“We should think about what we own in common not just what we keep apart.”
Jonathan Rowe, “The Vanishing Commons” published 2005 in Inequality Matters
At Change the Wealth, we believe everyone deserves the opportunity to build wealth. Our mission is to incubate and scale business solutions that create transformative wealth.
Wealth is a key indicator of a person’s path in life. Accumulated over time, it is a source of retirement income, protects against short term economic shocks, and provides security and social status for future generations. Those with more wealth have more income, higher education, and less sickness. They also live longer - sometimes as much as 20 years.
The problem is that far too many Americans have far too little wealth. In fact, 99% of the wealth in this country is owned by half the people, leaving only 1% for the other half. Disproportionately represented in this bottom half of wealth and growing in number, black and Hispanic communities are “consistently on the edge of financial insecurity”. As wealth is an inter-generational asset, the consequences of these losses will reverberate deeply in the lives of the children and grandchildren of today’s people of color.
America confronts two futures: one in which economic growth continues to widen the wealth gap between the rich and the poor, and another in which our nation works together to address inequalities. If we can achieve the latter, we will be equipped to meet the demands of globalization, technological change, and the transition to a green economy. If we cannot, we risk economic and political impacts such as slower GDP growth, reduced income mobility, greater household debt, political polarization, higher poverty rates, and increased risk of extremist and criminal behavior.
We believe the solution lies in the intersection of free enterprise and social responsibility. Our nonprofit is dedicated to supporting impactful, real world solutions to growing inequality in America.
Business ownership is a proven path to wealth, with the self-employed having net worth 4X that of the non-self employed. Particularly for black and brown people who are denied opportunities by employers and the job market, small businesses are often the only pathway to economic security and a job where their dignity remains intact. Even underserved business owners have greater net worth than non-business owners. Black and Hispanic business owners have been found to have net worths 10 times greater than their non-business owning peers.
Business ownership has great potential for addressing financial insecurity and economic inequality. However, it is not easy for a low to moderate income person of color to start a business today. Many are underrepresented as business owners. In 2019, white families had one of every three dollars of wealth as business equity while black and Hispanic families had one of every eight dollars. Many black and brown entrepreneurs who do start a business fail quickly often within the first two years due to: (1) lack of capital, (2) lack of knowledge, and (3) lack of support.
Entrepreneurship is risky, but there are ways to manage the inherent risk so the deck is stacked for success.
An undisputed leader in economic growth and empowerment, franchising is a proven path to achieving the American dream. It provides a replicable model for democratizing business ownership by building small businesses with paid employees. Franchise ownership and the jobs they create offer career progression and economic stability. Franchising is the country’s largest job training program, fostering highly skilled careers in a variety of industries.
Franchising creates jobs, but what about franchise ownership opportunities? Traditionally, criteria for ownership has been based on financial indicators such as net worth, bank account balance, and credit score. In 2023, the average cost to open a franchise was $89,310, and as high as $750,000. With 2019 net worths averaging $24,100 for black families, $36,050 for Hispanic families, and $189,100 for white families, it is obvious to see how franchise opportunities are unequally distributed across demographic groups.
The franchising industry stands apart in its ability to design a path ahead that can serve as an exemplar to other industries for how to navigate economic inclusion in the 21st century. Transforming the franchise model offers one of the best interventions for low income and disadvantaged workers to gain small business ownership, good paying jobs, professional development and training, more stable careers, strengthened retirement income, access to affordable health care, and generational wealth building.
To address this opportunity, our founders created a new and robust franchise model founded on wealth as a collective value. ”Impact Franchising” is the first of many business solutions to be championed by Change the Wealth.
With decades of experience in franchising and a firm conviction in its ability to fuel prosperity, our founders created “Impact Franchising” as a powerful equalizer to income and wealth disparity. It is a real world solution that provides low-barrier income growth and asset ownership opportunities to black and brown, low and middle income leaders. “Impact Franchising” is based on a model of business co-ownership, financial inclusion, and entrepreneurial results.
