"IN MY OPINION"

By David Kilby

To Be Or Not To Be
- A Franchisee

Reprinted from the February 1997 issue of Successful Franchising

Mr. David Kilby
Vice president of Franchise Development
Cousin’s Subs.

Franchising may not be for everyone. To bridle the entrepreneurial spirit under the reins of a franchisor might not be a realistic expectation, so it’s important to investigate before investing in a franchise opportunity.

It should first start with a determination that franchising is a viable vehicle for your personality. Will this be a match made in heaven? Or hell?

In my nearly 30- year association with franchising, I am constantly amazed that individuals who might express no particular interest in people would think they can be successful in a retail type business.

True, most franchisors will extol the virtues of their very "teachable" concept, but to teach the franchise candidate a full array of "people skills" during the customary two-to-four week training period is unrealistic.

Franchisors today are looking more seriously at the profiling of franchise candidates prior to their selection. Profiling not only lets the franchisor have an early snapshot of the success tendencies that the candidate may demonstrate toward their particular franchise, it also gives the franchise candidate a third party opinion of their success tendencies. There are several tools on the market today to help franchisors assess the success potential of a franchise candidate. If you're intending to invest in a franchise, you should seek out these tools. Look for franchisors who administer these tools before they ask you to invest in their opportunity.

Other profiling tools used by many franchisors are word association questionnaires or surveys. These tools reflect the franchise candidate's preferred environment and the candidate's likely behavior in a franchise system.

One such profile, distributed by Dynamic Performance Systems, provides the franchisor with insight about the candidate's ideal environment, whether it be within a mature franchise system, an evolving system, or a new system. In addition, insights include the level of support expected or required by the candidate, the candidate's service vs. task orientation, as well as adherence to the franchise system, people orientation, attention to detail, dispute resolution, and major motivators. The profile goes on to provide coaching and training suggestions should the candidate become a franchisee.

Franchisee selection has long been considered an art form by franchisors. New franchisors may rush into a selection process in hopes of signing a franchisee. However, long-standing franchisors understand the value of a formal selection process which includes a personal interview with the candidate at the corporate headquarters, and a more organized selection process.

Recognizing that there is no perfect solution to the selection process, the blending of art and science increases the odds for both franchise candidate and franchisors in the matchmaking experience. A wrong choice might be devastating to the candidate and costly to the franchisor in terms of front-end support, i.e. real estate, site selection, training, and litigation if the relationship does not mature to full-term of the agreement.

It would, therefore, seem to be in each others' mutual best interests to take whatever steps necessary to make a wise selection.

Whether your franchise interests are in the $30,000 or $1-million range, the question still needs to be answered: To be or not to be a franchisee? Don't take the question lightly, and don't sign up with those who do!