As a franchisor, you will typically ask for your candidate to complete and submit a credit application after your earlier screening procedures have been finished. The information you are provided should be detailed and accurate, supplying you with every piece that was requested. It is critical that you be able to pinpoint the areas of greatest significance in order to make your final decision about the prospective franchisee an informed one.
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.
The success of your franchise depends on a number of factors, one of the most important being the people that represent your brand.
You don’t just want your customers to have a great experience, you want them to enjoy the same high-quality customer service no matter which franchise they enter, and that means you need reliable, professional and dependable franchisees representing your brand.
IMPROVE THE QUALITY OF SELECTION
The results of the criminal background check will tell you if your prospective employee, franchisee or dealer operator has been honest in their discussions with you. A critical indicator of overall character and integrity will be on full display if inaccuracies or outright lies are uncovered.
Background checks confirm misstatements and fabrications made by candidates, often leading to disqualification from a job, franchise or dealership – you want honesty, integrity and good character representing your brand.
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?
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.
Choosing the right candidate to operate your new franchise can be difficult and time consuming, but taking the time to do it right can offer a number of benefits. This could include reduced turnover and disputes as well as improved brand image and better allocation of resources.
To assist you with your selection process, here are four steps to help ensure the best decision regarding new franchisees is made at the outset.
“Franchising is also an established business model: the majority (62 per cent) of franchises are established brands that have been operating in Canada for at least 11 years, and 30 percent of franchises have been operating for more than 25 years. Franchisees also have a record of success, with 50 per cent of franchisees having a tenure of more than 10 years with the same franchise brand.” Canadian Franchise Association’s Advocacy Survey, 2017.
According to the National Automotive Dealer’s Association (NADA), a record 17.5 million new vehicles were purchased by customers through 16,708 authorized dealerships in 2016. In Canada, new vehicle sales reached record numbers for the fifth consecutive year in 2017, and Canada saw its first 2 million vehicle year.
These numbers are staggering and demonstrate the health, and growth potential, of the automotive sector in North America.
“The auto sector is experiencing immense growth, as evidenced by dealer revenues exceeding $120 billion last year alone,” said John white, President and Chief Executive Office of CADA (Canadian Automotive Dealer’s Association).
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.