How Does Your Franchise Approve Franchise Candidates?
Franchisors may vary in the process they use for approving franchise candidates; however, there is only one method that makes sense.
Whether a franchisor utilizes an in-house franchise development team, relies on franchise brokers or uses a combination of the two, a good deal of time and money is invested in finding qualified franchise candidates. In some franchise systems this factor coupled with the desire to grow the franchise network can impair the judgment of franchisor leadership when it comes to putting the stamp of approval on a franchise candidate. In simple terms, some franchisors find it hard to say no to a marginally qualified candidate. Avoiding this situation requires a franchise approval process that is accepted by the franchisorís senior management and is practiced throughout the organization.
How to Implement a Franchise Approval Process
- Construct a written franchisee profile that includes the skills,
experience and financial requirements that a franchisee candidate should
meet. The CEO or COO should oversee this project.
- Have senior management review and approve the franchisee profile,
including the operations and training staff in this process.
- Once all the comments are received and edits made, the franchisee
profile can be established. A byproduct of this process can be utilized for
- Establish a franchisee approval team that includes representatives from
operations, finance, sales and senior management, including the CEO. If
possible, try to hold the group to five people.
- When a franchise candidate makes his discovery day visit each member of
the franchisor approval team should meet with them. The meetings could be as
brief as 20 minutes.
- After the meeting the group should provide their feedback, questions and
comments to the franchise development representative. In some cases, a
candidate may be approved before completing discovery day; however, in many
cases group feedback will be completed the next day.
The objective of the franchise approval process is to expose a franchise candidate to key members of the franchise organization and obtain feedback and comments from members of this group. Since we are dealing with people, the process is imperfect, but by having franchise candidates meet with franchisor representatives who play a role in contributing to the future success of a new franchisee their involvement and feedback is important.
© 2013 FranchiseKnowHow, LLC
Ed Teixeira is the President of FranchiseKnowHow, LLC. He
can be reached at email@example.com