How does a franchisor choose its franchisees?

The franchisor should certainly not choose a franchisee on the basis that he or she has a “pulse and a cheque book”!  this does mean that when you show interest in a franchise you need to be vigilant to ensure that the franchisor is thoroughly investigating your application and that indeed it is a “challenge” to persuade the franchisor that you would make a good franchisee.  If the process is too easy with the franchisor asking very little about you, then that should sound some warning bells.  As a rough rule of thumb franchisors should only want to take forward one in ten franchise applications.

Essentially what franchisors are looking for are franchisees with access to the relevant investment (whether from their own funds or from banks) are self motivated, will be team players and not seek to create difficulties and who appreciate that running their own business is very different from being an employee – on those cold February mornings they are actually going to have to get out of bed however much they would not want to! Further, franchise owners need to be entrepreneurial but not too entrepreneurial.  Franchisors do not want franchisees who will try to work outside the limitations imposed by the franchise system.  Finally, all businesses involve selling to some extent. Even those franchises which envisage that the franchisor will obtain “national account” work for franchisees require franchisees to market themselves.

John Pratt