Choosing the right franchisees is one of the most important decisions you’ll make as a franchisor. A franchisee is not just an owner — they represent your brand to customers, manage teams, and ensure profitability. Selecting the wrong franchisee can have far-reaching consequences affecting your brand reputation, customer experience, and employee retention.
Not all franchisees will have a background in management or business, but the right skills and mindset can help make them successful. In this article, we’ll review what you should look for when considering a new franchisee and how to attract the right candidates to expand your franchise.
Why choosing the right franchisees matters
A great franchisee helps build your brand’s legacy, while a poor fit can undermine it. Some factors that can be impacted by your choice of franchisee include your:
- Brand reputation: Every franchisee becomes an ambassador for your brand, directly impacting how the public perceives it.
- Customer experience: Franchisees (and the teams they hire) are on the front lines, so their management and customer service skills determine how satisfied customers are.
- Profitability: A franchisee’s business acumen and management style are key factors in whether their location thrives or struggles.
- Employee satisfaction and turnover: The way franchisees lead their teams will affect employee morale and retention, and high turnover can be costly both in time, resources, and impacts each of the above areas.
Clearly, you don’t want to let just anyone represent your brand and expand your business. Let’s go over some of the skills that you might want to look for when choosing franchisees.
Five skills to look for in new franchisees
Ability to inspire and motivate
Great franchisees are more than just managers — they are leaders. When employees feel valued and motivated, they are more likely to be engaged and deliver superior performance. A franchisee who cultivates a positive, team-oriented environment can create a ripple effect that drives success.
It’s important to point out that some franchisee candidates may not have much real-world experience with managing employees. This doesn’t mean that they don’t still possess valuable leadership skills. It’s almost important to consider the potential of any franchisees and how you might be able to support their development.
As founder and CEO of CareerPlug, Clint Smith, shares, “You have to show them how to lead. Many franchisees haven’t been in leadership or management positions before. It’s about the attitude they take with their employees. Do they make people feel like they have more than just a job and that they are valued?”
Willingness to trust and delegate
One of the most important skills for franchisees is recognizing that success is a team effort. When a franchisee gets too caught up in working in the business, they don’t have time to work on the business. And trying to micromanage every aspect of the business can lead to burnout and inefficiency.
Franchisees who trust their staff and delegate responsibilities are able to focus on growing the business and delivering on strategic objectives. You can help here by emphasizing the importance of a strong hiring process when it comes to finding employees your franchisee can trust.
You can set your franchisee up for success in this area by offering a hiring and retention solution like CareerPlug as a resource. CareerPlug can help your franchisees attract higher quality candidates, so they can build a reliable team.
Alignment with your brand
Franchisees must align with your core values and company culture, as these are essential parts of your brand. When a franchisee understands and believes in your mission, they are more likely to replicate your success across their location(s).
During a recent webinar, we discussed the importance of core value alignment, not only for franchisees, but for potential employees as well. Strong core values can make it easier for your franchisees to hire the right people for their team. You can revisit that conversation here and learn other ways to save your franchisees time and money:
Flexibility to roll with the punches
The business landscape is unpredictable, and a franchisee’s ability to adapt is crucial. Whether it’s managing supply chain issues, handling customer complaints, or navigating economic downturns, franchisees need to be flexible and resilient. Look for candidates who have a history of problem-solving under pressure.
Exceptional customer service skills
Ultimately, customer satisfaction is the backbone of any successful franchise. Franchisees must have a customer-first mindset and be able to train their teams to provide excellent service.
There are a variety of ways that potential franchisees might gain customer service experience. Dig into their background and experience and ask them questions that can help you get a better understanding of their customer service skills.
How to attract the right franchisees
Attracting franchisees with these key skills can significantly boost your brand’s success. Here are a few strategies to help you find those top-tier candidates:
- Showcase your star franchisees: Highlighting successful franchisees in your franchise development efforts demonstrates what makes a great partner.
- Launch a referral program: Encourage your existing franchisees to refer people from their networks who may be a great fit for your brand.
- Set clear manager expectations early: During the Discovery process, ensure prospective franchisees understand your expectations for management and leadership.
By focusing on these essential skills and qualities, you can build a network of franchisees who will take your brand to new heights.
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