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Talk to any franchisor they will invariably say that one thing they cannot have too much of is – good franchisee candidates. But what exactly is a ‘good candidate’ and what can you do to make sure you fit this definition and stand a decent chance of matching up to franchisors’ selection criteria?
Being well researched will also help you to be confident in your discussions with your prospective franchisor. Franchisors spend a great deal of time getting to know candidates before they decide to grant a franchise. One of
the first things they look to assess is a candidate’s support structure. Getting a new business off the ground involves a number of challenges, so a candidate who can demonstrate that they have the support of their family, for instance, will be in a stronger position.
Almost all franchises require a lump-sum investment and most candidates will be looking to take out a loan in some form. Generally, franchisors take the view that a franchisee who has borrowed funds is likely to be incentivised to succeed, so do not be afraid to tell them upfront about your financial position. Established franchisors have a wealth of knowledge about what the banks are looking for, and they are usually more than happy to share this information.
Highlighting to your franchisor that you have already applied your mind to the financial aspect will help to demonstrate that you are a candidate to be taken seriously. The quality that franchisors look for above all is a willingness to work hard.
Operating a successful business requires stamina, the motivation to grow and be hands-on. Do not be afraid to sell the experience and dedication that you have demonstrated in the past and your successful career achievements so far.
When you purchase a franchise you will be required to implement a proven business model and system. This means you need to be the type of person who can demonstrate an ability to follow an established set of procedures. If you are the type of person who likes to do their own thing, franchising may not be for you.
Equally, if you have an eagerness to learn, take on board advice, and then implement what you have learned, you will be on your way to being a perfect candidate.
Franchisors often use detailed questionnaires and psychometric testing. The defining factor, however, is usually as simple as the franchisor’s gut reaction as to whether you are the type of person they can work with. Franchisors are on the lookout for candidates they can engage with on both a personal and business level.
This is important because both you and the franchisor are making a longterm commitment to work with each other to ensure your business has the best possible chance of success. Demonstrating that you are a good
communicator and establishing a rapport between yourself and the franchisor representative will be extremely important.
The great thing about franchising is
Evidence that you’ve done your homework is always attractive to ethical franchisors. To this end, being able to say that you have taken advice from an accountant and a specialist franchise lawyer is also a significant advantage.