What does the ideal franchisee look like to you? Probably dependable, hard-working, financially stable, and experienced, among other things. But finding these individuals is easier said than done, which is why so many pizza franchises end up selecting franchisees that aren’t a great fit and suffer an average franchise turnover rate of nearly 30%.
Whether you are newly exploring the idea of franchising, or have been doing it for over a decade already, here are some tips on attracting and selecting the best franchisees so that you don’t become another cautionary tale.
Actively Promote Your Franchising Opportunities
It’s going to be pretty hard to attract good franchisees if they don’t even know that you offer franchise opportunities. That’s why you should dedicate a sizeable portion of your marketing time and resources toward getting the word out that your brand is looking for new franchisees. This means setting up a dedicated franchise opportunity page on your website, ensuring that it is mobile-friendly, regularly updating it with any relevant company information, and then actively promoting it across your various social media pages.
Turn Your Most Successful Franchisees Into Advocates
It’s expected that a company is going to tout good things about themselves, which is why 70% of people trust the word of other consumers more than anything that a brand says. But you can use this to your advantage when it comes to finding new franchisees.
Turn to some of your existing franchisees (or employees if you haven’t yet begun franchising) and get some great quotes to put on your franchise opportunity page. This will give more credibility to the assertion that your brand is a good place for people to invest their money and become successful franchisees. Also, ask these employees and franchisees if they know of anyone looking to go into franchising.
Target a Younger Audience
The problem with limiting your franchisee search to seasoned industry professionals is that this typically turns up older individuals. These older franchisees might only have a decade or two to run their locations before they are ready to hand them off to someone else. However, by going with a franchisee who is younger, you get someone who is much more likely to stay with the company for quite some time.
A&W refocused its franchisee program by implementing a special franchise program that targets millennials. This typically involves a lower franchise fee and company-based loans to help younger entrepreneurs afford the steep financial requirements.
Attend Every Major Industry Event
Most pizza chains use financial stability as the primary basis for which franchisees they pick. While this is certainly important, it should be only one of many factors that you use to determine who will make the best franchisee.
Another thing you should look for is an industry passion or the drive to succeed. The problem is, this isn’t always easy to spot in people. Since actions speak louder than words, look for people who do things that demonstrate their determination and passion.
A great way to find people with a passion for the industry is to attend major industry events. Any members of the public who attend these events are likely looking to open a restaurant and are there to do their research and/or find the ideal company to partner with. These are the individuals that you’ll want as your new franchisees.
Invest in Creating a Quality Corporate Support Team
As the poet John Donne famously said, “no man is an island.” No one knows this better than a franchisee who is trying to make a new location operational and profitable while dealing with an unresponsive or ill-equipped corporate team.
That’s why you need to develop a strong internal system that is able to efficiently handle any franchisee needs or concerns in a timely manner. Not only will this improve the relationship between your franchisees and head office, but it will inevitably provide you with glowing recommendations to help attract even more franchisees.
Once you have a thriving marketing campaign for your franchisee program and have started targeting the right audiences, the applications should start rolling in. In the meantime, here are some other crucial franchising tips that you’ll need to know.
Posted on Mon, Dec 28, 2020 @ 08:12 AM.
Updated on June 1, 2021 @ 3:46 PM PST.