advice recruitment

The franchise recruitment process can be time-consuming and expensive, so it’s essential you get it right. In the dawn of the exhibition season, Alison Ledger discovers how to pitch to potentials, successfully…

A franchisor can only be as good its franchisees and so it’s vital to target, attract and select the right franchisee – something that is often a lot easier said than done! To start with however, it’s all about pulling in the punters.

Generating leads: pitch it right
Lead generation begins with “having a clear view of your preferred candidate,” says Iain Martin, managing director of Kyros. Ask yourself what are the essential attributes your franchisee should have (ie, liquid capital, hardworking), and what are the desirable qualities (ie, sales experience). The next stage is to investigate reaching this person. Iain advises looking into websites, magazines (particularly those distributed at the exhibitions) and exhibitions where you can demonstrate your business concept. He also recommends asking your existing franchisees to refer friends or acquaintances – “often the best leads you’ll get!” says Iain.

Smart Growth’s Graham Monk agrees you need to know who you are targeting, but urges franchisors to go further: “Have a target in mind, but you need to understand what makes them tick. You can appeal to their hopes, aspirations and fears, but what is really difficult is getting them to respond. You need to encourage potential franchisees to rationalise why they are buying your franchise. A great example of this is shown in Patek Philippe’s advertising campaign for its men’s watches.
 
“Patek Philippe’s watches cost around £3,000, so why would anyone buy one when rather than a Rolex or another brand for less? The advert shows a father and son with a strapline suggesting that the watch could be passed on to your son and future generations, offering a reason to buy the watch and allowing you to rationalise the purchase.”
 
So, when it comes to selling your franchise, think about what benefits your franchise will give to its owner? What are the financial rewards? Will they achieve a better work-life balance? Is it a good franchise for someone that may be close to retirement or ideal for mothers who are looking for a flexible opportunity to fit in with family life?

Managing leads
An exhibition scenario, for instance, is one of the most concentrated pitching times that any franchisor will face. Signs Express Sales and Marketing Director Tony Marsh, a regular exhibitor at the franchise exhibitions, says: “It’s always difficult at an exhibition to judge how long to spend talking to each person. I try to ask a few open questions quite early in the conversation to establish how serious they are, what’s prompted them to come to an exhibition and how much they already know about the business as I don’t want to waste time covering ground they already know.”

Tony also recommends following up your leads while they are still hot – prospective franchisees will expect franchisors to be interested in their enquiry.

In whatever circumstances, when it comes to someone parting with their hard-earned cash, it is only natural they will be questioning everything. Iain says: “In my experience it’s important, at an early stage in the recruitment process, to let the candidate know you’re not interested in just selling franchises.” A franchisor’s long-term goal is to build a strong network for franchisees, explains Iain, so careful consideration is required for each candidate.
He continues: “Franchisee recruitment is about matching square pegs to square holes, and both parties – franchisor and franchisee – need sufficient information from each other to know that there is a comfortable fit.”

Common problems
Dealing with a huge number of irrelevant enquiries can slow the recruitment process, so build in ‘filters’ to discourage unsuitable candidates from applying – eg, make clear what the total investment requirement is (and the cash you want the franchisee to have). Another option is to use ‘autoresponse’ emails to thank enquirers for their interest, provide more information and invite them to give you information.

Misunderstandings between the franchisor and candidate can arise, so good communication is vital. Sometimes using a third party to facilitate the recruitment process can often help to minimise the difficulties in this area.

Franchisors also need to be open and honest – a lack of openness can be enough to put a potential investor off. Andrew Pena, founding partner of Cubism Law says: “There is no legal requirement for a franchisor to provide sales figures. However, there is no reason why franchisees cannot request such information and make that conditional on pursuing the franchise opportunity.”
 
Inviting candidates to contact existing franchisees can be a great way to promote a transparent business, but poor feedback will be damaging, so make sure you always address any issues in your network! Most franchisors have a number of underperforming franchisees, and candidates can be told about this in advance. The challenge comes if the majority of franchisees are underperforming.

Similarly, Derrick Simpson agrees that clarity removes uncertainty when it comes to resales, he says: “The way to overcome any friction is to set out the resales process from day one and to discuss selling as part of the recruitment process.” This assures franchisees that they will be supported throughout the life cycle of the business and demonstrates that the venture is not simply about how much franchisees make each year but about “the totality of the income generated through the franchise as they grow the business” adds Derrick.

The last thing any franchisor wants is a poor performing franchisee that could cause damage to the brand. However, if you get your pitch clear and concise and establish a clearly defined process for managing franchise applicants, you’ll be on course to securing a prosperous and happy network.