If you franchise your business you will be achieving quicker success in a tight market full of skilled competitors. Franchising your business will avoid further expense in order to market your business in the best possible way. You can avoid getting into debt and having to put forward a large capital in order to start your business and make it a success.
However, if you do decide to franchise your business it is important to choose the right franchisee who will boost your business and increase the sales as well as placing your business in the forefront of your market niche. It is therefore essential you screen your franchisees to ensure they do not damage your image or put your business into jeopardy.
Before you choose a franchisee, check whether they are creditworthy. You must be sure that they are ready to fulfill their promises and obligations, by checking if they have done so in the past. You should also determine whether they can afford the on-going payments they will be making to your business. You can also check on how much assets they hold and how much leverage they will be using to purchase the franchise. Usually the more leverage involved the less likely they will be successful, although this is not always true even if they are low on assets. You will have to have a global picture to be able to determine the franchisees ability.
Keep in mind that although a franchisee is in fact a business partner and not an employee, when searching for a franchisee you should be using the same criteria you would do for an employee. The important factors you should consider are their job turnover, attendance and periods of unemployment as well as their experience in the job you are about to give them and their field of qualification. You will also have to make sure they have management skills, which is an important asset in a franchisee.
Do not forget to carry out a criminal background check or other similar research on the candidates background, for there are many scams in various sectors of the market nowadays.
A franchisee must be driven and motivated if he or she wants to be successful. Only passionate franchisees can be successful in a highly competitive market. A well-driven franchisee will bring higher revenues to your business and you will consequently get higher management fees. It is also to have someone happy at the job they are doing and satisfied with the results they can achieve, this is also an incentive to do better.
Although as a business manager you instinctively know these are the traits you should be looking for in people, it is not always easy to find them. You should be disciplined in your research and persevere even though the search could prove hassling and demanding.
Dialogue between the franchising manager and the franchisees is essential for a winning venture. They will need all the support you can give them if you want your business to profit and be a success.