Diversity in franchising is no longer just a social initiative or brand value—it is a strategic growth advantage. Franchise systems that intentionally attract and support diverse, talented, and multi-dimensional franchise owners tend to outperform peers in market penetration, community relevance, unit resilience, and long-term system health. Yet many franchisors struggle not with intent, but with execution: how to actually increase diversity, how to avoid tokenism, and how to sustain inclusion beyond the initial sale. True diversity in franchising requires a full-system approach—from how opportunities are marketed, to how franchisees are selected, financed, trained, supported, and promoted within the system over time. This article breaks down how to build diversity into your franchise system intentionally, how to attract high-quality diverse owners, and how to maintain and scale diversity without compromising standards or performance. Why Diversity Matters in Franchising (Beyond Optics) Franchise owners are not just operators—they are: - local brand ambassadors - employers and community leaders - decision-makers who shape unit culture and performance A diverse franchisee base brings: - local market insight across demographics and neighborhoods - cultural fluency in underserved or emerging markets - resilience and creativity born from varied life and business experiences - broader recruitment pipelines for staff and management In practical terms, diversity helps franchise brands: - expand into new territories more credibly - improve unit-level performance in diverse communities - reduce concentration risk (economic, geographic, demographic) - strengthen brand trust and relevance However, diversity does not happen by accident. It must be designed into the franchise system. Step 1: Redefine What “Qualified Franchisee” Means One of the biggest barriers to diversity is an unintentionally narrow definition of “qualified franchisee.” Many systems over-index on:

Selecting the right commercial real estate is one of the most critical decisions you will make when opening a franchise business. Even the strongest franchise brands can struggle in the wrong location, while a well-chosen site can dramatically improve performance, brand visibility, and long-term value. Franchisees must balance franchisor requirements, market dynamics, financial feasibility, and long-term growth potential when evaluating a location. This article outlines a comprehensive, step-by-step process to evaluate commercial real estate for a franchise business location, helping franchise investors reduce risk and position their business for success. Step 1: Understand the Franchisor’s Real Estate Criteria Before evaluating any property, you must fully understand the franchisor’s real estate and site selection requirements. Most franchisors provide detailed criteria covering: - preferred trade areas - minimum population and income thresholds - visibility and access requirements - traffic counts and co-tenancy preferences - parking ratios - square footage range and layout requirements - zoning and use restrictions Many franchise agreements require franchisor approval of the site and lease before execution. Evaluating properties that don’t meet brand standards can waste time and money. Action step: Review the Franchise Disclosure Document (FDD) and operations manual sections related to site selection and real estate approval. Learn more about evaluating commercial real estate Step 2: Analyze the Local Market and Trade Area A strong site starts with a strong market. Market analysis should focus on the primary trade area, not just the city as a whole. Key factors to evaluate include: - population density and growth trends - median household income - age demographics relevant to the concept - daytime population (workers, students, tourists) - competitor locations and saturation levels - consumer behavior patterns

For Opening a New Franchise or Restaurant Location This checklist covers each stage from site approval through opening day, ensuring that the franchisee and franchisor remain aligned, compliant, and on schedule. SECTION 1 — Pre-Construction Phase ✔ Site Approval & Due Diligence - ☐ Submit site for franchisor approval - ☐ Conduct demographic & traffic analysis - ☐ Verify zoning and permitted use - ☐ Conduct site walk with franchisor representative - ☐ Confirm visibility, access, and parking - ☐ Obtain landlord approval for franchise use - ☐ Evaluate nearby competitors - ☐ Conduct environmental assessments (if required) ✔ Lease Negotiation & Signing - ☐ Review LOI (Letter of Intent) - ☐ Negotiate lease terms with franchisor input - ☐ Confirm rent, CAM charges, TI allowances - ☐ Sign lease with required franchise addenda - ☐ Submit final executed lease to franchisor ✔ Architectural & Engineering Planning - ☐ Obtain franchisor-approved architects/designers - ☐ Prepare architectural drawings - ☐ Mechanical, electrical, plumbing (MEP) plans - ☐ Seating layout & workflow optimization - ☐ Submit drawings for franchisor approval - ☐ Receive architectural review feedback - ☐ Apply for building permits SECTION 2 — Vendor & Contractor Selection ✔ Contractor Bidding Process - ☐ Request bids from approved general contractors - ☐ Conduct walkthroughs for estimate accuracy - ☐ Evaluate timelines, budget, references - ☐ Confirm contractor insurance & licensing - ☐ Select and finalize general contractor ✔ Equipment & Vendor Coordination - ☐ Franchise-required equipment list provided - ☐ Obtain quotes from approved vendors - ☐ Order kitchen equipment (POS, refrigeration, ovens, etc.) - ☐ Order signage (interior/exterior) - ☐ Confirm lead times and delivery schedule - ☐ Coordinate installation timeline with contractor SECTION 3 — Permits & Regulatory Requirements ✔ Permits & Approvals - ☐ Submit building permit application - ☐ Submit signage permit application - ☐ Apply for health department approval - ☐ Apply for fire suppression approval - ☐ Apply for liquor license (if applicable) - ☐ ADA compliance review - ☐ Grease trap and ventilation approval (restaurants)

A franchise system is only as strong as the success of its franchisees. The onboarding phase is the most pivotal stage in the franchisor–franchisee relationship because it establishes expectations, builds trust, and sets the foundation for operational excellence. A structured, well-managed onboarding program increases franchisee performance, supports brand consistency, reduces early-stage risk, and ensures the franchisee has the confidence and capability to execute the system. Below is a detailed look at the onboarding lifecycle and the franchisor’s role in creating long-term value for the franchisee. SECTION 1 — The Franchisee Onboarding Timeline Although each franchise brand differs, a standard onboarding process includes the following phases: 1. Signing the Franchise Agreement Once the franchise agreement is signed and fees are paid, onboarding begins immediately. At this moment, the franchisee needs clear guidance on: - What happens next - Key dates and milestones - Support personnel contact information - Timelines for site selection, training, and opening A Welcome Package should be sent within 24–48 hours. As the Franchisor, we want people to feel the love, engagement and complete support we offer them. They invested in a franchise to get your time and access to your knowledge. 2. Welcome Package & Orientation This package typically includes: - Brand Story & Culture Overview - Organizational chart with dedicated support contacts - Onboarding checklist - Franchise Operations Manual access - Technology setup instructions - Required vendor lists - Introductory marketing materials - Access to the franchisee portal or LMS (We recommend Trainual) See what the Bread and Vine Franchise model has done for support and management of new franchisees. (Check video attachment) A kickoff onboarding call is recommended to review expectations and answer early questions. 3. Site Selection & Real Estate Development The franchisor usually provides: - Demographic analysis - Territory mapping - Broker resources - Location approval standards - Lease negotiation assistance - Guidelines for zoning/business licensing