When a franchisor is entering into a relationship with a potential franchisee, it becomes particularly important to consider unambiguous communication. Hence to ask the right questions to potential franchisees serves as a stepping stone into that relationship. Finding the best suitable franchisee is no less than reaching a treasure trove. As a franchisor, you would want to make sure the franchisee responds to your questions in the interview positively aligned with your brand goals and visions. Here, you also need to know what questions get you straight to the desired responses. Furthermore, an interview may not provide answers to everything, yet it can be used as a tool to fetch you a perfect match. After all, a franchisee will be an ambassador for your company. As a franchisor, it is fair to find a franchisee that has the potential to take the business toward the envisioned goal.
Following are a few points you can consider when you want to ask the right questions to potential franchisees:
- Do you understand the underlying principle of franchising?
Franchising is a lot more liberating than being in a corporate or starting a business from scratch. A franchise system is a structured form of self-employment. Here the franchisee would be owning a business, but operating in accordance with the franchisors and the franchise agreement. Your franchisee needs to distinguish between the forms of employment and prepare accordingly. As a franchisor, there is unanimity between you and the franchisee.
2. What makes you a good fit for the company?
Any company, for that matter, is built around certain values, and ethics, and driven by missions and achievable visions. For a franchisee, to become a part of the business has to have a certain basic affinity toward the company’s core values. Only then, productivity is strengthened, and the franchisee is focused on the parallel growth of both business parties.
3. Do you have an understanding of the industry of the particular business?
Getting into the franchise system is comparatively less challenging in terms of having prior experience in the field of work. Many entrepreneurs are attracted to franchising for this advantage. Although franchisors do provide support and training for the franchisees and the franchise unit as a whole to instill the work culture upon which the business was initially based. This makes it easier for both parties to operate smoothly.
Knowing about the franchisee’s bandwidth for industry-based knowledge helps the franchisor prepare better and provide improved foundational support to the franchisee and the team. This fuels the operation of the franchise unit.
4. How would you rate yourself in terms of commitment to success?
The commitment to time is one major aspect that helps ace business. As the franchisor, you should know how committed a franchisee is to succeed. Off all valuable resources, time is the most precious thing that a franchisee perpetrates to make the business grow.
5. What is your stand in a leadership role/ position?
Running a business requires a lot of effort. Even if the business is structured ad administered by a group of authority leaders, it requires a subset of leaders to operate. This subset calls for skills to manage, and instruct people working in the business.
6. What are your plans for marketing?
No matter what the set modules of the business a franchise may be, the franchisee still needs to have what it takes to attract customers, connect with them and convert them into a loyal customer base. Creating a customer base is the key to a prosperous business. The business structures and ways would not come to act if there is no opportunity created for finding the customer. Here, the location also plays a major contributor to the same.
7. How supportive are your acquaintances and surrounding people with your decision of franchising?
Getting started with a franchise is starting a business and often requires a single-minded focus. Lack of support by an interviewee’s partner and family may strain their franchise operation, not to mention his or her personal life. Getting buy-in is important.
8. Where do you want to locate your business?
A business location can be a deciding factor for the business’s fate. Often, the geographical location and the demographics of the population are within the reach of the business from the customer base.
For example, a location that majorly constitutes Jews would encourage Kosher food outlets. However, setting up a non-kosher outlet can significantly cause failure in the food business. A background check and a market analysis are necessary before deciding on the location of the business.
9. How are you planning the finances for the purchase of the franchise?
It’s possible in any business to not make a profit in the first year. Be sure the franchisee understands the start-up process. Consider coming on board armed with a financial plan and cash reserves to support yourself and the business as it gets started.
10. What are your long-term goals?
Visions and goals can speak for themselves and the person. For an entrepreneur, it becomes crucial to plan long-term and short-term goals. By becoming calculative of every step, one remains prepared to face challenges irrespective of the time.
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