven in the United States and Canada, and the company is working to expand into minority neighborhoods. The Hispanic community has been overlooked. LINC is negotiating similar deals with half a dozen other franchisers, Mulder said.