It is very important from a business stand point for a franchisor to select a prospective franchise partner. Here are some ways to do so..
Ever wondered apart from investment capabilities what are the other constraints that make franchisors select their prospective franchise partners? There are a lot many other factors on which partners are chosen. We tell you the top ones. Read through to get picked up by the best brands..
A quality franchisee selection is very important for an unwavering bond between the franchisor and franchisee. The process of franchisee selection is not easy. Some want franchisees who are very passionate about the industry. Some want them to be business minded etc. Telling us about the same, Ramesh Kaushik, Vice- President- Brand Experience, Blackberrys men’s wear says: ‘Apart from the financial parameter, what we look in our partner is his understanding of the potential consumer in their city. How they plan to connect our brand to the consumer plays an important role for us in selecting the right partner.’
The relationship between a franchisor and a franchisee can be very healthy and long term if proper selections are made. A franchisor should be very clear in mind about what kind of person he actually needs for expanding his business. Selected franchisees can finally understand what a franchisor actually requires and interviews and other processes can start. With over 500 + distributors pan-India, Red Riding Scarves is the only brand ruling the industry. Its CEO Paras Mahajan tells us below factors that he seeks in a franchisee.
Product Flexibility & Adaptability- Every market has a slightly different audience keeping in mind the diversity in cultures across India. Thus, it is important to customize the products to be able to meet varying demands.
Brand Image-Brand image of the franchisee is important as it helps establish reputation in the market.
Offering-The ability of a franchisee to stand apart from the competition and provide the desired products is a critical determinant too.
Franchisee-Franchisor Relationship- This is very important for the success of this model of business as mutual partnership that is focused on growing the franchisor and the franchisee simultaneously creates value or both.
Knowhow of the sector
Having a good franchisee is building a great team. So, franchisor has to be very careful in this task. A franchisor must also try and figure out if the person has complete knowledge of the industry or not. For example: If the franchisee has come for joining hands with an education brand, he must be able to list out all the top players. Franchisor can also check the background and past performance of the franchisee with his ex company.
A franchisee needs to be competent enough to be quickly picked up by a franchisor. He must be capable to handle real time issues. Most established brands get franchisees very easily but unknown or lesser known brands have to struggle a bit but they also have some set criteria for franchisee selection. So, if you are hardworking and know what your franchisor wants out of you, you are set to be their long time partner.