In this article published by Entrepreneur, iFranchise Group CEO Mark Siebert reviews the type of potential franchise buyer that franchisors should avoid as they franchise a business.
Siebert notes that In franchise sales, while finding candidates with entrepreneurial spirit is desirable, franchisors should beware of those entrepreneurs who are more rule-breakers than they are rule-followers.
These words of caution are especially true for emerging franchisors who are selling their initial franchises. These early franchisees will often set the stage for each subsequent franchisee that joins the system, and can ultimately help validate the franchisor for additional candidates as they enter the sales pipeline.
That said, franchisors of all types and sizes would be well-advised to ensure that they establish and follow a franchise sales process that is broken down into several manageable steps. This process should be set up in a logical, sequential format, and allow the franchisor to effectively vet candidates based on set criteria — including their willingness to follow systems.
The article also details the red flags that can help a franchisor identify a franchise candidate who might be “too entrepreneurial,” and therefore not an ideal fit to join a franchise system.
In the end, selling franchises is about more than just accepting a check for the initial franchise fee; it is about establishing and maintaining a long-term franchisor/franchisee relationship. So, franchisors who select the right franchisees from the start are much more likely to see the success of their franchisees drive the success of the system as a whole.