How to Include Diversity in the Franchise Recruiting Process

Franchising is becoming an increasingly popular way to find financial freedom and build generational wealth, providing an entrepreneurial opportunity that potential owners would be unable to achieve without the support of the franchisor. However, as franchisors continue to grow their systems, it is crucial that diversity plays a part in their franchise recruiting efforts.

“Diversity within the corporate organization is key,” said Tarji Carter, founder and president of The Franchise Player. “Aspiring franchisees want to look out into an audience and see themselves reflected. When that doesn’t happen, it can be a little deflating. Both in franchising and the larger corporate world, there needs to be more diversity at all levels.”

Carter went on to explain that while the more traditional understanding of diversity, which focuses heavily on race and gender, is important, there are other factors to consider. A person’s marital status, whether they have children or not, sexual orientation and ethnicity also inform the ways in which they experience the world, allowing them to bring a unique perspective to the table.

Why Diversity Pushes Matter

Cultivating more diversity across a franchise network can be incredibly helpful to the network’s growth and continued success.

“Statistics have shown time and time again that the more diverse an organization is, there’s a greater impact on revenues,” she said. “In my experience, I’ve seen a lot of diversity at the store level. I have seen a lot of diversity at the unit level and in accounting, but that’s pretty much it. There needs to be diversity, not just of color and sex, but diversity of thought. That’s what it’s all about. We want to bring folks together that can complement one another by bringing forth their different cultural experiences and views and adding to the collective vision.”

While this is a strong driver for many leaders looking to embrace diversity, the motivations behind efforts to embrace diversity need to be pure. It’s easy to tell when they’re not. Building a network of franchise professionals that empowers all kinds of people is valuable to local and professional communities, regardless of the revenue impacts.

“I think it starts at the top; it’s a culture that needs to be created,” said Carter. “There has to be buy-in from the top, or else we’re all just talking to each other. If it’s not a priority, then it’s not. One thing you can’t do is to say diversity is a priority and then not do anything about it. People are watching, and there’s a line between commitment and action. That’s very important.”

How To Conduct a Genuine Effort

Diversity efforts do not necessarily hamper franchise development, but they may require a pivot in strategy. For franchisors who have been laser-focused on simply checking boxes and meeting development quotas, recruiting more diverse groups will require far more connection and relationship building. 

There are ways to “embrace diversity” while still leaning on old practices. Rather than setting goals to recruit 10 new women franchisees or promote three Black employees to leadership positions, franchisors should focus on approaching each interaction with an open mind and a willingness to connect.

“I think it really goes back to building relationships and being genuine,” Carter said. “As a salesperson for any specific franchise organization, there’s a business sales cycle. There are goals tied to that sales cycle that are also tied to bonuses and incentives. And sometimes, there are individuals making decisions and goals who have never been in a sales position. They just want to know where the deal is.”

Branching Out

In order to change the recruitment results, the process will need to change, too. One of the easiest ways to do this is to branch out, building relationships in new spaces and working to truly connect with new groups of people.

An important aspect of this approach is that franchisors must incorporate themselves into the communities and organizations before trying to sell. By building a strong relationship first, the franchisor can cultivate trust and get to know the people they are working with which will lead to better long-term results in terms of franchise development.

“There are the traditional trade shows that everyone goes to,” she explained. “All of the brands go to the same trade shows and see the same people. It takes really figuring out what audience you want to bring in. Who are you targeting? Are there conferences, trade shows or events that we can attend and have a presence? The recruitment doesn’t come off as predatory if, in fact, the organization is involved with that particular group or association. Having a presence and developing relationships is extremely important.”

In addition to attending the IFA’s Annual Convention or the Multi-Unit Franchising Conference in hopes of picking out diverse recruits, franchisors could consider building relationships with organizations like the National Black MBA Association, National Association of Women Business Owners or 100 Black Men of America. Once the relationship is built and the members of the organization see the franchisor as a true supporter, that relationship can continue to grow and evolve — sometimes in a way that leads to franchise development.

Representation Matters

“If you can see it, you can be it” is, in some ways, overused. Nevertheless, at its root, it’s true. The challenges associated with recruiting diverse franchise professionals can go back as far as young adults’ high school experiences. 

“You think about all of the high school students that are employed by franchise organizations at the unit level,” Carter said. “Having information at that level about ownership possibilities could not just provide hope but could also help to define a clear path to success for someone who may not know that ownership is something they could aspire to.”

Keeping that information front and center can provide guidance and information that is otherwise not widespread. 

“I never saw anyone that looked like me who owned a franchise,” she explained. “I didn’t learn about franchising until I started working as a sales manager for Carvel Ice Cream in 2008. And many of my friends and relatives didn’t know about franchising until I started working in the industry. Representation matters. There needs to be more diversity throughout the franchise life cycle, starting from recruitment up to the C-Suite, including sales, development, real estate, construction, training and operations. Having representation within these different disciplines goes back to diversity of thought, which fosters inclusivity, internally and externally. Brands that are truly committed to diversity understand the importance of reflecting the communities they serve.”