Who you allow to operate your brand.
WHY IT MATTERS MORE THAN ANYTHING
A poor franchisee damages the brand for everyone and is difficult to remove.
WHAT TO ASSESS
Capital: sufficient for setup and to survive the establishment period
Relevant experience Willingness to follow a system Commitment to operate it personally Character and reputation
WHY WILLINGNESS TO FOLLOW A SYSTEM
Independent operators who want to do things their own way are the wrong candidates.
HOW TO ASSESS IT
Ask what they would change, and listen carefully.
WHAT SUFFICIENT CAPITAL MEANS
Setup cost, plus working capital for a realistic establishment period.
WHY THAT PERIOD
Undercapitalised franchisees fail regardless of the model.
WHAT TO VERIFY
Their funds, and their source.
WHY THE SOURCE
Borrowed capital with unsustainable repayment creates pressure that damages operation.
WHAT TO ESTABLISH
Whether they will operate it themselves or employ a manager.
WHY IT MATTERS
Absentee franchisees perform worse, consistently.
WHAT TO PROVIDE CANDIDATES
Honest information about the investment and realistic returns.
WHAT NOT TO PROVIDE
Projections you cannot support.
WHY
They are the basis of later disputes and claims.
WHAT TO ENCOURAGE
Speaking to existing franchisees, without you present.
WHY
It builds trust, and candidates who are deterred by honest accounts would have failed.
WHAT TO AVOID
Selecting on capital alone Awarding territories to whoever asks Recruiting faster than you can support
