A young franchise organization may be more relaxed in their evaluation of franchise candidates as their foremost objective will most likely be to grow their franchisee base. On the other hand, an established franchise organization, normally in relatively a better position to choose franchisees, may adopt a more stringent policy. Whatever the case, all franchisors will need to figure out one fact - whether the candidate is suitable to operate the business.
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What Franchisors Should Find Out About Franchise Candidates
Sometimes, franchisors will look to introduce a collective activity (i.e. special promotion, marketing event, etc.) whereby all under the franchise brand will have to implement it themselves in their own territory. Without possessing basic organizational abilities, the franchisee may have difficulty developing the project and following through on details. Or worse, a weak implementation could result in a negative impact on the franchise and brand instead.
Franchisees, as business owners, will have to make decisions on a regular basis. Sometimes, these decisions will have to be made under stress or ad-hoc situations. Regularly making bad calls will see the franchise business go to the dumps quickly.
The ability to manage finances will be a particular point of interest for franchisors because franchisees will be required to make periodic franchise payments based on sales records. If these records are in a mess, franchise payments could also be affected too.
Drive For Success
One of the worst types of franchisees are those that are taking up the franchise just as a hobby, with minimal interest in the well-being of the business or brand. When this interest wears off, the franchisee will be looking to exit just as quickly as they entered the franchise agreement.
Support From Those Who Matter
Running a business is a life-changing decision, not to mention being stressful enough as it is. Without emotional support from those who matter, franchisors could be looking at a franchisee whose state of mind is unconducive for running a business optimally, much less a franchise.