Vetting a franchisor is an intense–and sometimes intimidating–process. After all, you’re considering investing tens or even hundreds of thousands of dollars, not to mention a significant portion of your time, in their business model. It’s important to take the process seriously: review the franchisor’s disclosure documents in detail, meet with existing franchisees and the company leadership, and ask hard questions. But as you’re doing these things, be aware that you’re not the only one doing the vetting. You may be looking for a franchisor who impresses you, but you also need to know how to impress franchisors.
This is because, although I sometimes talk about “purchasing” a franchise, the reality is that franchises are awarded. You have to convince the franchisor that you’re a good fit for their business model and culture and that you’ll be a good steward of the brand they’ve worked so hard to build. In this sense, franchising is a lot like matchmaking: each side needs to make a good impression on the other, and both sides have to be happy with the match for it to move forward.
For the last several months, I’ve published blog posts on how to make sure a franchise is right for you. This week, we’re going to flip the script and look at how to impress franchisors so they’ll give you a chance to prove that you’re right for them.
What Are You Trying to Prove?
A franchise company often lives or dies on the strength of its brand. The company’s leadership, support staff, and franchisees work very hard to build and preserve that brand. If you join the company, you’ll benefit from that hard work–it will give you credibility with customers right out of the gate and bring people to your doors. A brand is not just the logo. It’s the experience customers have when they interact with the company. So franchisors want to make sure that new franchisees are going to create a customer experience that preserves and enhances the brand.
Cultural fit is also important. Some franchise companies want quick results and expansion, while others focus on a high-end customer experience that builds loyalty. The franchisor needs to see that your background, leadership style, and individual goals match with theirs. They don’t want to award a franchise to someone who’s going to work at cross-purposes with the company.
Finally, of course, they want to know that you have the financial resources and integrity to pay your required fees and uphold your end of the franchise agreement. Even though you may feel like you’re the one making all the investment, the franchisor also makes a significant investment in you. Training, corporate marketing, support services–they all cost the company money, and the franchisor wants to know they’re going to get a return from you.
With all this in mind, here’s how to put your best foot forward and make the match.
Do Your Homework
Understanding how to impress franchisors starts with narrowing the field. Before you open direct discussions with a franchisor, do your homework. Make sure there’s really a potential fit before you start asking for disclosure documents and other proprietary information. You shouldn’t make these kinds of requests unless you’re serious about partnering with a company–and yes, they’ll be able to tell if you’re just fishing.
Doing your homework is also about understanding the franchisor on a deeper level. Just as you would do a home inspection and research the neighborhood before buying a house, so you should research a franchisor. Look at their marketing, read what analysts and business reporters are saying about them, and familiarize yourself with public financial information. When you do this kind of homework, you’ll be able to ask smart questions and demonstrate an understanding of the brand. The franchisor, in turn, will be more likely to see you as a serious candidate who will be a good brand steward and cultural fit.
Be Professional
I shouldn’t have to say this, but I do: always conduct yourself in a professional fashion when dealing with the franchisor. And I’m not just talking about interactions with company leaders. Anyone you talk to–from administrative assistants to site managers to franchise owners–may report back on you to headquarters. With that in mind, always follow these basic rules:
- Be courteous and considerate toward everyone. Speak politely to people and show respect for their work. Make requests, not demands.
- Meet all deadlines. Even better, beat them. This signals respect and serious intent.
- Be early to every appointment, including phone calls and virtual meetings. If you’re on time, you’re late.
- If you can’t make a scheduled appointment, provide as much advance notice as possible. Emergencies happen, but repeated rescheduling will count against you.
- Dress appropriately for face-to-face meetings. Business casual is usually sufficient for virtual meetings and franchise visits. For discovery days (visits to franchisor headquarters), be prepared to wear professional dress.
- If you attend a discovery day that involves social events, remember that you’re still essentially on a job interview. Have a good time, but don’t drink too much, be overly familiar with people, or discuss polarizing subjects. If you behave inappropriately toward company employees, they’ll assume you might do the same with customers.
Be Honest
With their brand at stake, the franchisor is not going to take your word for everything. They’re going to do their own due diligence and follow up on information you provide them. So don’t give in to temptation to inflate your financials, pad your resume, or pretend to be someone you’re not. More than likely, they’ll find out the truth–and nothing will sink your case faster than a lack of integrity.
Plus, aside from the fact that misrepresenting yourself is likely to be illegal, it’s not smart. You’ll just end up heavily invested in a company that’s not a good fit for you. And if the company’s not a good fit, you’re much less likely to succeed. It’s better to discover a mismatch early, when there’s still time to part ways without loss on either side.
Finding a franchise doesn’t have to be overwhelming. I’m here to help, including with the vetting process. Just schedule a call with me to find out how I can make things easier for you!
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