As a franchisor, your success is dependent upon the success of your franchisees. It’s natural to constantly explore the question, “what does my perfect franchisee look like?” As an experienced franchisor, you already know that having the required capital is hardly an indication that someone is fit for your business.
After nearly 40 years advising and making more than 2,000 franchisors stronger, Francorp has developed a profile for a “good franchisee” that in most situations franchisors have found to be pretty spot on.
True of most job interviews, you’re looking for someone with likability. Someone you’d be willing to work with on a day-to-day basis and someone, for example, that you’d hire to manage one of your own franchise locations. But just because you really like someone, doesn’t mean you should be any less rigid in the process of reviewing them.
Leadership, sales and people skills are a must for any business owner and the same is true for owner-operators within a franchise system. But how many franchisees out there have had these skills and were still not able to succeed?
Get detailed and get personal when reviewing franchisee prospects. Here are some other key qualities and traits you should be looking for:
1. Require school transcripts. The age-old debate: Does GPA matter or not? Francorp says yes. You are looking for the “A” students. “A” students are often people who have also worked in structured environments for long periods of time. They are comfortable following rules and regulations and able to meet deadlines. They’ve often stayed with the same company(s) for at least three to four years and have received promotions during that time. These people are not the “wing it” type, and they also won’t be so far on the entrepreneurial side that they try to put their own stamp on everything. You already have a stamp, you want smart people who can replicate it.
2. Do a background and credit check. This may seem like a no-brainer, but some franchisors are choosing to skip this crucial and telling step. If your candidate breaks laws, has substance abuse issues or has an issue with late and missed payments, chances are the issues may follow them into your franchise system. You want someone who can represent your brand in a positive light and someone who will pay royalties on time.
3. What other interests are listed on their resume? People active outside of work, whether it be with their community, church or volunteer projects, often make great candidates because they have connections and have a go-getter personality that will represent your brand well.
4.The personal questions. What is this person’s family life like? Of course not always, but in many cases, people who have been married for a long time, for example, make great candidates. The ability not only to tackle business challenges, but to navigate and withstand the ups and downs of a long-term personal relationship, says a lot about a person.
5. Do they plan to be present? You are not looking for an absentee owner. This adds extra expense to the daily operations and diminishes the drive and motivation of a true owner-operator.
With these five steps during the review process, you’re likely to end up with a franchise candidate ready for the challenge of helping you grow your franchise, while making his or her own dreams come true.
Something to keep in mind if you’re specifically targeting multi-unit or sub-franchisors is that they will be a bit different from individual franchise owners and thus the process of reviewing them will require some adjustment. In addition to the above tips, you’ll be looking for candidates who are affluent and highly experienced in business.