In spite of the economic uncertainties, the growth of franchising continues, with the latest NatWest/British Franchise Association (bfa) survey revealing that the industry is now worth a record £12.4 billion, 15 per cent up on last year’s turnover figure.
Pip Wilkins, bfa client services manager, said: “If you are attracted to the idea of running your own franchise business, it is helpful to know what qualities and skills a prospective franchisor will be looking for.”
Building a successful franchise network depends on recruiting the right people to follow a tried and tested franchise formula. While many franchisors are keen to welcome ideas and suggestions from their franchisees that could benefit the whole network, they may be inclined to avoid highly entrepreneurial candidates who might find it difficult to follow a proven system. On the other hand a total lack of entrepreneurial spirit could also be a reason for rejecting a franchise applicant, as would a lack of finance.
In selecting franchisees, factors such as previous experience are seen as less important, as training and support will form part of the franchise package.
The assessment and selection process usually begins with an initial expression of interest from a prospective franchisee at a franchise exhibition, or via the company website. The next stage involves a visit to head office to meet the franchise team and get a closer look at the business operation. This provides an ideal opportunity for both parties to get to know each other better and decide whether or not they feel that a business relationship is likley to work.
Serious candidates may then be invited to spend some time working with an established franchisee to experience some of the challenges at first hand. At this point the franchisor should have a good idea of whether or not the candidate is right for the business, and vice versa, and the process will usually come to an end. However, that doesn’t necessarily deem the candidate unsuitable as a franchisee, and they may find they are better suited to a different type of franchise.
Franchisors are likely to be impressed by candidates who have done their research into the franchise market and their business in particular, while prospective franchisees who are looking for a `get rich quick scheme` with an immediate or very short return time are a big turn off for franchisors.
Pip Wilkins added: “The franchise recruitment processes and selection criteria appear quite stringent, but this is vital, as the problems that can arise as a result of appointing an unsuitable franchisee can be damaging to the whole of the franchise network.”
For more information on franchising visit www.thebfa.org