How to Attract Diverse Owners

The old fixes aren't enough. To diversify franchising's ranks, we need to start rethinking big parts of the business

- ALEXANDER MIRZA

The franchising industry is actively recruiting more diverse owners and managers, but the numbers show how far we have to go. According to recent data, 67.2% of franchise owners and 67.5% of franchise managers are white.

So what's stalling progress? Among the problems, underrepresented communities receive less information about franchising opportunities and because franchise ownership isn't as deeply rooted there, it can take longer to build relationships. There's also the capital gap, as people of color often start out with an economic disadvantage. But having built and advised franchise businesses across industries for over 25 years, I believe it's a solvable problem.

As a double immigrant (I moved from India to Canada, then from Canada to the U.S.), I'm now the founder of MogulRecruiter, a technology company that aims to drive diversity and meritocracy in the hotel industry. By 2020, roughly 81% of branded hotels were franchised operations, so the industry is a telling microcosm of franchising at large. My company gathers data on diversity in the hotel industry, and I've identified three key patterns that can help our industry diversify.