The LFA Promises to Become a Game Changer in Franchising by Attracting More Hispanic Entrepreneurs

The Latino Franchise Association (LFA) was established in 2022 by entrepreneur Rafael Alvarez to spread awareness about Franchising to the Hispanic community. With a mission of being the “go-to” organization for Latinos in franchising, LFA offers resources to help business owners succeed and hosts events like Franquicias Fest, a large-scale franchise trade show, conference and workshop.

Education is an important part of LFA’s mission. Alvarez wants people to know that Latinos are passionate business owners and have the buying power to elevate franchising. With two decades of experience in franchising, he’s seen how entrepreneurial Latinos have benefited from the franchise business model and wants to increase the percentage of Latino-owned franchises, which is less than 1%, he says.

Here, LFA executives and members discuss the organization’s groundbreaking mission and the importance of Latinos in franchising.

Latino Franchise Association Executives 

Rafael Alvarez, Founder and CEO

The LFA will become a game changer in franchising by bringing thousands of Latinos into this industry.

Please share your background in small business and franchising.

I have been in business for over 35 years and franchising for about 20 years. I opened my first tax preparation office in 1986 with $200, two computers and a fax machine in Washington Heights in Northern Manhattan. In 2005, I decided to take my business to the next level utilizing the franchise business model. In 2007, I established the first Latino-owned franchise in the tax preparation, bookkeeping and payroll industry called ATAX. On July 15, 2019, John Hewitt, the former CEO and founder of Jackson Hewitt and Liberty Tax, became my partner to take ATAX to another level. The goal was to create the largest Latino-owned company in the U.S. in terms of the number of locations. By 2021, we sold about 1,000 new territories throughout the U.S. Currently, I am the founder & CEO of Latinx Franchise Brands, Inc., the only boutique franchise brand developer in the U.S., focusing 100% on the Latino Market. We already launched two brands and have 16 more brands in development. Our goal is to launch 100 Latino-owned franchise brands within the next ten years.

What do you see as the most important mission of the LFA?

The most important mission of the LFA is to educate and promote the franchise business model within the Latino community nationwide. The goal is to connect Latinos with the franchise ecosystem (franchisor, franchisee, suppliers and entrepreneurs) to inspire many of them to invest in franchising by buying a franchise or perhaps converting and launching their successful business into a franchise brand.

What was your biggest takeaway from Franquicias Fest?

Some of the biggest takeaways were:

• Seeing the tremendous amount of support that we received from the stakeholders in franchising. 
• A fantastic lineup of speakers. 
• The education component was the best thing that we did.
• Latinos are hungry for knowledge about franchising.
• Franchisors and suppliers want to connect with the Latino community.
• Latinos are now understanding the tremendous value proposition that franchising can provide.  

Anything else to add about Latinos in franchising?

I believe that this is the right time for Latinos to embrace franchising. We have 63 million Latinos in the U.S., and according to Mr. Sol Trujillo, the Co-Founder and Chairman of the Board of The Latino Donor Collaborative and the organizer of L’attitude Conference, in his 2023 LDC U.S. Latino GDP Report released on September 27, 2023, said that “Latino Gross Domestic Product (GDP) is $3.2 trillion, and the Latino Purchasing Power (LPP) is an impressive $3.4 trillion. If U.S. Latinos were a country, they would be the 5th largest economy in the world, only ranking behind the U.S., China, Germany, and Japan.

U.S. Latinos are not a niche market, nor small, nor as sometimes described as a market of the future. It is already the third fastest-growing economy on the planet and may soon rival China’s growth rates. The growth trajectory of the Latino economy is remarkable, as over the past decade, Latino annualized income growth has outpaced non-Latinos by a significant margin, with a 4.7% increase compared to 1.9%. This pattern is not limited to income growth; Latino consumption and purchasing power have been growing 2.1x to 2.4x faster than non-Latinos. From 2011 to 2021 U.S. Latinos were responsible for 20.9% of the real GDP growth in the United States. U.S. Latinos are leading the growth of our country’s GDP, entrepreneurship, consumption, innovation, productivity, and labor force. That is why I believe investing in this cohort is investing in the present and future of all Americans.” 

The challenge for the LFA is to convert this tremendous economic power to franchising. Latinos own less than 1% of all the franchise brands in the U.S. The percentage of Latino franchisees is very low in relation to the 20% population of Latinos in the U.S. The LFA will become a game changer in franchising by bringing thousands of Latinos into this industry. This will help the total franchise ecosystem.

Moisés Pérez, President

Latinos engaged in franchising represent a cohort of unsung American heroes.

Please share your background in small business and franchising.

Having dedicated over three decades to a distinguished career in the nonprofit sector, where I played a pivotal role in launching some of New York City’s most iconic nonprofits, my focus has shifted significantly in the last decade toward small business development.

My multifaceted involvement includes:

• Serving as a strategic advisor to prominent business organizations, such as the National Bodegueros Association, the Dominican American Chamber of Commerce, the Dominican Dental Society of New York, and the Association of Independent Cable Producers, among others.
• Co-founding the Institute for Youth Entrepreneurship in Harlem, USA.
• Co-founding Somos Community Care, where we orchestrated the establishment of the largest network of private medical practitioners and neighborhood-based medical offices.

