Items to Discuss with Franchise Candidates

-A Franchisor Perspective.

Each franchise organization has what it considers to be the “ideal” candidate. And this post does not attempt to imply to know what that particular candidate looks like. However, there are some universal factors all franchisee candidates should be aware of. Discussing these factors only builds confidence that franchisee success is truly the focus.

Franchise Network Factors

Varying degrees of onboarding and training efficiencies reside with the franchising community. But, wherever the organization stands, it is important to take the time to discuss the benefits of the current status of the network factors that have an effect on the franchisee initial growth rate and success. These factors include:

  • the selection process
  • how territories are selected
  • type of location development assistance
  • supplier introductions
  • grand opening processes or announcements
  • marketing support
  • training & coaching initiatives / Manuals
  • monitoring and supervision

Financial Factors

The financial cost of the franchise business cannot be ignored. To build the business, candidates need to understand, at minimum, the following expenses:

  • fixed costs
  • variable costs
  • franchisor fees
  • profitability matrix

Personal Attributes

Of course, understanding the personal attributes of the candidate, and the relationships s/he has to grow the business are good indicators of the probability of success. Discussing these attributes is an important part of understanding the candidate.

  • entrepreneurial spirit
  • perseverance
  • administrative/leadership abilities
  • established network
  • franchisor/franchisee relationship expectation

Regulatory Factors

regulatory issues may be new to the candidate, so state and local factors cannot be overlooked when seeking to grant a franchise. These maters include:

  • state/county regulatory
  • license requirements
  • local costs
  • local labor force
  • knowledge/awareness of the franchise business


Many factors influence the successful granting of a franchise. As a franchisor, you ability to help franchisees understand the management, financial aspects and daily operations of the business, and the services the franchisor provides to help achieve franchisee satisfaction, builds their confidence in you model. And, each encounter provides franchisor’s the opportunity to evaluate, and improve, the process.

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