How to Survive Scrutiny: Auditing a Franchisor's Diversity Efforts

For franchisors, diverse communities in the US represent new markets and new opportunities for system expansion. In response to the growing recognition of the diversity of the nation, many franchisors are interested in attracting minority franchisees. A good place to start is understanding the legal context in which programs aimed at attracting minorities operate. For starters, franchisors should understand the differences and interplay between affirmative action, equal opportunity and diversity. The consideration of an individual's language ability is not per se racial or ethnic discrimination. With the increasing diversity within the US, a franchisor will have to continually meet the challenge of modifying their systems to keep pace with the changing demographics of the nation. However, before embarking on any initiative to diversify, franchisors should have clear understanding of the legal framework to minimize their potential exposure.