If you've reached the decision to buy a franchise, it's
almost like settling down with that special someone. After
reviewing the multitude of franchising options available,
you've singled one out. Now, let the courtship begin...with the
franchisor.
In traditional courtships, meeting the parents to obtain their
blessings is proper etiquette. For franchisors, it's mandatory,
but they, just like parents, want to get to know all about you.
Good franchise companies can't and won't simply hand over
the keys to your business upon deposit of your franchise fee-they
have to consider many factors first. During this
"investigation process," the honeymoon may seem as if
it's over before it ever began, and you may become annoyed with
the barrage of questions. But upholding standards for their
franchisees not only ensures that quality and excellence are
associated with their image, but also with yours, if you join their
"family."
Do Franchisors Want Entrepreneurial
Franchisees?
Emerging successfully from your franchisor evaluation requires
understanding what they're looking for and proving you've
got those qualities. While running your own franchise is like being
an entrepreneur in regard to working for yourself, Jeff Elgin,
founder and CEO of franchise referral consulting firm FranChoice,
in Eden Prairie, Minnesota, believes most franchisors seek
system-focused people rather than true entrepreneurs.
"[Franchisors] have spent years building the company,"
says Elgin. "They don't want someone who will come in and
try to innovate, because that produces chaos."
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Choosing a franchisee who's too entrepreneurial can lead to
problems, agrees John Campbell, vice president of franchising for
Papa John's
International. But the other extreme he sees is selecting a
candidate who's unable to follow a system, though they really
try. "In either case, we have all made bad choices in our
quest to help them become successful businesspeople," Campbell
says.
"You want someone who has enough entrepreneurial spirit to
be on their own," says Rob Sanders, director of market
expansion for Merry Maids. But with a franchise, he adds, "you
don't have to reinvent the wheel." Ultimately, according
to Sanders, they look for a good balance between the
entrepreneurial and the system-focused person.
What They Look For
In terms of experience, many franchises, including both Papa
John's and Merry Maids, prefer management backgrounds. Elgin
finds that franchisors typically don't seek out candidates with
specific skills related to the industry, but there are exceptions.
Conversion franchises, such as hotels and real estate franchises,
seek experienced people who are knowledgeable in the field. Papa
John's also prefers candidates with a food-service background
and operations qualifications. But it's not a deal breaker if
you don't have these traits-in some instances, Papa John's
will advise you to either first gain experience as an employee or
to go into a partnership.
While every franchise has its own standards, both attitude and
personality are universal factors franchisors consider. Says Elgin,
"Sometimes you get people who are wishy-washy. Those people
are scary to a franchisor." Those who have a firm sense of
what they want to achieve are far more likely to impress
franchisors. Franchisors also judge what type of personality you
have and how that will translate into running one of their
franchises.
Although personality ranks high, it's still not strong
enough to stand alone without financial qualifications.
Fortunately, some franchisors offer help. Papa John's has 10
companies that finance their franchisees, says Campbell,
"depending on their creditworthiness and the number of stores
that are to be built."
But many prospective franchisees don't know or understand
marketplace financing, says Elgin. Some candidates believe they can
easily borrow money to cover what they don't have. "Unless
the franchisee has an existing business or personal assets, an
overwhelming majority try to set up home equity," he explains.
"But the minute you say you want it for a business, it becomes
very difficult." Huge factors in looking like the right
candidate are having capital resources and showing franchisors
you've got your finances in order.
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