Franchisee selection and recruitment is on of the most important factors of developing a sustainable franchise network. However, many franchisors do not have a clear franchisee recruitment process to successfully recruit and select franchisees
Below are 14 steps on how successfully recruit and select franchisees
1. Pre-recruitment phase
- Ensure that all the necessary documentation for franchisee recruitment and initial support are in place i.e. Franchise Agreement, Disclosure Document, Prospectus, training program and material.
- Commence with promotional drive to find prospective franchisees
2. Receive enquiries from prospective franchisees
- Enquiries from prospective franchisees are being received and captured on database
3. Send Prospectus and Application form to prospective franchisees
- If the prospective franchisee is in areas of targeted development, send the Prospectus and Application Form or have an information session to present the opportunity
4. Conduct initial screening
- Once the completed Application Form is submitted and the initial impression is favourable, initiate a creditworthiness check (ITC), make sure the applicant has the necessary funds available and that they are applying for an available area.
- Depending on the outcome, proceed to next step or send a rejection letter
5. Proceed to psychometric testing: The E-test
- The E-test is an online psychometric solution to scientifically assist with franchisee selection.
- This will assist in determining the franchisee’s profile, conducting meaningful, informed interviews, determining development needs upfront and ensuring higher potential for accurate selection
6. Sign Confidentiality Agreement and proceed to Interview
- A prospective franchisee signs a confidentiality agreement and is invited to a formal interview during which prospect’s questions will be answered.
- Some brands give prospects the opportunity to spend a day at a company-owned outlet which is followed by working at the outlet for observation and feedback
7. Provide prospective franchisee with Franchise Documentation
- The Franchisor provides the prospect with the Franchise Disclosure Document and unsigned Franchise Agreement
8. First waiting period
- The franchisor needs to wait 14 calendar days after providing prospect with the Disclosure Document.
- If prospect wishes to proceed, the Franchise Agreement may be signed
9. Prospective Franchisee signs the Franchise Agreement
- Prospective franchisee signs the Franchise Agreement
10. Second waiting period
- The Franchisor needs to wait 10 business days after the Franchise Agreement is signed.
- If the Franchisee wishes to continue, they must indicate so in writing and pay the upfront fee and the balance of their own contribution into a trust account (this ensures transparency and security that funds won’t be misused)
11. Review Business Plan and Financial Assistance
- The franchisor in cooperation with the franchisee needs to review and customise the Franchise Business Plan.
- Assistance to be given to secure finance, if applicable
12. Commencing with Franchise Launch Proceedings
- The franchisee should receive assistance with lease negotiations/finalisation.
- For a new unit: Franchisor handles project planning and control. Work on new unit is set in motion according to the Pre-Opening Checklist.
- Franchisors can assist in securing, hiring and training of staff members
13. Operations Manual and Training
- Franchisee’s initial training commences, and Operations Manual is issued and/or access is secure to online platforms
14. Ready to Operate
- The Franchisor reviews the franchisee’s readiness to operate the outlet.
- Commissioning of fittings and equipment is undertaken.
- The franchisor issues “Certificate to Commence Trading”
At Franchising Plus, we can provide assistance to Franchisors with the recruitment process:
- Franchise Planning Process
- Franchise Package Development
- Advice on the recruitment process
- Recruitment Services