Recruiting the best franchisee for your operation is critical to the success and reputation of your organization. You need to eliminate the risk of selecting the wrong candidate at every step of the way. As a franchisor, you have invested in developing a business model that will attract only the best franchisees and the steps taken in the selection process are essential to positive results.
Your preliminary interviews and behavioural profiling are solid tools and will provide you with a sense of whether or not the prospective franchisee has a good understanding of your organization’s goals and expectations as well as the experience they bring to managing one of your franchises.
Your ultimate objective is the protection of your Brand’s good reputation and that positive growth of the Brand is maintained and developed. The Prospective Franchisee Financial Screening Report will confirm your applicant’s financial stability, background, and history of any delinquent or criminal record, all of which are vital pieces of information when making such a significant business choice for your franchise operation.
The cost of implementing a good franchisee screening process is very low, especially when compared to the harm that could result from an ill-informed decision.
You should pay close attention to your Franchisee selection process to:
Protect your Brand’s reputation
Minimize Franchisee failure and turnover
Minimize exposure to legal liability for a franchisee’s wrongful conduct