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FRANCHISE NEWS

RECRUITING FRANCHISEES

Wednesday 30th November -0001

Recruiting franchisees is one of the biggest challenges facing franchisors. For many of them next weekend’s British Franchise Exhibition, taking place at the Manchester G-MEX, will be an ideal opportunity to promote their brand and attract interest from l

The advice from the British Franchise Association, however, is to focus on quality rather than quantity. BFA Chairman Brian Lewis, also chairman of BFA full member Cash Generator, says: “Many franchisors, especially the newer ones, regard a successful franchise exhibition has having produced lots of leads. In fact, the real sign of a successful exhibition is having met just one or two people who are the right type for your business and can afford what is on offer.”


This is illustrated by the BFA findings that new franchisors have conversion ratios of serious enquiries to appointment of around 10:1, while established franchisors have conversion ratios that are often higher than 50:1 sometimes higher than 100:1.


Companies that are new to franchising or exhibiting for the first time often make the mistake of over promoting their business, to the extent of giving the impression that anyone could be successful with their franchise.


“When you have great faith in your products and services it is easy to get carried away,” says Lewis. “And for a new franchisor with limited resources there is the eagerness to start building a network and see some revenue coming in.


“However, by rushing the recruitment process and signing up people who turn out to be unsuitable will cost the franchisee in terms of their time, money and emotional investment, and it won’t help franchisor. All franchisors are judged by the quality of the entire network. Choosing the wrong person can create negative perceptions of the brand across a wider audience.”


Cash Generator operates a thorough selection and recruitment process. Following initial contact at the exhibition potential franchisees are contacted by telephone for further discussion. If they are still interested they are invited to head office to take part in an open day, which includes visiting several stores of different sizes and location.


“At this point they have enough information about us to decide whether we are worthy of further investigation,” says Lewis. “While we have a clear idea of that person’s suitability to the business.”


Candidates are asked to undergo psychometric testing and role-play, and then given the opportunity to spend some time working in one of the company stores. By putting them in the front line with the staff and the customers they can see at first hand the challenges.


“If they haven’t enjoyed that experience, or we feel they aren’t quite right for the business, the process comes to an end,” says Lewis. “But that doesn’t mean they wouldn’t be successful as a franchisee with a different type of franchise.”


The BFA can provide a whole range of support and information services, including regional meetings held at venues right across the UK on a regular basis. Here, franchisors both new and old, can find out from experienced franchisors how to improve their recruitment processes.


Lewis adds: “One of the great benefits of BFA membership is the willingness with which other members are prepared to share their own experiences and information.”


For more information on franchising visit the BFA website at www.british-franchise.org.uk

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