Of course you can!
Start up franchisors, and most emerging franchisors, are at a stage of growth in the franchise evolution when the founder is involved in every franchisee recruitment process and generally rely on how well they get along with the potential franchisee, together with their financial resources, to select the next franchise partner.
When selecting the dirty dozen or those first 12 franchisees in your franchised network, franchisor founders are often quick to push a candidate through their process to get another site or territory open, another listing on the website or unit in the disclosure document. All fast growth is good growth, right?
Well sometimes, and depending on the skill and competencies required to operate your franchised outlet or the cash required to fund the opening, this strategy may work for you. But what if it doesn’t?
Franchisees who don’t share the values and culture characteristics of a franchise network, or are comfortable at a business at a different stage or growth, or lack social and emotional intelligence, when it may be critical for success, are more likely to fail and exit the system without a good return on investments.
Let’s consider the key 4 tenets of successful franchising:
- Does the franchisor to have a replicable model?
- Is there is a viable market for its products or services?
- Are there sites or territories available and not over saturated with competition?
- Do the prospective franchisees “fit” with the franchisor?
So how should franchisors ensure that they do have a great fit with a franchisee candidate to ensure compatibility and ultimately, performance.
A dilemma for all franchisors is that the cost of acquisition of a new franchisee is high. And to add to that, if they get it wrong and have poor fit franchisees the franchisor then has:
- Increased costs to train and support the franchisees;
- Franchisees who validate poorly;
- Franchisees who are difficult to satisfy;
- Increased risk of litigation; and
- Lower retention rates.
This leads to lost opportunities for the franchise network as a whole.
To assist with ensuring franchisors sign up more compatible franchisees, with greater chances of becoming high performers, Rebecca Monet, Founder & Chief Scientistic, Zorakle Profiles, developed a franchise specific tool using a meta analysis approach with 7 statistically validated sciences to provide insights for franchisors that no single test alone can do.
Zorakle Profiles has been assisting franchisors in the USA and globally for decades to assess franchisee candidates before joining a network, or helping franchisors assess existing franchisees for multi-unit expansion or learning & development requirements.
If you are interested to find out more about how work, take an assessment yourself below
Or contact Bruce McFarlane below.
CEO Zorakle Profiles Australia