The Right Franchisees When Franchising Your Business

In my over three decades experience as a franchise consultant, I am often asked “What are some of the most important considerations when franchising your business?”  Here, I will examine one of those issues: selecting the right Franchisees when franchising your business.

Choosing the right people as your Franchisees, particularly at the outset of franchising your business, is a key element in the on-going viability of your franchise program.  If they are unhappy or do not prosper, it will be virtually impossible to sell additional franchises.  You must put some careful thought into this aspect of franchising your business.

Remember when franchising your business, the Franchise Disclosure Document must contain a list of all current Franchisees as well as a list of any Franchisees who left the system in the previous twelve months.  As a franchise consultant, I believe this requirement is one of the most meaningful in the franchise disclosure laws.  It gives your subsequent prospects the opportunity to talk to your Franchisees before investing in your program.

When franchising your business, always remember that you can ill afford a failure among your first few Franchisees.  One unsuccessful franchise out of two or three is more harmful to your long-term growth than one closure of 25 or 50 franchises.the

When franchising your business, it is wise to carefully consider the attributes your Franchisees must possess in order to thrive.  These factors typically include the necessary financial resources, work experience, skills, personality and character.

When franchising your business, there is a very important question to ask yourself about any Franchisee under serious consideration, “Is this person a team player who will support my company vision, culture, goals and growth strategy?”  Spend time with your prospective Franchisees so that you can learn more about the real person, not just the façade the candidate may be revealing.

The initial term for franchises is often ten, fifteen or even twenty years.  Successfully franchising your business means you must bear in mind you are forging a long-term relationship.  Do you want to be in a professional relationship with this person for that length of time?  As tempting as it may be to sell your first franchise, when franchising your business, you must recognize the power the Franchisee will have over your success as a Franchisor.

When franchising your business, I strongly recommend that you do your best to verify what prospective Franchisees tell you.   You must be able to trust your Franchisees, and it is far better to know up front whether you can.  This is another key to successfully franchising your business.