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  • Writer's pictureRaymond Duffy

Franchisee Recruitment for Franchisors

Introduction


It is a critical factor for when establishing a franchise system and for the continued growth and sustainability of the franchise brand that the franchisor has the right franchisees as members of its franchise network.

Franchisors should:

  • develop a clear profile of the type of franchisee it is seeking to recruit;

  • carry out appropriate and thorough assessment of any franchise enquiry; and

  • not rush to grant a franchise in order to grow the franchise network.


Attracting Prospects


There are different methods franchisors can adopt to assist in recruiting franchisees to their franchise network, such as:


  • demonstrating at expos;

  • print advertising;

  • direct mail;

  • editorials;

  • networking;

  • business brokers;

  • seminars;

  • word of mouth;

  • social media (eg. Facebook, Instagram, LinkedIn, etc)

  • websites


Franchisee Profiling


While searching for prospective franchisees to a franchise network, it can occur that certain candidates have great qualifications, experience and expertise on paper but which later does not translate into the type of franchisee the franchisor is looking for.


Franchisee profiling is a method used during the recruitment process to help identify the right candidates as a franchisee for a particular franchise system.


There are a number of profiling tools available on the market to assist, including:



A. Psychometric Tests


These tests are designed to profile a candidate’s behavioural style, mental capabilities; and evaluate a candidate’s cognitive skills.


There are a variety of suppliers of these types of service. Prospective Franchisors should shop around. We can provide further information upon request.


B. Personality Tests


Successful franchising requires a synergy between the franchisor, the franchisee and the franchise system. Personality-based tests can provide franchisors with a valuable selection tool.


Research into the area of personality identify five (5) basic dimensions of personality known as the Five-Factor Model (FFM). The five basic factors are labelled differently by researchers, but the labelling system for the FFM is typically as follows: (i) openness; (ii) conscientiousness; (iii) extraversion; (iv) agreeableness; and (v) neuroticism.


A well-known personality testing tool is Myer-Briggs.


Another similar tool is called the Keirsey Temperament Sorter.


C. Social Media Profiling


Social media profiling refers to using information that is publicly available on social media platforms to create someone’s profile.


Traits of a Franchisee


Personal traits that may exhibit that a particular person is suited to being a franchisee may include:


  • Exercise self-discipline

  • Works well under pressure

  • Support of family

  • Self-motivated

  • Can take direction

  • Ability to follow procedures and processes

Recruitment Processes


A crucial element of any franchise recruitment process is for the franchisor to understand what it is that the prospective franchisee is looking for in joining the franchise system.

Franchisors should give consideration to matters such as:


  • what is the basis for the prospective franchisee's decision to join the franchise network ?

  • whether the prospective franchisee has unrealistic expectations of what will be involved ?

  • does the prospective franchisee have the required skill-set to make their franchised business successful ?

  • what is the prospective franchisee’s work experience ?

As part of any recruitment process, a franchisor should have appropriate checks and balances in place.


The process may entail:


  • Application Form

  • Profiling (as mentioned above)

  • Interviews between Franchisor and prospective franchisee

  • Allow the prospective Franchisee to have a short period of work experience with you

  • Store visits with existing Franchisees


For further information about Franchising, contact Greyson Legal | Franchise Lawyers.


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