The Covid-19 pandemic has made financial screening for the prospective franchisees even more vital in a time of economic stability, the search begins for franchisees for new locations and to replace failed franchises. Taking the time to thoroughly screen your prospective franchisees is more critical than ever, as the economy has suffered a significant financial blow.
The last thing you want to do is select the wrong franchisee – someone who will negatively affect your brand image, resource management, and ultimately your success.
The problem is that the world of franchising is always changing and it is becoming harder and harder to determine which franchisee applicant will have the greatest likelihood of success.
While standard database reports offer information regarding your applicant’s background, they are often just a snapshot of the information that is available to you.
Going beyond the standard background check procedures, a comprehensive Franchisee Screening Solution will offer more in-depth and up-to-date information. This will allow you to make better decisions about who you want to represent your brand.
More specifically, an enhanced franchisee financial report will provide:
- Confirmation of assets, including bank account balances, investments, business interests, and ownership in real property
- Confirmation of liabilities, including credit card balances, mortgages, term loans, lines of credit, and leases
- Confirmation of personal background details, including legal name, current address, and social insurance number
- Validation of banking relationships and respective account balances
- Disclosure of derogatory credit information, including late payments, NSFs, collection claims, legal actions, judgments, and bankruptcies/consumer proposals
- Disclosure of criminal activity or negative media exposure, including a nationwide search of the Canadian Police Information Centre (CPIC) database for information concerning records of conviction or pending charges for which the candidate has not been pardoned
- Verification of current employment, including start date, position, and salary
- Confirmation of education credentials
- Verification of professional accreditation status, including current standing, date of designation and any disciplinary actions
- Identification of false information provided on franchise application
- Review of their media profile, including the monitoring of full-text news, business sources, blogs extracted from major Canadian dailies and newswires, regional community papers, and TV and radio transcriptions
Once this information is collected, it will be presented clearly and concisely, allowing you to draw valuable conclusions with ease.
By investing in an enhanced due diligence process, you can benefit from better franchisee selection, decreased costs associated with legal liabilities, dispute resolution and problem-solving, minimized turnover and franchisee failure. The result is increased success and profitability.
At Quality Credit Reporting, we specialize in in-depth franchisee screening solutions that offer important insights into the application selection process.
To find out more, or to request a report, contact us today.