Before you embark on your exciting new journey into the...
The tried-and-true process of awarding your franchise
Potential franchisees share a host of commonalities. They’re entrepreneurial in sprit, emotional by nature and are motivated by a combination of independence while doing something they truly love. Potential franchisees buy for their reasons, and their reasons only.
As such, when it comes to awarding a franchise to a potential franchisee, the psychology of the process is of paramount importance. Any franchisor should count on a few tried-and-true traits to identify the perfect fit.
While there’s no such thing as a guarantee in selecting the right franchisee, franchisors can capitalize on a few qualities in one’s personality and character:
Intelligent and adaptable
It takes a certain level of intelligence to be the owner-operator of a franchise, especially in a turbulent environment that can fluctuate by the day. Ensure that any prospective franchisee has the capacity to learn from their experiences, and can make smart decisions with the well-being and health of the franchise in mind.
Obvious, perhaps, but qualifying a franchisee by their ability to pay all associated upfront fees and initial marketing costs is at the top of the list. Ensure potential candidates have sufficient funds to cover any unexpected expenditures, while making clear the financial support the franchise will provide.
Work ethic and commitment
Oftentimes, potential franchisees may underestimate the hours and grunt work required to open and operate a franchise. For those coming from a corporate, nine-to-five environment expecting more of the same, the perils of franchise ownership can be a rude awakening. However, those willing to put in the time and energy, franchise ownership can be highly rewarding.
Team oriented and trainable
Systems, processes and rules are the name of the game when it comes to operating a franchise, and those that embrace the franchise’s training methods give themselves a leg up when it comes to hiring, training and being part of their own team.
We like entrepreneurs … to a point
The entrepreneurial spirit is one that can and should be nurtured, and those that have an ambitious nature can make great franchisees. However, those that are very entrepreneurial often have difficulty in following the systems of the established franchise, and are convinced they “have a better way” to do things. These are the folks that can be especially frustrating for franchisors. When evaluating candidates, franchisors should ask qualifying questions that help to establish an entrepreneur’s wiliness to play by the rules, while still maintaining that tenacious quality that makes them tick and can help them be successful.
A fruitful endeavor
Maintaining brand integrity and driving growth are and should always be at the forefront when brands begin awarding franchises. In order to do so successfully, franchisors need to consider these tried-and-true traits in deciding whether the relationship will be mutually beneficial for both parties. It’s the brand and the concept that will suffer otherwise.
Robert Stidham is president of Franchise Dynamics, a full-service franchise sales outsourcing firm. Based in Chicago, Franchise Dynamics currently represents a number of emerging to large-sized franchisors in a wide variety of categories throughout the United States and worldwide.