My contributions have been recognized with prestigious awards, including the Ellis Island Medal of Honor, the Presidential Medal of Honor from the President of the Dominican Republic, the Distinguished Alumnus Medal from Brooklyn College (presented during commencement by Senator Chuck Schumer), the Points of Light Foundation’s Daily Points of Light Award (presented by President George Bush), and accolades for Excellence in Program Development from the Institute for Youth Entrepreneurship.

What do you see as the most important mission of LFA?

The paramount mission of the LFA revolves around enhancing access to capital. Within this context, it is imperative to recognize that the Latino community’s full participation in the franchising landscape hinges on our ability to address the challenges associated with securing capital. Devoid of adequate financial resources, the entrepreneurial journey remains stymied, and the broader community’s economic development inevitably falters.

What was your biggest takeaway from Franquicias Fest?

My biggest takeaway was the resounding enthusiasm exhibited by its participants. The palpable eagerness to acquire knowledge and actively engage in meaningful dialogues underscores the burgeoning momentum of franchising within the Latino community.

Anything else to add about Latinos in franchising?

Latinos engaged in franchising represent a cohort of unsung American heroes. These individuals rely on the support of friends and personal savings to fuel their entrepreneurial endeavors, making invaluable contributions to the American economy, often without the recognition they richly deserve. Their journeys, rife with trials, tribulations, and ultimately, triumphs, have finally found a fitting platform in the LFA, ensuring that their narratives are no longer left untold.

Richard Santos, Marketing Director and Chief Technology Officer

Franchising is a great opportunity not only for Latino business owners, but for all Latinos.

Please share your background in small business and franchising.

I’ve been helping small businesses and franchise owners with marketing and technology for over 16 years. This includes social media management, online advertising, video promotion and print/digital graphic design. 

What do you see as the most important mission of LFA?

To educate the Latino community about franchising. One of our goals is to show successful Latino business owners that franchising is the next step in scaling and growing their business nationally. And not only show them but also provide the knowledge, experience and resources to take advantage of what the franchising business model offers. 

What was your biggest takeaway from Franquicias Fest?

Learning more about franchising, networking and making history because Franquicias Fest is one of the first Latino expos in franchising. 

Anything else to add about Latinos in franchising?

Franchising is a great opportunity not only for Latino business owners, but for all Latinos. We can create jobs and help Latinos provide for their families. I would like to encourage everybody in the franchise industry to support the LFA by becoming a member and participating in all the activities and events. This is a win-win for everyone in franchising.

Latino Franchise Association Members

Tim Conn, Founder and President of Image One Facility Solutions 

There is often job creation within the Latino community because Latino franchisees hire from within their community.  

Why did you join LFA?

We joined LFA so that our Latino franchise owners would benefit from the association.  

How does your organization empower Latinos?

Image One is a great opportunity for Latinos to operate a franchise through the established framework. There is often job creation within the Latino community because Latino franchisees hire from within their community.  

What do you see as the most important mission of LFA?

As new members, we are just beginning to learn of the benefits of LFA, but I think a key part of their mission is to help promote and expand franchising in the Latino community.  

Anything else to add about Latinos in franchising?

We have many Latino franchisees in the Image One family and work with them to achieve their dreams and goals. For some, it is being a first-time home buyer; for others, it is paying for their children’s college; and for others, it is creating a better and more fulfilling lifestyle not only for themselves but those that they are able to employ.

Tom Miskowski, CEO of Kitchen Solvers

I’m looking forward to getting closer to the LFA and attending future shows.

Why did you join LFA?

We are always looking for ways to connect our brand with potential buyers, and this is an exciting new way to do that.

How does your organization empower Latinos?

Kitchen Solvers currently has several Latino franchise partners. 

Anything else to add about Latinos in franchising?

I’m looking forward to getting closer to the LFA and attending future shows.

Jason Steele, President of Franchise Growth and Development for Movita Juice Bar Franchise Corp.

LFA brings awareness to the Latino community about the benefits of franchising and how to be your own boss.

Why did you join LFA?

LFA brings awareness to the Latino community about the benefits of franchising and how to be your own boss. The economy would benefit from more Latinos in the franchise space. I would like always to respect and support any organization that teaches and educates others in business.

How does your organization empower Latinos?

We are founded by two Latinos who wanted to make a difference not only in the Latino community but also in the health sector. We will also support in any way possible.

What do you see as the most important mission of LFA?

Educating and bringing concepts to the community that otherwise they may not have heard of. 

Anything else to add about Latinos in franchising?

Movita Juice Bar will strive to grow our concept and support the Latino franchisees.

Hispanic Heritage Month

To honor the Latino community’s contributions to the U.S. economy and American culture, Hispanic Heritage Month is celebrated from September 15 – October 15. Despite the low percentage of Hispanic-owned franchise businesses, these enterprises generate 1.6 times more sales and employ 1.5 times more people per location than their independent counterparts, according to a report from a study by Oxford Economics and the International Franchise Association.