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Importance Of A Prospective Franchisee Financial Screening Report

  Sue McConnachie   |     Dec 12, 2017

Franchising is becoming a big part of Canada’s small business environment. Many entrepreneurs are either buying a franchise or franchising their own ideas or businesses. There are many advantages of being a franchisee, and perhaps the biggest one would be working in a business that already has a recognized brand.

 It is estimated by the Canadian Franchise Association that the Canadian franchise industry generates approximately $68 billion every year, and this industry will keep growing. When deciding to franchise your business, it is important to know that you need to protect your brand at all times. Finding the right franchisee is more difficult than you think, and when picking the right candidate, it is crucial to always think of protecting and developing good will for your brand.

A candidate could appear to be the ideal fit at first, but it is always important to try and uncover what they may not be revealing. A prospective franchisee screening report can help you make the right choice for your business. It will confirm your applicant’s financial stability, background, and history of any delinquent or criminal record. A screening process will tell you what you need to know about an applicant before letting them into the fold.

 Remember that a good owner can help grow your brand and business, but the wrong choice can also cause major damage to an established brand. You don’t want to be in the business of damage control and trying to rebuild your brand’s reputation. After all the time and effort you put into growing your business to the point of offering franchises, you will not want to select the wrong franchisee and have a negative result. 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.

 Here’s why you should pay close attention to your Franchisee selection process:

  • Minimize Franchisee failure and turnover
  • Minimize exposure to legal liability for a franchisee’s wrongful conduct
  • Reduce exposure to legal claims
  • Protect your brand
  • Help your Franchised business succeed

“ Financial and criminal background checks are an important part of Mary Brown’s screening process for our Franchise candidates. We have always received prompt and efficient service when requesting these reports and our experience with Quality Credit Reporting has always been a pleasant one.”

 - Joanne Fisher, Mary Brown's, Franchise Coordinator

 Prospective Franchisee reporting goes beyond standard procedures, revealing information that is not obtained during the structured interview or behavioral profiling process. It will reveal the applicant’s criminal history, credit history, any failed business ventures and many other things that cannot be found through a basic screening procedure.

 Franchisee screening can be a very time consuming and detailed task to execute, and many businesses do not have the expertise to acquire and consolidate the information. That’s why franchise systems are finding it is very beneficial to outsource this service.

 At Quality Credit Reporting, we specialize in in-depth franchisee screening solutions that offer important insights into the applicant selection process.

 To find out more, or to request a report, contact us today.

By Sue McConnachie

Quality Credit Reporting is North America’s premiere credit reporting agency, committed to providing unparalleled, high-quality reports and services.

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