Article Sphere Logo

Franchising Your Business and What To Look For In Franchisees

By Expert Author: Naz Daud | Article Abstract
Word Count: 501 words | Views: 180 view(s)
Franchising your business can help you to achieve scale much quicker than you would otherwise be able to. It also means that you won’t have to raise as much debt and equity financing as if your business decided to go it alone. But, even if you’re sure that franchising is right for your business, how can you be sure that the franchisees that you choose are right for your business? This article takes a look at how you can screen your franchisees to ensure they don’t damage your brand and jeopardise your growth. The article focuses on franchising where the franchisee is a person, rather than a company, and they intend to take an active management position.

Creditworthiness

It’s important to ensure that your franchisee is creditworthy for two reasons. Firstly, it shows their willingness to fulfil their obligations historically, and could be a sign of how trustworthy they are. Secondly, you can use this information to check how likely it is that they are to be able to afford on-going payments they make towards to your business. You can also find out how much assets they have, and the degree of leverage they will be using to purchase the franchise. The more leverage, the more likely things could go wrong. However, just because things aren’t looking great historically, and they’re low on assets, doesn’t mean they can’t contribute. It’s about getting the mix right between prudence and flexibility.

Track-record

Although you are looking for a business partner, and not an employee, many of the rules are the same. If someone has a history of high job turnover, poor attendance, and long periods of unemployment then they are probably not the optimum candidate for a franchise opportunity. When you’re franchising your business, and you’re looking to get the best people in place, these are factors you should definitely consider. Another factor is their relevant experience for the job they will do. If you’re franchising a plumbing business, for example, then if the person has experience and qualifications in this area then that could work well. Management experience is something that’s not always necessary, but it can be important too.

Depending on the type of franchise you’re selling, it will usually be worthwhile doing a criminal background check, and other similar checks.

Passion and Drive

It’s important that your franchisees are both passionate and driven. This will mean that they will drive higher revenues, you’ll get higher management fees, and they’ll be happier at their job. It also probably means they will contribute more towards your brand.

Most businesses know they want people like this, but finding them can be another matter altogether. Ensuring that you are disciplined in who you are willing to work with is the first step, and the second is encouraging franchisees yourself. The franchising manager should maintain a good dialogue with franchisees, and provide them with the support they need to remain highly determined to be successful. Ultimately, you and the franchisee both play an equally important role in their success.
 Naz Daud

About the Author/Author Bio

CityLocal business directory offer franchise opportunities for franchisees looking to get started in the lucrative internet advertising business. www.citylocal.co.uk and www.citylocal.ie

Article Source: http://www.articlesphere.com/Article/Franchising-Your-Business-and-What-To-Look-For-In-Franchisees/159023

Article Submitted: 2008-08-07 | This Article has been viewed 180 times.

Rate Article

Related Videos

Franchisee Tips: What to Look for in a Franchise
Small Business Advice - Franchise and Royalty Fees
How to Start a Franchise
How to Get Started in Franchising
Small Business Advice - The Pros Cons of Franchising
 

More "Franchise" Related Articles

 
 

Listed below are more articles related to the above article from the "Franchise" article category.

People interested in the above article "Franchising Your Business and What To Look For In Franchisees" are also interested in the related articles listed below:

 
Franchising has been one of the best ways in starting up a business because of the benefits it offers to both franchisors and franchisees. In starting up a business, you may want to consider buying a franchise from an already well-established company. Franchising is a method of expanding a business where a company gives another but usually smaller company or an individual the license to utilize their established business formula and brand.
Do you love the tan? Are you craving to have one? For sure, you can. People are very much engrossed with any activity which can result to a natural tan. Exposure to the sun is one of the biggest medium one could ever make use of in order to get a tan. But of course, you must take some things seriously.
Children's franchise offers a wide range of advantageous services to children and their parents. Parents are often offered guidelines on caring and educating their children through Children's franchise. Franchises for children sometimes employ very efficient people like qualified nurses to take care of the children properly. There are different kinds of franchises for children that offer fruitful services to the parents for growing up their children in a healthy manner.
The realization that starting a day care is a pretty enormous task slams into you as you slide your resignation across the desk to your ex boss. Weighty questions must be tackled, decisions must be made e.g. Montessori day care or Steiner, daycare franchises or go it alone and the to do list continues to grow.
There are literally hundreds of options when considering a retail clothing store startup. Franchising may be right for those who have the entrepreneurial bones, but are not necessarily filled with new ideas. Getting a business off the ground takes an enormous amount of time and planning. Instead of reinventing the wheel it may make more sense to purchase a retail clothing store franchise. Whatever you are interested in a franchise exists from shoes to lingerie. This article will examine some pros and cons of this style of business model.
If you’re starting a business, you may have considered purchasing a franchise rather than starting a company from scratch. This is particularly common in certain sectors, and has many solid advantages over starting a business on your own. However, before you commit anything, it’s important that you ask the franchisor the right questions to get to grips with exactly what you’re going to be buying.
When rapid business growth is on the menu, you might be considering franchising as a way to sky-rocket infrastructural development and revenue acceleration. For many this is a good choice, however for others it just isn’t going to work. In this article we explore traits that make your business model suitable for franchising, and therefore allow you to put more thought into whether it’s right for your business.
 
Article Directory Home All Categories Business Franchise
 

Can't find what you're looking for? Try Google Search!
 
Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at ArticleSphere.com™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.

Afrikaans Albanian Arabic Belarusian Bulgarian Catalan Chinese (Simplified) Chinese (Traditional) Croatian Czech Danish German English Estonian Filipino Finnish French Galician Greek Hebrew Hindi Hungarian Icelandic Indonesian Irish Italiano Japanese Korean Latvian Lithuanian Macedonian Malay Maltese Dutch Norwegian Persian Polish Portuguese Romanian Russian Serbian Slovak Slovenian Spanish Swahili Swedish Thai Turkish Ukrainian Vietnamese Welsh Yiddish