Planning: Physical franchisee interviews
Franchisee recruitment, interviewing and selection is an important process that needs to be thought out and captured in the franchise strategic plan, which in itself helps the franchisor to have a clear picture of what will happen at what point.
The interviewing process usually follows psychometric and/or diagnostic tests described in an earlier article.
At this stage the applications have been narrowed down and only those with potential to become a franchisee will be interviewed.
It is possible that a series of interviews may be needed. Because of the long-term relationship to be established, the franchisee should be given time to consider his/her application.
During the physical interview the following approach is worthy of consideration: Do not attempt to sell the franchise-let the franchise sell itself. Be transparent-honesty is powerful. Generate trust, compassion and integrity. Be concise, discuss the positives and negatives. Transfer passion-use the same level of enthusiasm for the business to inspire others. Passionate people attract likes.
Understand as much as possible about the applicant-find out the family’s dreams, goals and ambitions and link the business opportunity to the fulfillment of these dreams. Understand the psyche of the person and whether the franchise is the right fit for them.
Know your business and what drives and affects its success-in other words, knowing the market conditions, industry, competitors etc. If doubt is created you will lose creditability.
Carefully probe the potential franchisee’s background and how it fits with the details they have supplied-does their past fit with their current position or are they embellishing facts.
Consider the candidate’s domestic situation-is he/she in a stable relationship or situation? It is important that they have the full support from their partners.
Practice cautious optimism during the recruitment process-ensure the applicant has a realistic picture of the commitment required to operate the franchise.
Don’t promise things that can’t be delivered, always remain clear on your obligations and be clear on the type of decision-making that will be used.
The decision-making process is complex. It is therefore vital that the right decision-not the most convenient, be made.
Given the seemingly intense nature of the process, some first-time franchisors are tempted to use an employment agency to select franchisees for them.
This is a big mistake to be avoided as it does not connect you to the applicant from the word go.
In summary the steps required in the franchisee recruitment procedure are: Potential Franchisee completes application form including self- evaluation forms.
Their area of interest must be indicated. Then you interview potential franchisee.
Then give the potential franchisee a Confidentiality Agreement accepting to protect your Intellectual Property.
Then follows the Franchise Disclosure Document and Franchise Agreement whereby he/she has at least 14 days (cooling off period) to read and accept.
Then you sign the franchise agreement and the franchisee pays 50 per cent of joining fees upon signing. You give the franchisee the training program and the final balance of the joining fees is paid before commencement of training.
Upon receipt of final balance and before commencement of training the franchisee receives the Franchise Operations, Procedures and Training Manual, signed against a specific deed declaring it is loaned to him/her for use during the tenancy of the franchise and must be returned upon termination-no photocopying or other extraction of information is allowed.
You then carry out the training, certify the franchisee and unleash them to run their own franchised outlet.
Given the seemingly intense nature of the franchisee recruitment and selection, some first-time franchisors are tempted to use an employment agency to select franchisees for them.
This is a big mistake and should be avoided as it does not connect you to the applicant from the word go.
The writer is a Franchise Consultant helping indigenous East African brands to franchise, multinational franchise brands to settle in East Africa and governments to create a franchise-friendly business environment.
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