Successful franchise operators qualify their franchises. If you’re looking to grow your franchise, you should also carefully select and approve new prospects.
Here are four questions to help you qualify franchise candidates.
1. Does the prospect have sufficient capital?
Capitalization and credit are crucial considerations when considering a new franchisee. Ask and verify each prospect’s net worth and credit score.
You want candidates with the funds to not only start the business but also operate it until it’s profitable. A franchise with sufficient capital will have the time to learn on the job and recover from any missteps.
2. Does the prospect have a keen work ethic?
Your new franchisee should be eager to put in the hours that new businesses demand. They should also be willing to take advantage of the franchise’s training opportunities.
Ask questions and start conversations that will draw out meaningful information about the candidate’s work ethic. Ask about hobbies and achievements. Examine the prospect’s way of life, outlook, and expectations.
3. How are the prospect’s people skills?
The best and most successful franchisees have stellar interpersonal skills. Your franchisee should know or be willing to learn how to lead by example, put people first, and seek and follow advice.
4. Does the candidate fit into your company’s values and culture?
You have found a financially ready prospect who also has an admirable work ethic. But how well does the candidate fit into the franchise’s values and culture?
Be clear about what you need in a franchisee. Think about the background you need, requisite professional certifications and licenses, and preferred personality type. Involve your management team when checking a prospect’s organization fit and cultural compatibility.
Ultimately, don’t disregard your gut feeling when screening potential franchisees. You need to consider how you get along with the prospect and whether your philosophies are the same.
Franchising is a reliable growth strategy. However, best rewards follow when the franchiser take time to determine if prospects are a good fit for the franchise system. Select and approve prospects with the requisite experience, capital, and passion.