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How does a franchisor select franchisees?
John Pratt writes:
With great care - or at least they should select franchisees on that basis.
The more picky a franchisor is in selecting franchisees, the better. As a rule of thumb, for every 100 prospective franchisees only 10 are serious and of those only one or two are suitable. This means recruiting franchisees is an expensive and time consuming business, but the cost and wasted time incurred in dealing with a franchisee who is not right for the franchisor’s business is much greater.
Franchisors are looking for franchisees who have get up and go and understand that operating their own business is not like being an employee. Holidays, time off for illness and even weekends may, at least in the early days, be a thing of the past.
Having said that, franchisees must be able and willing to comply with the franchisor’s instructions. Also important are whether the franchisee has the support of their family and the financial resources - whether with or without assistance from the bank - to fund the franchise.
In addition to the above, each franchise will have its own specific requirements, so for some franchises an ability to work with your hands, having a driving licence, being willing to cold call and so on are all essential elements.
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