Franchisees need to understand they are going to be following a franchisor’s system and way of doing business. Indeed, that is exactly what they are paying to have access to, via their initial franchise fee. Highly entrepreneurial personalities often resist taking such direction and may find the confines of a franchise system frustrating.
Salesmanship is also required. All franchises sell some sort of service, product or experience, so all franchisees must be proficient at selling. The franchisor will likely have a sales process in place and the franchisee will need to be comfortable implementing it.
Franchisees require plenty of tenacity, as building their business will likely be more work than they expect, especially in the early days. There is no guarantee their franchise will be successful. It will take ambition and persistence.
The franchisee must be committed to anticipating and satisfying the needs of customers. It is also important to be financially proficient, with a basic understanding of accounting and money management.
Q: What do prospective franchisees need to know about franchisors’ recruiting processes?
Franchisors’ recruitment and selection processes will vary, but they are usually explained during the first phone call or meeting. In some cases, a franchisor’s website will explain what steps are needed to qualify as a franchisee candidate.
It is important to understand and respect timelines, as they are usually in place for a good reason. Making sure to submit information in a timely manner, for example, is the best way to ensure you receive the information you need to make a decision.
The franchisor will likely require an application and proof of unencumbered funds before providing a disclosure document. The process typically takes 60-plus days. When real estate is involved, it will often take longer. Patience may be required as you prepare for your new venture.