Franchise Recruitment: The Answers To Most Of Your Questions

Management 2000 has over thirty years of experience in consulting to franchise companies. Management 2000 has found that effective franchise recruitment gives franchise companies a unique competitive edge over their competitors.

The question we keep hearing is, “How do we recruit better and more qualified candidates?” As franchisors seek eligible, competent, franchisees to increase their businesses, they realize that the strategies for success used in the 20th Century are ineffective in the 21st Century. Franchise recruitment and development is the critical component of expanding a business using franchising as a growth strategy. As times change so must franchisors, particularly in their approach to the generation, qualification and granting of franchises to qualified individuals and entities. To be a successful franchisor in the 21st century the practices used to grant franchises in the 20th Century, are ineffective. Franchisors need to redesign their strategies to best meet the needs and expectations of the 21st century candidates. Franchisors need to create an environment where the customer is the focus of everything and everyone in the company. Franchisors must grant franchises only to those qualified individuals and entities who will implement their systems, fully, completely, and consistently, resulting in the acquisition and retention of VERY satisfied, loyal, frequent user Promoter customers who will build their Brand.

To bring your business into the 21st Century, Management 2000 had identified four primary areas of focus.

• Philosophy
• Process
• Technology
• People

Every Brand needs to have state-of-the art marketing strategies and tactics, using website optimization tools and social networking sites. Brands need to take advantage of proven technologies to interact with the candidates. All processes for handling the candidates, from first contact through signing the franchise agreement or area development agreement should be streamlined.

To understand a successful franchise recruit system from 30,000-foot overview, we have listed 19 things to help you recruit better-qualified candidates.

1. Follow a process.
2. Stay in control.
3. Framing the process of granting a franchise [not “selling” a franchise] as a “Mutual Decision-Making Process” designed to: “Help you [person or entity] decide if our company is the best opportunity for you, at this time in your life, to help you achieve your personal goals for income, lifestyle, wealth, equity, and debt elimination, and for us to decide if you are the best person/entity to help us achieve our goals.”
4. Using the Management 2000 Decision Making Check List [on line or hard copy].
5. Existing customers are the “diamonds in your backyard” and are often overlooked as the most ready, willing, and able to become your franchisee.
6. Existing franchisees opening new units as part of their personal business plan.
7. Existing franchisees giving you referrals and recommendations, especially in other markets.
8. Making the candidate the “center of the universe,” and not you, your concept or your franchise. The “mutual decision making process” is not about you, it is about the candidate or entity wanting to decide to become your franchisee.
9. Using Management 2000’s “5-Question close” at the very beginning.
10. Identifying and eliminating “deal breakers” in the very beginning of the process.
11. Having a web site dedicated to franchising.
    – Make sure there is a reason for them to call you after they look at your web site.
12. The use of technology to help qualify and interact with the prospects, inquiries, qualified individuals and entities, while making a decision about whether or not to grant a franchise.
    – Password protected process on your web-based technology.
    – The Decision Making Check List uploaded on the Web
13. Having a behavioral based profile that has measurable criteria.
14. Ensuring the candidates have the correct understanding of franchising and of the terms: initial fee, royalty, territory, what “granting” means, what is “granted.”
15. Using the power of the principle: “Personal Goals Drive Business Goals.”
16. Using the power of the principle: “Decisions are made on emotion, not intellect.”
17. Using financial disclosure information, (in the US called Item 19).
18. Using a Qualification Specialist, either real or virtual.
19. Having very specific “must haves” and “like to have” profile for the candidate.
    – Verify and validate the “must haves” as early as possible.

Management 2000 has been studying, creating, and implementing franchise development systems for the last 30 years, and these processes are ever changing. Before you start the franchise recruitment process, you must identify your ideal candidate, and the qualifications he/she must have and tailor your franchise recruitment process to that end.

Take the time to analyze your processes and determine how they can be used to discover qualified candidates. Management 2000 is always here willing to help. We hope you enjoyed this blog and look forward to many more years of improving franchise development.