In the world of franchising, finding the perfect franchisee can feel akin to dating. Franchisors are looking far and wide for that special someone who shares their values, complements their strengths and, most importantly, is looking for a long-term, harmonious and successful relationship.
But how can franchisors separate franchise flings from best-in-class businesspeople? Here’s how to spot quality franchise leads and keep them engaged during the recruitment process.
Make sure your profile looks great
Whether it’s dating or business courtship, human beings are often guilty of being instinctive. In fact, the Association for Psychological Science states that it takes us a tenth of a second to judge someone when first meeting them. Business is no different, so franchisors must ensure their online profile looks well-manicured and is in tip-top shape.
Whether franchisors are looking to attract leads using a form on their brand website, or an enquiry portal like BusinessesForSale.com, images need to be high quality, the wording needs to be compelling and engaging, and achievements and highlights need to be front and centre.
Franchisors also need to be mindful not to cast their net too wide and should be selective when picking the websites and partners to promote their opportunities. Having a profile in too many places can come across as a bit too prolific, and the upkeep and maintenance of many different online presences can be unwieldy. Think ‘quality, not quantity’.
Leads needn’t only come from digital spaces, either. Sometimes it’s nice to meet someone new in person. The best place to meet franchise leads in person is at trade shows – franchisors can either pay for a stand to showcase their opportunity or be more freewheeling and network down the aisles.
The qualification process – or ‘the getting to know you’ phase
Just like during the early stage of any relationship, franchisors must ask interesting questions and be good listeners for things to blossom eventually. Seasoned franchisors will often have initial screening questions to ask potential franchisees.
Some franchise listing websites – like BusinessesForSale.com – allow franchisors to include their own qualifying questions when setting up their profile page. This allows the franchisor to filter for things like previous experience and working capital and oftentimes results in a more optimised, whittled-down list of candidates. BusinessesForSale.com lets franchisors write the questions they want to include in the contact form themselves, to ensure that the process is tailored to their criteria.
Dealbreaker factors – or green flags – need to be highlighted during this stage, when a franchisor can note whether the potential franchisee has the financial stability, relevant experience, personal skills, alignment with brand values and other important attributes and details to make them a good fit. It’s also important to highlight and interrogate any red flags that surface during this conversation.
Top 10 questions franchisors need to ask during the qualification process:
- How much capital can you invest?
- What skills and experience do you bring?
- What are your expectations for earnings?
- Why are you interested in our brand?
- Have you created a business plan?
- How do you plan to market and promote the franchise locally?
- Are you prepared to follow established systems?
- How do you handle challenges and setbacks?
- What’s your five- or 10-year plan?
- What do you expect from us as a franchisor?
How to nurture quality leads – or ‘the courtship’ days
Playing hard to get can be a useful strategy in some circumstances, but in the franchise lead situation, it probably isn’t the best way to go. If the potential franchise buyer has passed the franchisor’s franchise fit assessment, proven themselves during in-depth interactions – like being invited to a Discovery Day or face-to-face meetings – and has passed important reference checks, then the franchisor is going to want to be contactable and responsive.
The franchisor also might be tempted to introduce new franchisees to existing franchisees from their network. This could be considered the ‘meet the parents’ moment – and also can prove a useful moment to judge how eager quality leads are to learn from current franchise partners.
Moving towards commitment – or ‘the proposal’
By this stage, after many meetings and much due diligence, the franchisor might feel like the lead is ready for the next step. This next step is a big moment in the franchisee’s journey: being presented with the franchise agreement. While this might seem like the franchisee is a hair’s breadth away from becoming a bonafide business owner, negotiations can often still break down at this point or flaws can be exposed.
It’s imperative that the franchisor presents the agreement in a clear, transparent and appealing manner, so they can help instil trust and set the foundation for a positive long-term relationship with the franchisee. The goal is to make the agreement feel like an exciting next step rather than an intimidating legal hurdle. This could be the franchisee’s first foray into business ownership, so it’s important the franchisor holds their hand – not literally! – during this stage and is empathetic and receptive to all queries and concerns.
While many of these points should have been ironed out at an earlier stage, some red flags that could potentially occur could be:
- Reluctance to provide information
- Unrealistic expectations
- Poor understanding of the franchise model
- Financial red flags
- Misalignment with brand values
- Communication issues
- Legal concerns
- Lack of commitment
How to live happily ever after
So, the franchisee has made it through and the franchisor has welcomed them to the fold, and it’s now officially the ‘honeymoon period’. However, this shouldn’t be a short-lived moment of enthusiasm: reputable franchisors need to ensure that support and collaboration continue after the lead has signed on the dotted line.
A comprehensive onboarding program needs to be in place, so franchisees understand their roles, responsibilities and operational standards. Proper training will equip them with the skills and knowledge needed and confidence building is essential to help instil a proactive approach to running the business.
This is also an important opportunity for franchisors to leverage new franchisees as brand ambassadors. Tactfully asking if they can share their positive experiences with others, which could result in further potential franchisee leads, is a worthwhile endeavour if the franchisor is looking to further grow its network. The new franchisee’s enthusiasm – promoted via social media, perhaps – can create a ripple effect, enhancing brand visibility and reputation. Also, franchisors can ask new franchisees to participate in industry events and local business groups, promoting the brand in their communities. Connections can lead to valuable partnerships and collaborations that benefit the entire franchise network.
Top 10 signs your lead could be a promising franchisee
One of the benefits of franchising is that franchisors get to vet who represents their brand. Here are the top 10 things to note before handing over the keys to a franchise:
- Passion for the business: A strong candidate should demonstrate enthusiasm for the concept and industry. Ideally, they’ll have industry experience and maybe even run a local franchise.
- Team player mentality: Look for individuals who understand the importance of collaboration and following a system. They should be willing to work within the established franchise framework while also contributing their ideas constructively.
- Resilience: Franchise ownership can be challenging. Seek candidates who show determination and commitment, with a history of overcoming obstacles in their professional lives.
- Analytical skills: Potential franchisees should understand the power of data and be able to interpret financial information.
- Competitive spirit: Strong franchisees often have a healthy competitive drive. They should be motivated to excel within your system and constantly look for ways to improve their performance.
- Financial capability: This is crucial: the candidate needs to have not only the funds to cover the initial investment but also sufficient working capital. They should also have realistic expectations about potential returns.
- Leadership abilities: Assess the candidate’s capacity to build and manage a team. Look for experience in hiring, training and motivating employees.
- Strong work ethic: Successful franchisees are often hardworking and dedicated. They should be prepared for the demands of business ownership and willing to put in the necessary time and effort.
- Customer service focus: Look for individuals who understand the importance of customer satisfaction. They should have a genuine desire to provide excellent service.
- Understand the brand values: The ideal franchisees should be able to verbalise the brand’s mission and values after the franchisor has run through them.
Want to learn more? Here’s some recommended franchise reading
● Are you a business owner with a franchisable model? Then check out this article about how to franchise your business and become a franchisor.
● While the article you’ve just read concentrates on putting processes and principles in place for a positive, fruitful franchisor-franchisee relationship, in reality, that’s not always the case. This helpful piece delves into what to do when this dynamic turns sour.
