Choosing the wrong franchisee can quickly set your franchise’s growth back many years, cause irreparable damage to the brand’s reputation, create additional costs, and affect your bottom line and overall success.
As a result, many franchisors have begun using more sophisticated approaches when it comes to selecting the right operator for their franchise.
One tool that many franchisors have implemented as part of their screening process is personality and behavioural profiling through the use of personality tests and structured interviews.
This form of screening does have its benefits. It can provide insight into how your candidate carries themselves and whether they are able to effectively express their emotions. It highlights the inherent characteristics of franchisees and it can also help you better understand your candidate’s sociability and analytical skills.
It is important, however, that franchisors remember not to use personality and behavioural testing as their only selection resource as it does not uncover all of the information that is critical to making the best choice regarding your next franchisee.
It doesn’t tell you whether your candidate has been honest on their application, whether they are financially capable of maintaining the franchise and whether they will have the necessary ongoing financial ability. It also does not consider negative media associated with the franchisee or whether they have a history of delinquent payments, lawsuits, a criminal record or failed business ventures.
To overcome the limitations of personality and behavioural profiling, it is important to take a more thorough look at your franchisees using enhanced credit reports. These reports will provide the information you need to better predict your franchisee’s potential performance by better understanding their current situation and historical trends. The reports assist in evaluating an applicant’s overall credibility and character.
More specifically, an enhanced credit report will:
- Confirm your candidate’s assets and liabilities
- Provide personal background information that the candidate may not openly share with you throughout the interview process
- Verify banking relationships
- Uncover derogatory information, such as legal actions, criminality and negative media exposure
- Highlight any criminal activities
- Verify educational credentials, work history and professional accreditations
- Confirm current employment and income
- Verify the candidate’s application to ensure false information was not provided
At the end of the day, you want to feel confident that you have chosen the best possible applicant. To do this, you have to have a full understanding of their skills, personality and ability to maintain the franchise.
To be certain this happens, you want to opt for the best screening process possible, ensuring you have the most up-to date, relevant and valuable information. A Prospective Franchisee Financial Report can do just that.
To find out more about our Prospective Franchisee Report and how it can improve your selection process, download the brochure below or contact us today.