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Turning Candidates into System Franchisees
Franchising World, February 2007
Establishing a system that helps candidates make good business decisions will improve the quality of the new franchisees and provide a solid foundation for a lasting, productive relationship. By Stephen Dunn, CFE Today’s proliferation of franchise opportunities affords prospects more choices than ever before. In this environment, it is critical to distinguish a brand in the view of the franchise candidate in a meaningful way. Utilizing a recruiting program that teaches candidates the key systems and core principals of a brand will provide the edge. The foundation of a successful franchise company rests on its ability to guide a candidate towards becoming a viable franchisee. In the classic sales cycle it is rarely important that the candidate understand all there is to know about a particular opportunity. In fact, the emphasis rests on closing the deal. While closing a deal is an important milestone it should not be the only goal. The long-term strategic view is a more accurate barometer of the health of a system. No franchise system can afford to sign up lots of “deals” only to see them falter in the long run. Candidates who become successful franchisees need to have a clear understanding of what it takes to be productive within the guidelines of that franchise system. It is incumbent upon the franchise company to take every measure to educate the candidate, to the extent the UFOC allows, on what he or she can expect once becoming a new franchisee. It is not possible for a candidate to learn every benchmark in the recruiting cycle, but it is a great benefit to start the learning experience in a proactive way. Many new franchisees learn the ropes through practical experience, guidance from existing franchisees and trial and error. Limiting surprises and setting expectations in the very beginning of the recruiting cycle lends a sense of legitimacy from the candidate’s point of view. No longer should a franchise organization do “anything” to keep a candidate in the recruiting cycle if the core principles and philosophies aren’t aligned.
Why follow a system?
Engage in the Process. Making sure the candidate is taking action all throughout the process is vitally important. Allowing the candidate to do all the listening while the franchise brand does all the action is not. The process works best when it is driven by the action on the candidate’s part, such as submitting a business plan, evaluating the operations and conducting interviews with existing franchisees, to name just a few. Those candidates who get involved and follow the process are much more likely “fits” for a franchise system.
Timely responses. Active lines of continuous communication have to be the benchmark for any franchise recruiting system. Candidates demand the respect of a professional response in a timely manner. If a candidate does not provide information in a timely manner that is an early indicator of either concern about the opportunity or shows a pattern for future behavior. If a franchise company does not stay engaged with the candidate, rest assured, a competitor certainly will.
Give information, get information. Understanding if a candidate is a good fit for a brand begins with fact finding on both sides. Franchise systems have an obligation to share all they can about their brand and the candidates have an obligation to share all that the franchise company needs to understand their history. Taking a proactive stance toward sharing information early in the process will save a considerable amount of time for both sides.
Teach versus sell. It has been said before, and is worth repeating, a franchise system that helps a candidate make a good business decision ends up with a satisfied franchisee. Understanding the philosophy of educating a candidate about a brand is a much different approach than the classic sales paradigm. The franchise relationship lasts many years and the recruiting philosophy has to reflect the commitment being asked from the candidate.
Provide full disclosure. Approaching the candidate with an “open book” about a brand will determine the level of interest right from the beginning. Why waste the company’s or the candidate’s time trying to find any information that is sensitive. An honest approach towards dealing with the ups and downs of a brand will lead toward working with better candidates in the long run because the franchise company knows they have genuine interest. Too much time and money is wasted in the franchise sales game dealing with candidates who are only shopping around for the perfect deal.
Know who the system wants. Identify the core traits a brand wants a new franchisee to possess before the recruiting starts. Franchise companies have to know what works in their system to replicate the model. Success starts with designing the right attraction strategy. Generating lots of interest is only a good thing if those candidates can be productive in a system. Drive and desire have to meet ability and attitude for a candidate to succeed.
Think strategically, act tactically. A great pyramid starts with an idea that then has to be built from a solid base, one stone at a time. A great recruiting strategy has to take the same approach. All the variables–ideal candidate profile, financial parameters, timing requirements and budget needs–have to be addressed in the formative stages during the design of the program. Franchise companies should spend quality time developing the recruiting plan before any action occurs. Following a system requires discipline but that, after all, is what a franchise system will require a new franchisee to adhere to. Establishing best practices in to a franchise recruiting model will be greatly enhanced through incorporating these principles into the system.
It’s all about the candidate? In today’s competitive franchise recruiting environment, franchise brands can’t afford to make short-term decisions that build in long-term risk. Establishing a system that helps candidates make good business decisions will improve the quality of the new franchisees and provide a solid foundation for a lasting, productive relationship. Stephen Dunn, CFE, is the vice president of development for Denny’s. He can be reached at sdunn@dennys.com.
Simply put, to get results. Results come from a system that can be planned, measured and adjusted as needed to meet the needs of the candidates and the goals of the franchisor. There are some key principles to adhere to when creating a program that gets results. Here are the basics and a brief description.
The charge of every franchise company desiring to expand boils down to finding and retaining the right candidate. But is it all about the candidate? Clearly many systems build their sales strategy around that premise. However, having a “come one, come all” philosophy is a preview for future problems. The balanced perspective incorporates the needs of both parties–what the franchise company needs to accomplish and what the candidate hopes to accomplish–to establish a winning decision. Bringing onboard a new franchisee who has the right attitude, work ethic and skill-set provides the greatest chance for a successful relationship.
