If you are starting a new franchise chain, how can you ensure you choose the best people to represent your franchise?

If your franchise is well developed, how do you ensure you continue to recruit the best franchisees? There is no doubt good franchisees make a good franchise chain and bad franchisees destroy a franchise. Readers should bear in mind that after 10 years, two thirds of franchises will no longer be in business. Is this due to a bad product or service or bad franchisees? The answer is generally that it is due to both.

Here are some points a franchisor should make to potential franchisees and questions that should be asked:

Tell the potential franchisee that there are no guarantees in business. The best franchises can’t eliminate all the risks associated with starting a small business.

Does the potential franchisee have what it takes to be his or her own boss?

Aspiring franchisees should start by evaluating their strengths and weaknesses as potential owners and managers of a small business. As a franchisor you need proof they have what it takes to be a franchisee.

10 THINGS TO FIND OUT ABOUT YOUR FRANCHISE PROSPECTS

1. Are they self-starters? Can they develop projects, organise their time, and follow through on details?
2. How well do they get along with different personalities? Can they develop working relationships with a variety of people including customers, suppliers, staff, bankers and professionals such as solicitors, accountants and consultants?
3. Can they deal with a demanding client, an unreliable supplier or a difficult receptionist if business interests demand it?
4. How good is the franchisee at making decisions – often quickly, independently, and under pressure?
5. Do they have the physical and emotional stamina to run a business?
6. Can they work 12 hour days, six or seven days a week?
7. Do they know how to manage cash flow?
8. Is their drive strong enough?
9. Can they handle running a business emotionally? Will they burn out carrying the responsibility for the success of the business?
10. How will the business affect their family? Will the family trust and support them in the difficult, early business year? Will family members work in the business? Can the family adjust to a lower standard of living or putting the family assets at risk in the short-term?

Better selection makes franchises better.

Howard Bellin is the founder of I-F international, a global business specialised in marketing channel strategies, including franchising. He is the only non-academic member of The Board of Editors of the Journal of Marketing Channels.