Experienced franchisors know the difference between a ‘Good’ and ‘Great’ franchisee. More than 20 years ago, in my own research, a multi award- winning franchisor commented on the sometimes stark performance differential – even when controlling for other relevant factors:
“The new owners took it from $660,000 to $1,890,000 in less than three years. We’ve got a number of examples like that; same site, same people (staff), same rent, same everything.”
Clearly, great franchisee selection is important – alongside a great business model and franchise support, of course. And if you want to supercharge your franchise system, you need to make sure you select the right people.
Having an updated franchisee profile is pivotal. The franchisee profile is supposed to reflect those identifiable attributes most associated with successful franchisees. It can be represented as a matrix of characteristics and attributes you believe are important for franchisees to be successful within your franchise system. In turn, these can guide your franchise marketing and franchisee selection.
The franchisee profile will be different for different organisations, but there are always common dimensions that need consideration.
Examples of important dimensions include:
- Qualification
- Experience
- Existing networks
- Community involvement
- Personal attributes & psychometrics
- Financial situation
- Health & wellbeing
Within each dimension there can be a wide range of factors to consider. In turn, some (such as an existing qualification for a licensed trade or profession) may be considered mandatory. Others may be considered an advantage. Within many, there is also often recognition that some aspects can practicably be trained, whereas others cannot.
In our view the franchisee profile should never be set in stone. While the foundations may stay similar, the franchisee profile should be regularly updated. That way the franchisor can capitalise on their experience, as time develops.
This update should at the least be part of a Comprehensive Franchisor Business Planning process.
Have an updated franchisee profile to guide your recruitment marketing, franchisee selection and supersize your franchise system.
Relevant questions:
- What characteristics and attributes do you look for in potential franchisees?
- What are your negotiables and non-negotiables for franchisee selection?
About the Franchising Best Practice 500 Series
This is part of a series of franchising best practices. Franchize Consultants is sharing and publishing these best practices weekly for the betterment of franchising. We know that better knowledge and execution of franchising best practices leads to bigger and more valuable franchisor and franchisee businesses.
We have assembled the first 40 best practices into The Best Practice Handbook, which is available for purchase.
