Are Your Franchisees Fit for Your Network?

October 3, 2018 12:00 am Published by

By understanding the vulnerability and strength of a franchisor-franchisee relationship, we can’t help comparing banners to domino structures, more or less grand and elaborate, depending on the size of a franchise network. While independent by itself, each domino tile is however dependent on the whole formation to which it belongs. Standing up, it is a pillar of the growing, expanding domino run; but should it fall, it can force all the pieces down with it.

This paragraph references our earlier article The Strength of Franchising, in which we discussed the importance of building a solid foundation to ensure the vitality and continuity of a franchise network. So, how do we build a strong, healthy network?

Have you established your corporate mission, values, and goals? It is a common misconception that these notions are of little use, and are only needed for the business plan, to obtain financing, or simply to look good on the company’s website.

Yet, these three elements are anything but useless: they represent the pillars of your network. First, you must identify them, and then make sure you convey them across the network. To ensure the smooth operation of the company, the management must showcase each element of the network’s foundation in order to create a comprehensive, omnipresent organizational culture, which will then become an integral, vital part of every single player in the network. It is the snowball effect.

Once you’ve established your strategy–alignment–concept, identified your methods, documented your practices, operating manual, clauses and contracts, and all the components required for the growth of your network, you need to find quality franchisees.


The implementation of a network requires significant investments, in both time and money. Often, determined to accelerate their network growth, franchisors accept franchisees with basic operational skills, mostly only considering their financial capacities.

However, these two prerequisites when used alone have proved to be insufficient, even harmful, over the years. A franchisee who cannot ensure his growth will hurt customer experience, employee relations and partnerships with suppliers. It is the reputation of the network and of the brand itself that is at stake.

An underperforming franchisee also has a negative impact on the territory presence, losing the market share to the competition. Rectifying the situation would require a lot of energy on the part of the franchisor, the energy that could be otherwise invested in the growth of the network.

Moreover, unhappy franchisees sometimes become the worst critics of their banner. They sour the relationships between the franchisor and other franchisees, and upset the profitability of the entire network. In the end, the network becomes unhealthy, making it difficult for the franchisor to attract new franchisees (and customers) because it is the credibility of the network that takes the blow.

A poor choice of franchisees is also likely to end in legal actions, which are expensive and complicated, and which are likely to tarnish the relationships with the best franchisees in the network and the reputation of the brand. In short, it is the very continuity of the brand that is at risk when the franchisee selection process fails to consider all the essential parameters.

While many new franchisors tend to overlook this step, identifying your ideal franchisee profile and setting up a strict franchisee selection process for your network is crucial. FlagFranchise was specifically designed to provide support and assistance during this critical phase of your network’s development.


Knowing your ideal franchisee profile is great, but what about your current franchisees? Do they fit this ideal profile? Are they your assets or are they bad for the network?

FlagFranchise, thanks to its network mapping tool, allows you to measure the level of compatibility of your current franchisees with the ideal profile that you have defined. It is very easy: we’ll send an adapted version of our questionnaire to your current franchisees. After we process the answers, you will receive a compatibility report and an automated report with strategy suggestions to optimize the performance of your current network based on the compatibility analysis results.

To start the new season on the right foot, we’re offering our Flag Plus package for the price of our Flag package, when you take a two-year subscription, which is almost 70% off the original price! This limited time offer ends October 19, 2018. Don’t wait!

A $5,500/year value, this package includes:

  • Creating a profile for the banner
  • Dissemination to prospective franchisees
  • A management tool for applications received
  • Candidate evaluation report
  • Guide: ideal franchisee profile and selection process
  • Current franchisee compatibility analysis
  • Computer-generated report on network optimization strategies

It is a simple and effective way to optimize the strength and performance of your network. Act now! Contact us at 1-877-347-7633 ext. 0 or by e-mail to

FlagFranchise Team