It’s often difficult to identify the best prospective franchisees after only reading their CVs. Although the CV is a good tool to determine candidates' qualifications, it says very little about their expectations, motivations, values, and interests. Simply put, a prospective franchisee that looks good on paper will not necessarily integrate well into your network, and a bad choice can be costly for the brand. Poor performance or non-compliance with your business formula could negatively affect the image and performance of the whole organization.
No matter the size of the chain or how long it has been in operation, attracting and selecting good franchisees is a major challenge. In the past, a number of franchisors were in the habit of selecting franchisees based on their ability to cover the costs associated with the franchise. Years later, they have had to deal with the devastating impact of this single selection criterion.
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’s 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. Imagine how long and difficult these 20 years would be if the franchisees in your network did not have the same vision, the right skills, and values that are consistent with those of the network. A serious consequence of questionable choices of franchisees lies in such franchisees' inability, once they are in business, to deliver the desired client experience. A poor choice of franchisee may also result in legal issues; costly and 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.
For this reason, FlagFranchise designed a new tool to measure the potential compatibility of a prospective franchisee with the culture and demands of your network. The goal is to easily identify the best franchisees, both on a professional and human level. Through FlagFranchise, you will save time and be able to focus on candidates who are suitable for your brand. This will improve new franchisee satisfaction, motivation, and performance.
Finally, depending on the subscription you select, you can use FlagFranchise to assess your compatibility with your existing franchisees and to access strategies and tools to make your current network more profitable.