We start by identifying franchise partners that share our vision and meet our strict criteria. We are thoughtful and thorough with these decisions as these business relationships will span decades. It’s important to us that our franchise partners believe in the mission of Change the Wealth. We found this strategic alignment with our first franchise partner, but don’t take our word for it! Hear directly from them:
“The vision of Change the Wealth is innovative, inspiring, and truly impactful. It's an honor to be an early-stage partner in their journey and the initial results they've delivered are incredible. The speed at which they are able to operate and expand is amazing and points to even greater success in the future. I would not be at all surprised if Change the Wealth’s success serves as the model for many, many others to combine the power of philanthropy and franchising to change lives for the better.”
- Mark Montini, Chief Marketing Officer, Premium Service Brands
We recruit beneficiaries from low-income communities because we are confident that leadership ability has nothing to do with skin color or zip code.
Our primary beneficiaries are low and middle income, black and brown individuals with demonstrated leadership ability. They are “stuck” in the bottom 40th percentile of income and wealth, which means they earn $15-$18/hour and less than $42,000 a year. Typically, they have less than $5,000 net worth. They work multiple part and full time jobs just to survive, and are saddled with credit card debt. They are in a constant state of financial insecurity, preoccupied with the stress of daily life and meeting basic needs. Their social elevator is broken.
Our secondary beneficiaries share many of the same characteristics as our primary beneficiaries except that they may not possess leadership skills. These are our front line workers who have direct contact with the customer. Most have families they must support. They are stressed juggling work and family obligations, and they take their jobs seriously. Every dollar they earn goes to daily living expenses for them and their families. Many times working multiple part time jobs.
Change the Wealth impacts this group as well, although not to the same degree as our Operating Partners. We pay them higher than market wages - many experience a 10-30% increase in income when joining our impact businesses. Those who do exhibit leadership potential and a desire for business ownership are encouraged to apply to the Operating Partner Program. We invite them to shadow current Operating Partners so they can have a realistic preview of the day-to-day experience. If they are interested in the program, we consider them priority candidates for the next opportunity.
Don’t just take it from us! Here are some direct quotes from our beneficiaries:
“I’ve always had an entrepreneur’s mentality. I’ve always had the drive to be successful but unfortunately I’ve never had the funds to start a business so when this opportunity had came into my life I was ready to jump right into it…I feel I will be able to not only have that financial freedom I have always wished for but I will have time to see my parents instead of working two jobs constantly barely making it. All I need is the guidance and support to learn how to fully run a company.”
- Brittany W., Operating Partner 2023
“Change the Wealth is a huge growth opportunity that is going to teach me along the way and challenge me to grow professionally and financially. I always see business owners managing their business and for some reason they look like they've succeeded. They look like they're proud of what they became. And a lot of times I think that I want to be that person and I want to be successful and I want to be proud of creating something and managing something and being my own boss and just having that freedom.”
- Luis S., Operating Partner 2023
“With this program, I won’t be living paycheck to paycheck, and I will have almost no stress when it comes to finances. I’ll be able to save money to be able to invest. I will have a lot more financial freedom, which would be really nice. I would love to be able to do things like travel and help out my family and be able to give gifts to people, things like that, as well as be able to spoil myself as well. I want to be able to do that eventually.”
- Ebonnie S., Operating Partner 2023
Inclusive business ownership is a wealth building machine, and we intend to prove it.
A reimagined franchise model offers one of the best interventions for low income and disadvantaged workers to gain financial security. It provides realistic opportunities for small business ownership, good paying jobs, professional development and training, more stable careers, strengthened retirement income, access to affordable health care, and generational wealth building. By leveraging the scalability and success of franchising, Change the Wealth provides unlimited possibilities and promise for generating impact and building an economy that works for all Americans.
Our Operating Partner Program provides low-barrier, fully funded business ownership opportunities to black and brown, low and middle income entrepreneurs. The ultimate goal is to lift these aspiring but overlooked leaders from the bottom 40% of income and wealth to the top 20% over a 10 year period … a powerful equalizer to income and wealth inequality. In supporting these capable yet underestimated leaders, we pass a torch of opportunity to people who thought the American dream was meant for somebody else.
In the words of Supreme Court Justice Louis D. Brandeis, “We must make our choice. We may have democracy, or we may have wealth concentrated in the hands of a few, but we cannot have both.”
We can’t do it alone. Won’t you help us to Change the Wealth?