In 2019 Franchisee recruitment is a challenging area with the number of potential good franchisees dwindling. Finding a franchisee that is a good fit for your business is like gold and you want to make sure that great candidates, candidates that are right for you, go on to buy into your business.
So why don’t potential franchisees go on to buy your franchise? Is it a lack of confidence in the franchise system; negative publicity, inadequate salespeople; not enough perceived profit; inability to get finance or a multitude of other issues? Uncovering the ‘’why’’ will enable you to understand and address the issues, issues that may not be fully transparent without delving deep.
In this era of limited availability of good franchisees, Franchisors need to know why an interested candidate doesn’t go ahead and sign up. By asking the questions to the potential candidate, the franchisor could uncover inadequacies in their franchise offer, their sales process, their price or either yet to be identified challenges. Identifying and addressing the issues raised will uncover exactly what’s going on.
DO NOT keep guessing why franchisees don’t go ahead and purchase. Make sure you have a clear line of sight to make data-driven decisions enabling you to improve recruitment and retention.
Understanding this will have a threefold effect:
- The future reduction in salespeople chasing wrong people which reduces the cost of acquisition of new franchisees
- Understanding if blockages exist and if anything can be done to improve the attraction of new franchisees
- The Improvement of processes and systems, further reducing the cost of acquisition.
These will all impact your bottom line.
What is it really costing you?
- The inability to attract high performing franchisees costing you tens of thousands of dollars each year and potentially hundreds of thousands in lost royalty revenues over the life of a franchise agreement.
- The waste in time and energy of your franchise recruitment team who have spent many hours working on the prospect just to have them drop out at the last minute.
- The loss in future potential and growth as potentially good candidates walk.
How can you wrestle back control?
The truth is conversations and awareness of why great candidates do not sign up is still a guessing game. What you need to do is CHANGE THE GAME. To make sure you have a clear line of sight to make data-driven decisions that enable you to improve recruitment and retention.
How we help
- We interview those candidates who are a great fit for you but have decided not to join your brand.
- We get to the root cause as to why the decision not to buy was made.
- We provide analysis, feedback, and recommendations based on this research.
- This analysis will enable you to tweak and improve the recruitment process.
This research is particularly vital for those candidates that you have identified as being the right fit for your brand. You cannot afford to let them keep walking.
Let’s unpack what’s going wrong in your franchise sales process and provide insights on what needs to improve.
- A full analysis and report as to WHY good candidates are not signing up to your brand. By getting this right, and tweaking how you manage the recruitment process is essential for the ongoing survival of your brand.
- Clarity over why franchisees don’t go ahead and purchase the franchise
- Improved insight into your franchise recruitment activities
- The truth behind potential franchisee decisions (and not relying on what they may be telling your franchise recruitment team).
- Improved fit
- Accelerated positive results in recruitment activities
How we will approach this
- Franchisee candidates who have shown to be great potential franchisees, and have not proceeded to buy the franchisee will be interviewed. The interview will be via Zoom and recorded if the candidate agrees. The interview will take up to 45 minutes.
- Each person will be offered a $100 gift card to do the interview.
- The person will be contacted within two weeks of them saying NO, providing the information is provided to FranchiseED as soon as they decline to go further.
Questions will include:
- Why they did they consider your brand?
- What were the positives in the brand and what were the negatives?
- What process did they go through when researching your brand?
- Where did they get the information from?
- Who did they consult?
- At what point did they decide not to proceed (eg after legal advice or financial advice?)
- What were the third party feedback (eg lawyer, business advisor, family, friends)
- Why did they decide not to go ahead?
- Did they purchase another business? Was it a franchise brand?
- What could have been done to change their mind (if anything)?
- Would they ever consider the business in the future?
- Completely independent making the candidates more likely to relax and provide open and honest answers
- Many years of experience in commercial and marketing research in the franchise sector.
- The candidates can be anonymous so it’s removed from the franchisor’s business.
The Real Benefits
- Data driven insights and decisions.
- Engagement with right-fit candidates.
- Quicker recognition of when not to pursue.
- Informed marketing and recruitment strategies.
- Greater return on investment in franchise acquisition activities.
Don’t lose another good potential franchisee again.
Contact FranchiseED to learn more on Kerry@franchise-ed.org.au.