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.
But, selecting the right franchisee isn’t just about reviewing an application and ensuring they have stable finances. You want to effectively screen your franchisees, using enhanced franchisee financial background reports, to help you make the best decision possible.
Ask yourself the following questions before you make a selection:
1. Has your candidate been truthful on their franchise application?
Honesty is the best policy, and believing that your candidates are being truthful is an admiral quality, but unfortunately not everyone is as scrupulous as we would like. That is why verifying information using enhanced screening methods is critical to your assessment. It will help you verify the reliability of the information you receive and uncover any negative information or media that may have otherwise remained hidden.
2. Is the individual financially capable to maintain the franchise?
Doing a financial analysis is part of most well-designed franchise application processes, but do you take the time to validate the information you receive on your applicant’s financial records?
Conducting a thorough review of your prospective franchisee’s financial situation not only ensures they can afford the upfront costs of owning one of your franchises, but can also expose patterns of financial hardship or an inability to meet obligations in a timely manner.
3. Has your applicant had other failed business ventures?
Failure isn’t something that most people would disclose, so it is understandable why prospective franchisees may leave these details out of their application. Unfortunately, knowing whether your applicant has failed business ventures and understanding why they failed, if they do exist, is critical to making the best decision possible.
Enhanced screening can reveal whether such ventures exist.
4. Does your applicant have a history of delinquent payments, legal actions, tax liens or judgments?
As mentioned before, knowing whether your franchisee is able to meet obligations in a timely matter is an important factor when selecting the right franchisee. By conducting a thorough background check you can discover whether or not there is a history of delinquent payments, legal actions, bankruptcy or judgments and tax liens.
5. Does your candidate have negative media or criminal records?
It’s all about brand reputation and the quickest way to tarnish the reputation you worked so hard to build is by choosing a franchisee that already has negative media, criminal records or is on a terrorist/fraud watch list. By opting for enhanced screening methods, you can increase the likelihood that this information is revealed.
For more information on how enhanced screening can help your franchise continue its success, or to obtain a report, contact us today.