Questions to Ask A Potential and Perspective Franchisee
Validation is certainly one of the most crucial steps in your journey to find the ideal franchise opportunity. It refers to the process wherein franchisees who have been bought into a concept that you have expressed interest in are interviewed. During the process of validation, you can gain the clarity if a particular franchise is right or not for you. Although an interview might not provide the answers for everything, it can help you get better feel for a new franchise partner. After all, that franchise partner will be an ambassador for your company. And as a franchisor, you must be sure that a potential franchisee will be right fit for your team and the brand.
You can consider asking the questions enlisted in the blog:
- What do you understand, if all you do, to be a franchisee?
Needless to say, joining a franchise system is way too different than working in a corporate company as an employee or choosing traditional business. It can be freeing on several grounds. After all, as a franchise partner, you’re fundamentally running your own business, it’s just that everything is done under the rules of the franchisor and franchise agreement. Past experience in franchising or the industry is not inevitable but making sure that your potential franchisee is clear about the franchise model’s structure is important indeed. Hence, you should ensure that your budding and aspiring entrepreneur understands the structured freedom coming from joining a franchise.
- Why are you interested in this category/type of franchise OR our franchise?
You’re mostly not the only franchising brand in the industrial sector; there are several other brands and companies franchising, it’s important to understand why an interviewee is pursuing a specific company – yours. While evaluating the prospective franchisee’s rationale, you should keep his passion for the brand and industry as a key component. If an interviewee is excited about the industry, they most likely will be better equipped to fill the similar level of excitement and enthusiasm to other people as well. A franchisee’s success can be tied to that individual’s passion for the business.
- How do you think that you’re a right fit for the company?
Every brand has its own collection of values and beliefs. When folks join companies that share their values and beliefs, the working relationship strengthens. It’s fairly easy for franchisees to sell potential customers on the value of their business when they support it entirely.
- What is your Industry Experience?
Most of the times, the prospective franchisee won’t have a relevant experience in your industry. That is what typically makes joining a franchise fairly attractive – an existing business foundation and training. Besides that, the previous job experiences backed up with life experience can offer all the skills that a franchisee needs. After all, most of the basic life and job skills, learned over the years create the foundation required for running a franchise.
- Have you been a manager or served in a leadership role?
Managing a business certainly requires the skills to manage and instruct the people working in the business. A franchise partner needs to be aware of his or her strengths and weaknesses, knowing when it’s best to handle something themselves or hire someone for a specific role.
- What is your commitment to success?
Starting a business takes considerable commitment particularly in terms of time and franchising is no different. Ensure if potential franchisee is willing to put in the hours or not knowing that the work may be unending. A prospective franchisee who is unwilling to put in long hours should probably consider a different business opportunity.
- Is your partner supportive?
Besides personal life, lack of support by an interviewee’s partner and family may adversely affect their franchise operation. Starting a franchise like any other business requires single-minded focus. Getting buy-in is important and some brand owners may require the franchisee’s partner be involved in some aspects of the business. Franchisees should be aware of this requirement because it could cause extra problems if a partner is not supportive enough.
- Do you have a Marketing Plan, if yes, what is it?
Does the prospective franchise know how to build a customer base and increase footfall? Does he or she have a plan to find those customers? As a franchisor, you need to see that a potential franchisee has what it takes, meaning a relentless goal to bring in the business by bringing in the customers.
- How do you plan to finance your franchise business?
It happens that in business to not make a profit in the initial phase of it for example; first year. The start-up process should be well known and understood to you. Consider coming onboard armed with a financial plan and capital reserves to backup yourself and the business as it gets started. After all, along with the actual cost to buy franchise rights, the franchisee will be responsible for the many start-up costs as well.
- What are long-term goals, if any?
The goals and visions of a person reflect a lot about one’s personality. A potential franchisee who doesn’t have any mentioned goals may not be the right person for your franchise. Or their goals and visions may not match/connect well with your franchise system. Ultimately, the success of your franchise business is closely associated with the eventual growth and profitability of your franchisees. This makes choosing the right franchisees for your business quite important.
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