As a franchise consultant, a question I commonly hear is “What mistakes are frequently made when franchising your business?” In last month’s Blog, we listed some blunders to avoid when franchising your business:
- Selling too many franchises too quickly when first franchising your business
- Not requiring Franchise Owners to complete the initial training program
- When franchising your business, allowing a Franchise Owner to pick a substandard site
- Jeopardizing the brand, name and reputation when franchising your business
- Awarding franchises to the wrong people
In last month’s Blog, we discussed the first three mistakes listed above. This blog concentrates on mistakes (4) jeopardizing the brand, name and reputation when franchising your business and (5) awarding franchises to the wrong people.
Compromising the brand, name and reputation can be a huge misstep when franchising your business.
You are entrusting your brand to the new Franchise Owner; you hope the Franchise Owner will help you build the name, develop a new customer base and protect your image.
When franchising your business, you must remain diligent to ensure that all Franchise Owners are following your system, supporting the brand and conveying the desired message to their customers and communities. A Franchise Owner with a sloppy operation can undermine the brand and the revenues not only at the individual location but also at other franchises.
Awarding franchises to the wrong people can cause substantial problems when franchising your business. A Franchise Owner must meet your financial criteria.
But there are other considerations as well: does the person have the time, desire, drive, personality, skills, maturity and energy to properly operate the business? If particular skills or licenses are needed, does the candidate meet those qualifications? Does the prospective Franchise Owner support your company vision, direction and philosophy?
Experience, education, life circumstances, credit scores, criminal background, market knowledge, personal and business references and character will all impact the likely success of the individual Franchise Owner.
In order to obtain the most informed opinion of the candidate’s potential, we recommend the following steps: (a) a short form application to screen out obviously unqualified applicants, (b) a more detailed application to ensure the applicant meets your qualifications, and (c) spending time to get to know the potential Franchise Owner. These steps will ensure that when franchising your business, you entrust the future of your program to fully qualified people.
We hope that addressing in these two Blogs five common mistakes Franchisors make will help you get off to a more successful launch and avoid missteps that could undermine your success when franchising your business.