A) Have one/many already B) I’m providing the service myself while we are small C) Business what…? Your growth as a franchisor (units and royalty) is completely dependent on the profitability and happiness of your franchise owners. I made the mistake of building a passive support culture and it was a mountain of work to turn it into a proactive environment. Because of it, we attracted zees that wanted a Zor that was hands off and they never asked for help. They grew slower… Passive support may feel nice, since we all have lots to do, but it’s really the wrong way to build a franchise and will cause more problems as you grow. Be proactive, put resources in place as soon as you can, advertise that you are highly active in their business and you will attract individuals that want to participate in your support mechanisms. More work up front means more money, more free time, and a smoother journey in building YOUR business long run!

When a franchisor awards a new franchise location, one of the most important steps in the process is the execution of the Franchise Agreement. This document defines the legal relationship between the franchisor and the franchisee and outlines the rights, responsibilities, and obligations of both parties. Because the franchise agreement is a legally binding contract that governs the operation of the franchise business, it must be executed by the appropriate parties with proper authority. Understanding who must sign a franchise agreement is essential for both franchisors and franchisees. The structure of the signing parties can vary depending on the ownership entity, the franchisor’s requirements, and the regulatory framework governing franchising. In most cases, several parties are involved in the execution of a franchise agreement, including the franchisee entity, the franchisor, and individual owners who may be required to provide personal guarantees. This article explains who is typically required to execute a franchise agreement and the roles each party plays in completing the franchise transaction. The Franchisee Entity In most modern franchise systems, the franchisee is not an individual person but a business entity, typically a limited liability company (LLC), corporation, or partnership. The franchisee entity is the legal party that will operate the franchise business and hold the franchise rights granted by the franchisor. Why Franchises Are Often Owned by Entities Many franchise systems require franchisees to form a separate business entity before signing the franchise agreement. This structure provides several advantages, including: • Liability protection for the owner• Clear separation between personal and business finances• Easier accounting and tax reporting• Flexibility for ownership structures involving multiple partners For example, if an entrepreneur named John Smith is opening a franchise restaurant, he may form Smith Restaurant Group, LLC to own and operate the franchise location. In that case, the franchise agreement would be executed by Smith Restaurant Group, LLC, not by John Smith personally.

I’m Kelsey, founder of Bloomin’ Blinds. 85 owners, 160 territories. Huge fan of FMS. Ask me anything! Always willing to help a Zor!

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