Finding franchisees is the easy bit. Finding the right franchisees isn’t. If and when you’re trying to grow your business via franchising it’s vital to make good, well-considered choices about who you recruit. Nigel Toplis elaborates.
It’s far better to aim for slow and steady expansion with a strong and capable franchise network, than to rush ahead simply by recruiting people who can afford the fee.
Just because they have the money doesn’t make them potentially good franchisees.
Misguided decisions can cost you, especially in the early days and will quickly stall your plans for expansion, as well as draining your energy and potentially damaging your brand.
In short, if they aren’t the right fit for your brand and your existing network, then don’t recruit them.
Who/what makes a good franchisee?
There is no simple list of ‘ideal franchisee’ traits.
However, just as every franchisor is different every prospective franchisee brings different skills and characteristics. It’s about finding people who have the right attitude and aptitude to work with your business, with yourself, with the other franchisees, with the franchise system and have the ambition, desire and hard work to make a go of it.
Try to avoid the following three ‘types’ of prospective franchisee
The entrepreneur – I’m not knocking entrepreneurialism per se, but in a franchisee it can be disastrous. You want people who will take your business idea and run with it, not reinvent it. It’s OK for people to add their own twist or focus, but what you really need is people with an enterprising spirit, not entrepreneurial flair.
The ‘get rich quick’ mentality – Franchisees should expect to make good money. But it’s important that they understand, and value, that success takes time, effort and dedication. Franchising is a very effective route to a secure income and a chance to be their own boss. It is a long-term investment of their working years, not an easy way to becoming a millionaire.
The shirker – Anyone who takes on a franchise needs to be prepared to roll up their sleeves, especially in the early years. Owning a business doesn’t mean endless rounds of golf while your team gets on with the real work. Yes, as the franchise grows there will be opportunities to delegate and the owner’s role will evolve. But franchisees must be prepared to put in the hard work up front.
With that in mind recruiting the right franchisee isn’t full proof – at the end of the day it’s a judgement call. However, there are processes that make the evaluation process more thorough and hopefully lead to successful recruitment.
List the qualities you value – as you would if you were posting a job.
Distinguish ‘essential’ from ‘desirable’ or ‘nice to have’; and whilst no one will meet all your criteria someone who only ticks half the boxes, but brings bags of energy and enthusiasm, could be more successful than someone who looks good on paper but has a weak work ethic. Therefore, think about personal characteristics as well as experience and skills.
Hence, if your franchisees need to be outgoing and build relationships through networking, you need to prioritise good interpersonal/communication skills.
Consider behaviour
A prospective franchisee might say all the right things and have lots of relevant qualities on the face of it BUT can you work with them? Will others want to work with them? Look at how they treat and interact with other people. What’s their attitude like when they talk to the receptionist? Do they readily engage with your existing franchisees? Are they likely to build good, strong working relationships with customers, suppliers and future employees?
Have they done their homework?
Any serious franchisee will check out several options so ask which other franchises they’ve considered, and if they’ve had active discussions already. If they’ve already discounted other franchise opportunities, ask why.
It’s also worth finding out if they’ve done any research on the sector you operate in or sought advice from the BFA.
Good franchisees are proactive self-starters, so look for evidence of this and determine whether they’ve done any legwork before coming to you.
Do they have a good support network?
As with any new business, setting up a franchise is hard work. There will be difficult periods as they adjust to a new way of working, and it can take time to generate a profit and whilst your support is important family support is critical.
NOTE: I discovered only when a franchisee was struggling that their spouse never wanted them to go into business on their own and took no part or interest in the business. TRAGIC!
To my spouse I thee give
The bond between a franchisor and franchisee is like a marriage. Both parties bring different qualities to the table, and over the years, with mutual respect and effort, the relationship can flourish if it’s a two-way street.
Think how your model benefits franchisees. Is it fair, and is it geared up to get them off to the best possible start? How extensive is your training? Do you help them get to grips with finance, sales and marketing? What about longer-term growth and development? How do you expect the network and your franchisees to evolve over the coming five to ten years?
To attract high-calibre franchisees, you need to be confident that you’re offering them a supportive start and excellent prospects. Explain how you will set them up for success and help them build an achievable vision for their future.
Just as you are looking for certain characteristics, skills and commitment in the franchisee so should they be analysing your commitment, your support and your work ethic.
As with marriage you need to ‘court’ the franchisee, else, just when you think you’ve found a franchisee that fits, you may find they’ve decided to invest their efforts elsewhere.
