You’ve done your homework. You’ve read, you’ve researched, and you’ve narrowed it down to one or two franchise systems that meet your criteria. All that’s left to do is make your final decision and sign on the dotted line… right?
Not all franchise buyers realize that franchises are not simply “sold,” they’re awarded. Each franchisor has a particular set of criteria that a prospective franchisee must meet in order to be approved for a franchise purchase. Even once you’ve decided that a specific brand is the right one for you, there’s no guarantee that the franchisor feels the same.
So how do you put your best foot forward?
Know your strengths… and your weaknesses
Take a hard look at your skills and experience to identify what you’re great at. Evaluate how your strengths will translate into success within the franchise system, and be prepared to articulate this throughout the discovery process. This is not the time to be humble! Demonstrate to the franchisor that you understand what success looks like within their business model, and that you have the skills to achieve it.
Toot your own horn, but be sure to temper this with a healthy dose of self-awareness. We all have weaknesses, and it’s important that you know yours. Address how you’ll navigate these gaps as a business owner and discuss your weaknesses from a solutions-based perspective. Talk about how you’ll hire a team whose strengths compliment your areas of weakness. Outline how you’ll leverage the franchisor’s resources to level-up in the areas where you’re not as skilled. By highlighting your strengths and addressing your weaknesses in a constructive way, you’ll present yourself as a well-rounded, transparent, and coachable franchise partner.
Respect the process
Franchises are built on systems and processes that have been carefully curated over time to drive success. The franchisor has tried and tested everything so that you don’t have to. They’ll provide you with a roadmap to success; show them that you can follow it.
Just as franchise operations are carefully structured, so is franchise recruitment. Franchise recruiters manage many interested candidates and deliver a huge amount of information to ensure all parties can make an informed decision about the business. There are systems in place to ensure nothing is overlooked during the discovery process, and following these systems benefits everyone. If you skip steps, rush timelines, or shirk homework, you are doing yourself a disservice and raising a major red flag for the franchisor. If you’re already challenging the process at this early stage, why should they trust you’ll follow their systems as a franchisee? Work with the system, not against it.
Be Prepared
Demonstrate that you have a deep understanding of what it takes to succeed in the franchise system by getting to know the business really well. The franchisor will provide you with resources to support your due diligence: use them! Secret shop the brand. Read customer and employee reviews online. Thoroughly review the Franchise Disclosure Document and any other resources the franchisor supplies. Talk to a wide variety of franchisees about their experiences. Ask questions, and then ask more questions!
Once you have a firm grasp of the franchise business model and what success looks like, apply your learnings. The franchisor (and your bank) will expect you to prepare a business plan. Get a head start on this during the discovery process: complete a SWOT analysis, a break-even analysis, and projected budgets for a variety of scenarios. Then, use your business plan as a tool to demonstrate to the franchisor that you are serious about the franchise opportunity and the risks and rewards that come with it.
Be Realistic
Responsible franchising is all about transparency. Your franchisor wants you to succeed, and they will help you get there, but you need to provide them with confidence that you understand the highs and lows inherent to their franchise. They will assess you to determine that you have the skills and mindset to thrive in their business model, and that you have the grit to weather any storms you might face.
Clearly communicate your ambition and optimism, but make sure it’s grounded in reality. Do you understand the amount of work you’ll need to put in while you get the business off the ground? How might this change as the business matures? What will you do if it takes longer than you thought to break even? How will you turn things around if your business is underperforming? Define what success looks like to you, understand the various obstacles you might face along the way to that goal, and communicate this to the franchisor.
Believe in Yourself and Your Franchise
Purchasing a franchise is a big decision. Do your homework and help the franchisor get to know you so that you can decide together if there’s a mutual fit. You want to align yourself with a franchisor who will protect your investment by building a franchise system of like-minded franchisees who share the organization’s vision, culture, and operational requirements. Give the discovery process the time and consideration it deserves to ensure a healthy long-term partnership.
Mackenzie Allsop
Account Director
Cadence Franchising