Successful franchise recruitment
Joel Bissitt, sales director at Franchise UK
We all know that for any business to maximise potential, the successful recruitment of talent is paramount to keep a company thriving. With the rapid advancements in social media, and the internet, the workplace has experienced much change in recent years, with more companies embracing flexible hours, technology has enabled us to revolutionise the way we work.
When a business is looking to recruit a new team member, this can be quite a labour-intensive process. Placing ads, sifting through CVs, short-listing, possibly two or more interviews, and assessments. In the hope of finding the ideal candidate. Recruiting staff via an agency removes a lot of the leg work for a reasonable cost, therefore many companies quite understandably opt for this method. A candidate that is seeking an employed salaried role is completely different to a person looking to invest in a franchise.
At Franchise UK, we help UK and international franchise brands with their recruitment of franchisees. Franchise recruitment differs from traditional employment agency style recruitment. Many franchise seekers decide to invest in a franchise for many different reasons; a career change, change in lifestyle, redundancy, leaving the military are all common reasons amongst franchise seekers.
Whilst the recruitment process will vary among franchisors, quite often it will form a certain pattern.
The applicant will make an initial enquiry, this may be by telephone, but more commonly on a franchise information portal, such as Franchise UK. The applicant will be sent a franchise prospectus, either online or through the post. This is an important document that will give details of the franchise, the costs, projected earnings potential and explain the next step should you wish to investigate further.
Interested applicants are often invited to a recruitment day, often described as an open day or a discovery day. Attendees will usually meet with the franchisor or a representative. This meeting is similar to an interview, but often less formal, depending on the franchise type. The franchise seeker will have the opportunity to ask questions and learn more about the franchise.
The next step in the franchise recruitment process would be placing a deposit to secure an agreed territory. Once at deposit stage, the potential franchise seeker will usually be required to sign a confidentiality agreement. If a franchise seeker successfully gets to this stage then they can start the due diligence process. Franchise UK strongly recommends that any franchise agreement should be reviewed by a specialist franchise lawyer. Check the projections, the company’s account history, ask to speak to existing franchisees. Find out details about the training and support. The franchisor may also perform due diligence, at this stage neither party is under any obligation to proceed.
Would-be franchisees can sometimes be of the impression that if they have the required liquid capital to invest they will automatically be accepted by the franchisor; this is not always the case. Applying for a franchise is similar to applying for a job, unfortunately you may not be successful. Many good franchisors decline applicants if they feel they may not benefit the existing franchise network.
Once the franchise applicant has the opportunity to perform all necessary checks and wish to proceed with the franchise investment and franchisor has accepted the applicant, the full agreement can be signed, the franchise recruitment process is at an end. And the next phase of training, and launch will begin.
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