Tips for Working with Franchisors

As your franchise consultant my role is to facilitate your process of identifying a business that’s right for you while making sure you have the right qualities to be a successful franchisee for your chosen brand.

It’s important to remember that it takes agreement on both sides for this business partnership to become a reality. Having the desire and meeting a brand’s financial requirements are just the first step.

Franchisors, especially the top brands, receive thousands of applications every year. Their task is much like that of a popular employer that may receive dozens or even hundreds of job applications a day. They use strict qualification rules to reduce the pile to a manageable size.

Nearly all franchisors use financial qualifications like liquid assets available and overall net worth. If your profile form – they all use a financial intake document of some type – doesn’t show that you meet their minimum requirements they likely won’t want to talk further with you about buying a franchise.

Franchisors appreciate working with a franchise consultant because we bring them pre-screened candidates that meet most or all of their requirements. This has many benefits for you, the buyer. In particular, it assures that when we introduce you to the appropriate personnel at the franchisor you will be considered a serious prospect, not someone who will waste their time with uninformed questions. You will have their full attention and get detailed information of value to your decision-making process.

In addition, franchisors know that you have been prepared with detailed information about the business as well as what the requirements are for becoming a franchisee. You come to the table as an informed prospect supported by a knowledgeable advisor who can act as a buffer between you and the franchise sales staff as you gather and evaluate information.

Here are some TIPS for working with me and franchisors:

1. Treat franchisor calls like a job interview.
It is important to remember that the franchisor will be sizing you up as a potential partner while you are evaluating the opportunity. Franchises are awarded based on their evaluation of your potential to generate royalty income and be an asset to the whole organization. Good preparation for this first call is very important to your future success in being awarded a franchise.

I will send you an initial set of sample questions to help you prepare for both franchisor calls and validation calls with franchisees. Don’t forget, those franchisees you talk to will report their impressions of you back to the sales people. How they perceive you as a potential partner in THEIR business is important, too. So prepare well and treat the franchisees you talk to as future business partners.

2. Be prepared and on time for all franchisor phone appointments.
Integrity in meeting obligations for phone or online appointments is especially important to them. If you miss appointments or come to calls unprepared, they won’t feel that their brand is important to you and may refuse to sell you a franchise.

3. Prepare your “home team” to support your purchase intentions.
A franchisor will want to know that your spouse or partner fully supports you and your intention to buy and operate their franchise business. So if there is any question about their ability to respond positively and even enthusiastically to questions either on the phone or during a “Discovery Day” trip to the company headquarters, best to work those out in advance. Remember that a casual lunch with the CEO and his/her spouse is really a final “test” of your commitment to the business. A few wrong words even at that late point in the process and they may not offer you the franchise.

4. Refrain from contacting brands yourself.
To avoid confusion, duplication and unnecessary phone calls, please refrain from contacting brands or entering personal information into brand websites or search portals during the period we are working together. I will represent your interests to the brands we are working with. If you have questions please direct them to me first.

5. Tell me if you are no longer interested in a particular franchise system.
I will let them know on your behalf.