Finding a suitable candidate

In short, how does the process of selecting a franchisee work?

It takes place in several stages. The first step is establishing contact and exchanging information, usually via email or a phone conversation. The franchise candidate asks a question, and the supplier responds by sending them a franchise brochure or other promotional materials from which the candidate can learn more about the system and the terms of cooperation. After a preliminary exchange of information, both parties assess whether they meet the basic criteria and, most importantly, whether they are still interested in cooperating. A meeting is then arranged where the terms and expectations of both the franchisor and the potential franchisee are discussed in detail. The meeting also has a psychological aspect, namely, that only now both parties have the opportunity to create the premises of a possible partnership.

What qualities in candidates should the franchisor focus on during negotiations?

The compatibility and cooperation possibilities are evaluated by both parties. Just as the franchisor has an image of his ideal partner, so the potential franchisee certainly has a set of qualities that he expects to find. For example, we can say that the ideal franchisor is one who has a well-designed franchise package and professionally prepared informational materials. Also, who is transparent, knows how to present and explain the financial aspect of the business, the elements of the franchise agreement and knows exactly what kind of partner they are looking for. On the other hand, the franchisee should be enterprising, show a certain degree of commitment, enthusiasm, but also be able to adhere to the principles and rules of the system. 

Ultimately, to properly evaluate the other side, it's best to have something to compare the information with. Therefore, we advise potential franchisees to search for information on the Internet, visit the franchisor's branch, talk with their partners, and browse what is written on business forums.

Where can potential franchisees be informed about available systems?

Fortunately, today there are specialized magazines and portals dedicated to franchising. There are channels that, in addition to market news, also contain presentations of various franchise systems. These are all good sources of basic information about franchises. In some countries there are professional franchise associations or federations. However, the most comprehensive information can be found at franchise fairs. In addition to a large number of franchisor exhibitors and the opportunity to talk directly with company representatives, the fair is actually an ideal place if we want to compare the offer of competing brands and franchises in the same industry. Last but not least, trade shows often hold informational and educational workshops on franchising; events that can help people who want to learn more.

What should you pay attention to when making a final decision?

Both parties should pay close attention to the franchise agreement. The supplier should first have a professionally prepared contract and then an operating manual. It should also be prepared for all the next steps regarding the entry of a new partner into the network, that is, be prepared to provide all the necessary help and support - as guaranteed by the contract. The franchisee, on the other hand, should read and study the contract carefully. We do not recommend that the decision be made solely on the basis of the promotional material, but we advise you to pay the utmost attention to this legal document. In a good franchise system, you should have no problem getting a contract to study before making a final decision!