14 Important Do’s and Don’ts When Buying a Franchise

If you are in the market for a franchise you will find franchisors tend to take a variety of approaches to the recruitment process.

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A company with a popular brand, a profitable business model and happy franchisees will have a steady stream of people wanting to buy a franchise. For this reason they can afford to be choosy. 

Other franchise companies with less well-known brands or new concepts will naturally attract fewer enquiries. This does not necessarily mean that their franchise offer is any less valuable. All successful franchise networks started as small, unknown entities. And getting in early can mean less competition and better returns. However there will be greater risks when dealing with a less well-established franchise concept.

Franchisors that are growing rapidly will be keen to attract good quality franchisees quickly. However they should still be fussy about whom they choose. Be wary if the person you are talking to seems overly desperate or tries to manipulate you through high pressure sales tactics such as “if you don’t sign up now you are going to miss out”. Some franchisors are under-capitalised and fund their expansion through the sale of franchises. This is a dangerous and misguided approach that inevitably leads to a lowering of recruitment standards, which is not in your interests.

Once you have short-listed a franchise system of interest to you, find out the franchisor’s recruitment process. Most reputable franchisors will have a structured process and will be pleased to explain the steps involved. This is where you and the franchisor “suss” each other out to see if there is a good fit between your needs and expectations and their requirements for a franchisee.

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Do's and Don'ts

Ideally there should be mutual enthusiasm for each other. Here’s some tips to help you through the recruitment process.

  • DO position so the franchisor can help assess whether give an accurate estimation of your financial this is a realistic investment for you.
  • DO NOT Being short of funds is a sure way to go broke in the exaggerate how much money you have.early stages of the business.
  • DO Be yourself and say it like it is. If you are confused give direct, factual and open answers to questions.by a question or want to know its relevance ask for clarification. The franchisor will respect your honestly.
  • DO NOT be asking specific questions for a reason. be vague or skirt issues. 
  • The franchisor will DO initially be judged on how thoroughly you respond. Complete application forms thoroughly. You will Remember also the franchisor will be keeping this form on your file if you proceed.
  • DO NOT put in the form may come back to haunt you if it is not leave sections blank or exaggerate. 
  • DO Also if you should bring anyone or anything, and who ask how meetings or interviews will be structured.from the franchisor will be in attendance. Be prepared.
  • DO NOT going to be about or the issues that will be covered. If assume that you know what a meeting is you are caught by surprise you may come across as clumsy or incompetent.
  • DO you are well groomed. Treat the meeting as an come dressed in neat casual clothes and ensure informal business meeting. The franchisor will be looking at you as a possible representative of their brand so ensure you fit the image.
  • DO NOT overly formal. Franchisors may either think you are not come dressed like you are on holidays or taking the business opportunity seriously or that you don’t understand their brand.
  • DO structured interviews, panels, profiling questionnaires cooperate with any assessment procedures such as or reference checks. These will help the franchisor to determine your strengths and weaknesses so they can more effectively train you if you proceed.
  • DO NOT back on giving referee information or try to make try to fake profiling questionnaires, hold yourself out to be something you are not.
  • DO franchisor representative (not too friendly) and tell maintain a professional relationship with the them to back off if you feel they are pressuring you to make a decision before you have the answers to specific questions or concerns. Allow yourself time to adequately research the company and its existing franchisees.
  • DO NOT fear or excitement from something you have just seen make decisions out of a sense of obligation, or heard. Remember this is a long-term commitment that you will have to live with long after your emotions have settled down. And the person that sells you the franchise may not be around in the future.

A reputable franchisor, regardless of size, will always be looking for people with the qualities and commitment to implement its systems, look after its customers and help to build its brand. It will consequently treat the recruitment process with the care and consideration that it deserves. I encourage you to do the same.