You are only as strong as your weakest link. When it come to selecting a franchisee, this couldn’t be any more true. The people you have representing your brand make it what it is, which means their success is critical to your success.
But what does a successful franchisee look like?
With so many applicants, it can be easy to lose focus and forget what the ideal candidate should look like. To help you on your way, here are four fundamental things you seek for in a franchisee.
1 - They Believe in Your Brand
You’re about to partner with the face of your brand and as such, you need to ensure that the person will properly represent you. Not only must they have the personality and abilities required to do the job, they have to believe in what you are offering and how you do it.
Passionate people are successful and the more passion your franchisees have for their business, the more successful they will be. Ensure your franchisee understands your brand, your values and what makes your offering so special to help guarantee their success.
2 - They Have to Be an Expert
Food, automotive service, retail – whatever your franchise operation may be, it is important that your candidates have experience in your industry. Consider their resume and skills to determine whether they will have what it takes to optimize your business.
Knowledge is power, so having expertise in your industry is critical – it means that they will better understand the challenges, opportunities and experiences they are about to encounter.
3 - They Must Have Access to Resources
To operate a successful franchise, they need to have access to the required resources. While you play a substantial role in that process with respect to sourcing vendors, accessing materials and providing support, your franchisee will be responsible for finding a location and the people to run it.
Ensuring your candidate has access to and the ability to acquire the necessary real estate and human capital is critical to opening a successful franchise. Asking your candidate about their plan and seeing how far ahead they have looked can be important when determining whether a franchisee is ready for what they are signing up for.
4 - They Have to Be Financially Secure
Money isn’t all that matters in life, but when it comes to operating a successful franchise, it is critical to success. Being certain that your candidates have access to funds, financial stability and a commitment to their investment is a top priority for long term success.
These are just some of the many criteria to consider when searching for the right franchisee. Your specific needs will be dependent on your franchise system and your experiences with current and past franchisees.
One thing that is absolutely important to remember, no matter what your final candidate looks like, is thorough due diligence.
Once you have determined what will make your franchisee successful and they have provided evidence to support their ability to meet these requirements, you need to verify the information.
While standard database reports will provide you with some of the information, investing in enhanced screening will be what makes the difference. Enhanced screening can help you draw more sophisticated conclusions about your franchisee by not only reviewing their financial past present and future, but by also providing a bigger picture in relation to your franchisee’s character and reputation.
Have they been honest throughout the application process? Do they have strong references? Do they have a history of stability? Is there negative media associated with them? Have they had failed business ventures? Do they have a criminal record?
These are just some of the many questions that a Prospective Franchisee Report will answer.
For more information on selecting the right franchisee and how a Quality Credit Report can help you, contact us today!