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.
Franchising is an excellent way to grow your company, but if done incorrectly, can have detrimental effects on your brand, your business and your bottom line. The Covid-19 pandemic has made financial screening for the prospective franchisees even more vital, in a time of economic instability, as the search for new franchisees to replace failed franchises begins.
Taking the time to thoroughly screen your franchisee candidates is critical to any franchisor’s success. Without a comprehensive screening process, you will quickly see your resources move from business growth and planning, to quality control, dispute management, and perhaps even litigation.
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.
Selecting the right candidates to represent your brand is critical to your operation’s ongoing success. These franchisees will be the face of your company and you need to trust that they will maintain your brand image.
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.
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.