Alex Mendoza recently embarked on a franchise agreement with Einstein Bros. Bagels to open five locations within the next five years. As president of Addicting Food Concepts Operators Inc./Einstein Bros. Bagels in Orange County, California, he is just one of the growing number of Hispanics turning to franchising for business opportunities.

For him, franchising is the ideal format for launching a new business. “Franchises have a proven system,” he says. “Credibility is one of the main benefits.” He also sees franchising, versus independent restaurant ownership, as a more secure investment that allows more opportunities to find better locations.

But just because Mendoza saw being part of a larger brand as a safer move, he wasn’t sure which concept would fit his needs best. So he spent two years researching various chains before choosing Einstein Bros. Bagels. He was looking for specific attributes like nationwide name recognition, a medium-size investment, strong training and marketing support, and operating with family-friendly hours. Einstein Bros. met them all.

Kevin Kruse, vice president of franchise development for Einstein Noah Restaurant Group in Lakewood, Colorado, says he sees all these factors as attractive to both Hispanics and non-Hispanics alike. “Our brand is a lower investment versus some of the stand-alone restaurants out there,” he says. “From an investment prospective, it’s very reachable. It’s a way of reaching the American dream.”

According to the U.S. Census Bureau, the nation’s Hispanic population comprises 15.1 percent of the country’s population, and projections have that number doubling by 2050. As the Hispanic population grows, so, too, does the number of Hispanics looking for financial success, and for many the answer is coming in the form of franchise ownership.

A 2007 survey by The International Franchise Association (ifa) Educational Foundation titled Franchised Business Ownership reported that the percentage of franchises that were minority-owned (19.3 percent) was more than 6 percentage points higher than minority-owned non-franchised businesses (13.2 percent). Hispanics owned 5.8 percent of the franchises owned by minorities and 5.1 percent of non-franchised businesses.

“Franchises are already recognizing the value of Hispanic franchisees,” says Jim Valentino, president and chief operating officer for Tropical Smoothie Café in Destin, Florida. “You have to take minorities into consideration. The fastest-growing population in the United States is Hispanic.”

Quick-serves looking to tap into the growing demographic will be encouraged that the 2007 IFA Educational Foundation survey found that the highest concentration of minority-owned franchises was in the quick-serve restaurant industry. Within the industry, 20.2 percent of franchises are owned by minorities. And according to the report, these numbers are expected to increase after the 2007 Economic Census is published later this year.

Valentino advises chains interested in recruiting this pro-franchising group to market wisely. He plans to work with Tropical Smoothie Café’s area developers to create different marketing tools to target minority audiences. For instance, bypassing traditional mainstream advertising in favor of those geared specifically to the Hispanic community. “The key is using different vehicles to communicate with them, such as specific Spanish-speaking TV, radio, and print outlets that they find more fulfilling,” he says.

Other franchise brands already have specific programs in place to attract Hispanic franchisees. For instance, two years ago Domino’s Pizza established its Delivering the Dream program, which is designed to help potential minority franchisees become business owners. Last year, Burger King implemented an advertising campaign to showcase true stories of minority franchisees, suppliers, and employees in an effort to increase diversity. The “Real People, Real Success” ads featured testimonials by minorities who have found success with the company. In addition, Captain D’s maintains a veterans and minority franchise program that offers reduced licensing fees, deferred licensing fees, and other benefits.

Although he didn’t respond to a specific marketing initiative, Alonzo Soliz knew Tropical Smoothie Café was the right fit for him after visiting the chain as a customer. He had been researching franchisors for a while but still was looking when he strolled into Tropical Smoothie Café.