On paper, it sounds pretty simple. You have a good business model, you decide to franchise, and you take people on board as franchisees who want to help your company grow. While many franchisors succeed in attracting just the right person to their business, others aren’t so lucky.
The rise in franchise resales could be symptomatic of a failure to find the best people, particularly when it occurs within just a few months of taking on a franchise in the first place. While most consultants would advise you need to keep going as a franchisee and get support rather than sell, many simply find themselves facing up to having made a bad decision in the first place.
Franchisees failing is not unusual. If you are a franchisor, however, you should be making every effort to ensure that this doesn’t happen. It not only impacts on the franchisee as an individual but can damage your brand if outlets fail. Your attempts to attract the right people are vital.
Creating a Strong Business
The first thing you need to understand is how ready your business is for a franchise model. Have you reached the stage when it’s a viable option or is it still a little too early? Is your business model replicable outside of its existing form? What processes do you need to put in place to ensure franchising success and do you have the budget and team to carry it through? All these questions need to be answered before you go ahead and put your brand up as an attractive business that others will want to get involved with.
Choosing the Right Franchisee
The selection process is key if you want to be sure that you get the best franchisees. That means having an intrinsic understanding of what is needed to succeed in your business. It’s not simply a matter of the applicant having the money to invest. Do they have the other qualities that you are looking for? Are they likely to stick around and make a success of it or bail out at the first sign of trouble? How are they looking to develop and evolve and what impact will that have on your franchise?
In the many cases, businesses simply don’t have the experience or processes in place to make good selections when it comes to franchising. Using a franchise consultancy that has experience is the best option and can greatly reduce your chances of making a mistake in the selection process. You need to be choosy here – it benefits no one if your business opts for a franchisee who isn’t going to last the distance.
Support for Franchisees
Finally, the other major factor in ensuring that franchisees don’t drop out is the provision of training and support. Hopefully, not only is the franchise buyer coming into a business that has a strong and successful track record but they also have access to the support and guidance they need to make their investment worthwhile. Again, it pays to liaise with a franchise consultancy who will be able to guide you through what is needed and what works.
Finding a ‘good egg’ is not a complicated process. It does, however, require a good deal of focus and work to put in place the recruitment and retention measures that ensure you get the right person and helps you deliver the support that keeps them on board.