Do You Have The Franchisee Qualification Secret Weapon?


The one that helps you:

  • Increase franchise sales,
  • Increase profitability,
  • Lower recruitment costs,
  • Have happier franchisees,
  • Increase royalties?

Or do you use the "traditional" franchise qualification model? One that leads to:

  • A large number of low quality applicants.
  • Wasting time working with unqualified and unresponsive leads. High recruitment costs. Decreased profitability.
  • Unnecessary lawsuits, and Unflattering media exposure.

The traditional franchisee selection process
A "traditional" franchisee recruitment process focuses on going for the "low hanging fruit" - targeting as many applicants as possible, and having staff follow up with all the resulting applicants. After all, the more applicants your recruitment staff talks to, the better the chance for increasing sales, right? Actually, that's wrong. Instead, what happens is your staff ends up wasting time and money dealing with unsuitable applicants.

The intelligent franchisee selection process
The intelligent franchise recruitment process fine-tunes the franchisee qualification process. Instead of your staff wasting time with unsuitable applicants, they can spend their time where it matters most.... closing the deal with qualified candidates. That's the intelligent way to increase franchise sales, increase profits and actually lower recruitment costs.

Imagine how nice it would be knowing that your operations people won't have to fight unruly franchisees. Instead, they'll be able to spend their time doing what they do best --- supporting the franchisees that are committed to their business and want it to grow. Franchisees you'd love to have as part of your system. Ones that do what it takes to be successful which leads to increased royalties.

By following the Dynamic Franchisee Qualification Process three-stage process, you will:

  1. Weed out unsuitable applicants.
  2. Select the best of the remaining applicants.
  3. Accurately predict the performance of your franchise candidates

Why use a 3-stage process? To put it simply, no matter what franchisee selection method you use, it can always be improved. That's why the Dynamic Franchisee Qualification Process 3-stage process includes measuring:

  • Franchise relevant personality attributes.
  • Franchise specific behaviors.
  • Franchise specific situational judgement, attitudes and beliefs.

Now that's intelligent! Using the best of several ways to select franchises instead of just one.

Makes More Effective Use Of Current Staff
I should point out that the Dynamic Franchisee Qualification Process does not replace your recruitment staff. Rather, it increases the effectiveness of your entire franchise recruitment team while helping you increase franchise sales. In essence, the Dynamic Franchisee Qualification Process reduces your cost per sales by helping you know which candidates are worth your time and energy.


"Financial and business experience requirements are not that complicated to evaluate in a prospective franchisee. Background checks, too, are rarely cumbersome. Our challenge has always been evaluation of the candidate on the basis of "people skills" and "management style" to predict performance.

We subscribed to the FranchiZe Profile to assist us in selecting franchise candidates that more closely resembled our most successful franchisees and to be more objective in the selection process. We're extremely pleased with the results.

One of the most beneficial results of the profiles has been the "training guide" which has been of tremendous assistance in tailoring training for the specific individual."

Mr. Phillip (Phil) M. Lewis, Jr., Skyline Chili, Inc.

 

A Relevant Personality Characteristic
Although most other standard, "out-of-the-box" personality characteristics have even less ability to accurately predict performance of franchisees than they do employees, the one personality characteristic that *does* have an impact on franchisee performance is "Conscientiousness".

That's why the first tool in the Dynamic Franchisee Qualification Process, the Franchisee PreQual Assessor, measures "Conscientious" ("Detail Orientation", "Organized vs. Disorganized", "Planner vs. Spontaneous" and "Proactive vs. Procrastinator"). Because franchisors also want to know if their applicants have integrity and can keep calm when facing irritable customers, we've also added "Integrity" and "Lifestyle Motivation" into the mix.

We recommend Franchisee PreQual Assessor be used at the "first touch" with an applicant. For instance, when the applicant completes the franchise application.

Measuring Behaviors
The next step in the process is the PIC Profile which further refines the selection process by measuring the applicant's relative strength of intention to perform a franchise specific behavior.

The applicant's behavior is more accurate than personality in predicting performance. However, it can only narrow the field down to more suitable candidates. If an applicant doesn't display or intend to perform certain actions related to franchisee success, then it would be a waste of time and money continuing with them.

The PIC profile measures behavioral intentions relevant to franchising. Things like:

  1. Working consistently and intensely even in the face of adversity,
  2. Following or not following your system based on their trust (or lack of trust) in the ability of the franchisor,
  3. Behaving in unlawful, unscrupulous or ethical ways, and
  4. Dealing with others in an insensitive or uncaring manner.

Even if you only combine the PIC and the Franchisee PreQual Assessor you'll be miles ahead of other franchisors that rely on the old "traditional" franchisee selection methods.

Measuring Attitudes and Beliefs
The final step in the intelligent Dynamic Franchisee Qualification Process is the FranchiZe Profile. It's designed to predict the performance of the franchise candidate by measuring attitudes, beliefs, and appropriate franchise specific behaviors.

