We recently discovered a unique “Diversity Ownership Program” in The UPS Store disclosure document.
If you look at the overview of this program, you see that:
First-time purchasers of The UPS Store franchise who are members of an “Underserved Group” are eligible to pay a $14,950 Initial Franchise Fee for their first Center (reduced from $29,950)
So, basically, you are paying half price, a discount of almost $15k, if you are in an underserved group. This sounds great, right? Helping people who need it get into business for themselves is commendable. Many franchises today offer discounts for certain groups, and I support that 100%.
If we look a bit further, we see that those who are considered underserved by The UPS Store must come from the following groups:
Asian, Black, Hispanic, Native American or from the LGBTQ+ community. LGBTQ+ is further described as "people who identify as lesbian, gay, bisexual, transgender, queer/questioning
and others who identify as same/similar gender attracted and/or transgender"
So most of these groups are self-explanatory, although most people don't know what "Asian" actually means; we'll look at that in a minute, but let's look at the orientation prerequisite first. "Queer Questioning" as you probably guessed it means you are on the fence about which team to bat for. If that is you - you save $15K on your franchise fee. I'm genuinely curious as to how this franchise vets people who are questioning. I would assume they don't ask for proof, I assume they simply go on the word of the buyer. My question is what is stopping anyone from claiming they are still questioning their gender position and taking the $15k discount. And if straights are able to bend the truth does this not take away from actual LGBTQ people who are the intended recipients? This seems like a big loophole But I do understand the intent of the program, as data suggests the LGBTQ group as a whole does earn less than straights even though it has glaring loopholes.
But according to The UPS Store, the next underserved group is Asians. According to the US Census Bureau, Asians' Median Household income is far higher than all other races, at $98k. Whites are only at $76k. Hispanics and Blacks show a lower average, so it makes sense to me why they would be included. But as shown on this chart, only one group doesn't get any discounts.
No, many others also don't get a discount you say. Keep in mind there are 51 countries considered Asian, it's not just Japan or China. Cambodia, India, Korea, Malaysia, Pakistan, Thailand, Vietnam, all of these are Asian countries. If we pull up an ethnic chart of household income - look at how many Asian groups earn more than the average!
So a millionaire or billionaire from any of these countries, simply by virtue of where they were born and their skin color, receives a $15k discount on their franchise fee. A disadvantaged person who maybe grew up in a shack in the US Appalachians, fought addictions, and worked 14-hour days in a factory for decades, saving and scrimping to try and better themselves, no discount simply because of the color of their skin and sex orientation. But the Burmese millionaire gets a $15k discount. This program is entirely based on immutable characteristics that you didn't choose and cannot change.
I understand companies' desire to be inclusive and to help groups that have historically struggled. But more and more companies seem to equate that drive with helping anyone and everyone except one group. Now, I would never buy a The UPS Store franchise, so this doesn't affect me, but I would absolutely understand the feelings of a person who grew up in poverty being denied a helping hand simply because of the color of their skin.
And I also understand that while Asians as a group enjoy significant business ownership, there are also struggling Asians that could benefit from this program. But are there not also multi-millionaire blacks and Hispanics? Of course. If the true intention of the program is to help people who are struggling get a leg up, is the best way really to base it on skin color or gender preference? And I am open to hearing arguments for or against.
And in the case of many corporations, and I am not suggesting The UPS Store franchise specifically, simply use these programs as a selling tool to make your group feel warm and fuzzy while they sell you a crappy franchise. We did a video on how veterans are being ripped off Ill post the link above. Many corporations, in reality, could care less about helping they just want to virtue signal and pad the pockets of shareholders. I heard a really great quote from Scott Galloway stating if we do have programs based on color, it should be green - the rich should pay more, and the poor should get a hand up regardless of their orientation or skin color.
@FranchiseCityOnline
