The Balancing Act of Franchising

People invest in franchises for a multitude of reasons: to be their

People invest in franchises for a multitude of reasons: to be their own boss, to improve their work/life balance; to challenge themselves; to build a valuable asset for their future, to reduce the risk and speed up the process of business ownership; these are merely a small selection. However, most people franchise their businesses for one specific reason: they know that a properly trained and supported franchisee will achieve better results in an outlet, branch or territory than a salaried manager will, which in turn will lead to greater overall growth and performance for the brand. This is certainly the case at Select Appointments.

The balancing act therefore, see’s training, support, systems and procedures on one side, and space to grow and flourish as a business owner on the other. There are many ways that this can come unstuck without careful attention; too much ‘parenting’ and the franchise owner becomes a manager; too much ‘run free and discover’ and the franchise owner becomes an entrepreneur no longer following your carefully designed business model. Add into the mix that everyone is different, with a variety of skills and motivations and you can see clearly that a one size fits all policy is never the answer. Determining what level of support a franchise owner will need to succeed and whether or not we can deliver that, starts very early in the recruitment process. 

Perhaps a little ironically for a recruitment business, our franchisee recruitment process is neither fast nor obstacle free – quite deliberately so. Our franchise owners are signing up to run their businesses for a minimum of 5 years and our investment in them is considerable, all of which means the real cost of choosing the wrong person can be very damaging to both parties. The process has to be robust, lengthy and challenging to ensure that no-one can shine brightly at stage one and find themselves a remorseful franchise owner the next day.

So how do you get it right? It’s all about asking them the right questions and listening to the questions they ask you. They often differ to normal interview type questions, because we aren’t looking out for a specific answer that meets any predetermined criteria.

For example, we need to understand if they are the kind of person who can follow instruction – franchising is built on the franchisee following a specific business model described ad infinitum in a franchise operations manual written by the franchisor. Of course, we need them to be good leaders too – capable of making their own decisions and finding solutions.

We need to know if they can make a commitment to the business ideally in excess of 5 years; if they have the support of their partners or family; what kind of lifestyle do they expect to support; how credit worthy are they; are they driven and organized enough to be their own boss yet capable of taking advice?

What impact can their answers have then? The need to be able to follow our model is non-negotiable. Imagine the fast food franchise owner who decides to dispense with the famous signature burger in favour of his own creation – his may very well taste better, but it would immediately dilute the brand. Some people have a built in need to always change the formula, which can be an incredible asset in a great many circumstances, but would not make for a good franchisee. For Select, it could mean for example a franchisee compromising standards or limiting services in order to cut costs; both of which could cause serious damage to the brands reputation in the industry and affect not just the franchisee in question’s business, but everyone in the Select Appointments network. 

So we need to get our questioning right to ensure that what we see as someone’s entrepreneurial flair for exploring sales opportunities, isn’t in fact a sign of a maverick who cannot help but reinvent the wheel! 

Similarly, an employment pattern that indicates itchy feet every two years needs to be properly explored – aside from the 5 year renewable terms, franchising offers few quick wins. It requires a lot of hard work and investment (from both franchisor and franchisee) to realise the full potential of the business in time, so we need to establish that commitment up front. 

We probably dig deeper into an applicant’s personal life than is typical. Setting up your own business is stressful and extremely hard work – even when it’s a franchise! We need to know that when the going gets tough, our franchisee won’t be going home to a partner who thinks they should never have started it in the first place. You can’t safeguard against it completely, but some careful questioning about support at home can at least highlight the issue to the franchisee. 

The entire process therefore, from managing an initial enquiry to advising the franchisee in their 20th year, requires a careful balancing act of questioning and listening, giving support and granting autonomy, applying conditions and encouraging enterprise. One thing is for sure, the right franchisee in the right franchise is a perfect recipe for success.

Read more

Latest News

Read More

Managing grieving employees: Lessons from the funeral industry

25 November 2024

Newsletter

Receive the latest HR news and strategic content

Please note, as per the GDPR Legislation, we need to ensure you are ‘Opted In’ to receive updates from ‘theHRDIRECTOR’. We will NEVER sell, rent, share or give away your data to third parties. We only use it to send information about our products and updates within the HR space To see our Privacy Policy – click here

Latest HR Jobs

Human Resources Manager Cammell Laird This is a key HR role supporting leadership and managing day to day HR operations for our large Birkenhead based

Human Resources Manager Up to £42,000 per annum benefits (including 25 days annual leave and pension) Leatherhead, Surrey KT22 7TW. Rainbow Trust Children’s Charity is

University of Greenwich – HRSalary: £45,163 to £55,295 per annum, plus £5400 London weighting pro rata per annum

Universities UK – Human ResourcesSalary: £21,441 to £24,474 per annum pro rata, dependant on experience

Read the latest digital issue of theHRDIRECTOR for FREE

Read the latest digital issue of theHRDIRECTOR for FREE