Job-Specific Behaviors
Ask candidates to indicate the importance of various job specific tasks and how they would behave in very specific situations provides more indicative and franchise-specific information concerning an applicant's competencies, which may not be initially apparent in their application or during an interview.

The Most Effective Method of Predicting Performance
It's generally recognized that measuring attitudes, beliefs, and appropriate job specific questions is one of the most effective methods of predicting performance. That's why this method is an integral part of the Dynamic Franchisee Qualification Process. Because it's the best predictor of performance - bar none.

By measuring attitudes, beliefs and job-specific behaviors, the FranchiZe Profile will tell you whether the candidate will:

  1. Have a strong work ethic or if they have a "retirement" ethic. Treat employees well and understand they are a valuable resource rather than an expense,
  2. Follow your system,
  3. Treat customers well,
  4. Have a positive attitude for success,
  5. Be comfortable dealing with people,
  6. Be comfortable with local store marketing and 7.
  7. Treat employees well and understand they are a valuable resource rather than an expense,

All areas you know are critical to franchisee success environment. That's exactly why the FranchiZe Profile measures these seven critical characteristics.


"My first introduction to the FranchiZe Profile was when we were looking for better tools to help us evaluate franchise candidates. Since then, I have found that the FranchiZe Profile boils the selection process down to basics.

This tool makes it easier to measure the candidate's strengths and weaknesses in some key areas. Combining the profile results with the other elements we look at allows us to make an accurate judgment without guesswork. The FranchiZe Profile is one just one important tool we use at DOTI Design Stores to help us select franchisees.

Better franchisees make for a better brand. I recommend Fred's FranchiZe Profile to other franchisors all the time."

Mr. Jim Evanger, Designs Of The Interior (DOTI)

 

Each of the 3-stages of the Dynamic Franchisee Qualification Process can be used on it's own and will help you select better franchisees, But, by using all 3 aspects of the Dynamic Franchisee Qualification Process in the proper order:

  • 1st touch - the Franchisee PreQual,
  • 2nd touch (possibly shortly after the 1st telephone interview - the PIC, and
  • 3rd touch (just prior to "Discovery Day" for lack of a better term) - the FranchiZe Profile.

You end up with a system that is far more than the sum of its parts. Each part of the Dynamic Franchisee Qualification Process complements each of the others. By using all three you're tackling franchisee selection the way it should be tackled. Getting the best information available about the candidate only when you need it.

Following the 3-stages of the Dynamic Franchisee Qualification Process eliminates dealing with the myriad "tire-kickers" that are non-suitable.

Now your development team can focus on suitable candidates instead of wasting time contacting and working with unqualified and unresponsive leads. Which leads to...

  • Lower recruitment cost per applicant.
  • Higher closing rates which increases franchise sales.
  • Selecting better franchisees.
  • Increased royalties.

Over more than 20 years of working with franchisors, many of them have told us how invaluable the Dynamic Franchisee Qualification Process is. It helps them pick the best candidates and keep the best franchisees. It's been proven effective by rigorous, independent, third-party scientific studies using "state-of-the-art" methods of comparing a franchisee's performance and their FranchiZe Profile results.

It's these rigorous, "state-of-the-art" methods that found that "every 1-point increase in a franchisee's score corresponded to an estimated increase of over $19,500 in outlet sales"(1)(*). Another recent study found that "there was a $15,675.81 increase in annual sales for every single-point increase on another dimension"(2)*!

Optionally, we can use the same "state-of-the-art" methods we used to develop these tools to identify your "ideal" franchisee by conducting a validation study on all of your franchisees (minimum of 100).

A Real World Example
Years ago, in the course of our normal shopping, I visited one of our newest client's poorer performing location. I was astounded at how poor the service was from the franchisee. She was surly, unpleasant to deal with and thought that she was doing her customers a favor by selling to them.

Does This Sound Familiar?
Shortly after my visit, the franchisor decided they had had enough of dealing with this problem franchisee. Using just one part of the Dynamic Franchisee Qualification Process, they decided to accept a candidate that we suggested would perform in the top 25% of franchisees in their system. The result was amazing.

Not only did the new franchisee increase business, but they increased it by over 40% within 3 months! Same location, same product, same signage, same everything with one critical difference, the franchisee. The new franchisee was someone that went through our qualification process and came through with flying colors.

That was in 1989, over 20 years ago. The franchisor continues to use our system because it works for them.

Today you have a choice. Keep on doing the same thing you're doing today and get the same results as you're getting now, or call Fred Berni right now at 800-719-9993 to learn how you too can save money while increasing royalties using the Dynamic Franchisee Qualification Process system.


(1) The I/Opener - UW's I/O Psychology Newsletter (Summer 2005) - copy available on request.
(2) Page 11 - Study conducted on a B2B service company in 2005 - copy available on request.
(*) Studies completed at the University of Waterloo

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