FlagFranchise is a recruitment tool designed to help franchisors be more effective in their recruitment process through a program that attracts, targets, and identifies prospective franchisees that match the franchisors' criteria. This allows small networks to focus on value-added activities, rather than spending time and money on strategies to draw in franchisees. It is as though you have, at your disposal, a team of professional recruiters, who continuously evaluate thousands of applications and only suggest candidates who fit your needs.
Reputation-Related Challenges and Franchisor Brands
When it comes to franchisee recruitment, smaller-sized networks are often at a disadvantage, as compared to larger networks. It goes without saying that small networks do not have the same reputation as well-known brands, the same financial resources, or teams specialized in franchisee qualification.
Recruiting good franchisees is a significant challenge for a number of franchisors. A candidate's interest, experience, and financial resources are not enough to succeed in the franchise world. For this reason, several networks pay close attention to the needs of their prospective franchisees before signing a contract.
However, in order to enable growth and attract a decent number of franchisees who are able to bear the fixed costs associated with maintaining the network, franchisors are often tempted to accept applicants who are able to finance the franchise, and fail to assess other important criteria. This often results in long-term, negative impacts.
According to Greg Nathan, founder of the Franchise Relationship Institute, 40% of the success of a franchise, provided that the franchisor's concept is well-known and profitable, is dependent on the talent and hard work of the franchisee, which is why it is so important to select the right candidates.
The relationship between a franchisor and a franchisee can last up to 20 years depending on the terms of the contract. If franchisees do not have the same vision as the franchisor, the right skills, and values that are consistent with those of the network, those 20 years may be long and difficult. A poor choice of franchisee may also result in legal issues; costly, trying legal proceedings may adversely affect your relationship with your best franchisees and may even affect the way that your customers perceive your brand's reputation.
A serious consequence of questionable choices of franchisees lies in such franchisees' inability, once they are in business, to deliver the desired client experience. It’s a major challenge for today's chains to provide customers with a similar experience across the network.
FlagFranchise is a tool that helps franchisors determine their ideal franchisee profile, position themselves, and promote themselves to prospective franchisees. The algorithm automatically determines the benefits of each franchise network and presents such benefits to potential franchisees based on their priorities. For example, it could showcase the geographical location of a franchise that is close to the candidate's home or build on possible strong affinities (values and interests) that are shared by the franchisor and prospective franchisee. Simply put, regardless of the size and reputation of the network, the strengths of each franchisor are presented according to rational facts that are based on the following satisfaction criteria specific to each prospective franchisee:
- Budget for initial franchise fees, start-up costs, and working capital;
- Expectations of support to be provided by the franchisor;
- Management-related and other skills and experience;
- Similar values to those of the network, and strengths that correspond to requirements;
- Entrepreneur profile: the right amount of entrepreneurship for your brand;
- Desired lifestyle; and
- Desired location.
In this way, prospective franchisees can more easily understand why it would be beneficial for them to apply to one franchise network instead of another.
Lack of Internal Resources for Recruitment
Large networks can often count on a team specialized in franchisee recruitment. That makes it easier for them to implement good pull strategies. For smaller networks, the situation is often the opposite: recruitment is an additional challenge added to a to-do list that’s already very long.
FlagFranchise is a web-based participatory recruitment tool that appeals to all generations, particularly the Y generation. The platform allows franchisors to avoid costly errors that could negatively affect their network. To make the process easier for franchisors, the FlagFranchisee application automatically handles:
- Publishing the business opportunity on various advertising platforms and social networks;
- Receiving, organizing, and sorting CVs; and
- Analyzing each prospective franchisee's potential compatibility with the franchise.
In addition, through the new information provided about each candidate's budget, expectations, affinities, values, interests, and requirements, franchisors can identify the potential franchisees who would have the highest level of satisfaction with their business opportunity and, therefore, would be the most committed and successful. For franchisors, it results in better cohesion between the network and future franchisees, thus leading to a more trusting relationship that is free of interpersonal and legal conflicts, to customer satisfaction, and to improved performance and profitability of the network.
For All Budgets
FlagFranchise is specifically designed to help franchise networks, while respecting their budgets; several packages are available that adapt to growth curves. Although FlagFranchise provides a number of innovative features, its prices are comparable to most traditional directories, and it also offers a range of additional tools, including best practices for selecting candidates and how to determine your ideal franchise profile. In addition to the recruitment tool, one of the packages enables franchisors to determine their level of compatibility with existing franchisees; this tool is accompanied by strategies to make the network more successful.