Selecting the Right Candidates to Franchise

Franchising can have its fair share of challenges. But its most vital part–expanding to new franchisees–doesn’t have to be impossible or difficult! You’ll just need to know what you’re looking for.

Choosing the right franchisees is utterly crucial to your franchise. A franchisee is the representative of your brand in a specific store. Their professionalism and work ethic (and that of their employees) will affect how customers see your brand, whether at all or in a specific area. That can make your business stronger, or possibly cripple it if you’re still starting out.

Know What You’re Looking For

Though franchisees aren’t exactly “employees,” you should use a similar start to your search. Create a job description before setting out to find your ideal franchisees. You’ll need to know exactly the kinds of people you’re looking for and the qualifications you need to match. And in turn, they’ll need to know exactly what it takes to run one of your franchises. Outline all the expectations from the start. You don’t want any nasty surprises for either you or your franchisee!

Screen Franchisees

When you’ve attracted potential partnerships, interview them in person. You have to make sure they’re ready for the responsibility, and that you’ll be safe taking them on. Trust your instincts and don’t let the check for $30,000 blind you to a potential failure. Run background and credit checks on potential franchisees. Watch out for lawsuits, fraud charges, and bankruptcies.

Build a Relationship

Entering into a franchise requires building a partnership with your franchisees. It requires mutual trust, communication, and a desire to help your business grow. Choose people you can build that relationship with. This doesn’t mean you should be best friends with your franchisees, or only choose people with whom you already have a friendship. But a healthy relationship will keep things positive between you and your franchisees, and will help you both grow your business.

Still worried about finding the right business partners? We have even more tips!

Buying a Franchise: Is the Risk Worth It?

For those who want to become part of a franchise, there is one common question: Is entering a franchise worth it? The short answer: yes, if you and the franchisor do your parts. You will have a lot of business advantages when you decide to franchise. However, there is heavy financial risk, as with any new business.

Pros of Franchising

The odds are in your favor when you purchase a franchise. When entering a franchise, you get the tools and systems of the whole company. You get a network of other franchisees and their experience.

On top of all that, you get the franchisor’s experience. They have made the mistakes and successes concerning the recipes, locations, hiring, and expenses. They already know the costs, and they’ve taken a lot of the guesswork out of this part of the business. This reduces your risk of a failing company, especially if the brand is well-established. Likely, the franchisor will also have a built-in marketing plan, removing some of this responsibility from your plate.

Having so many other entrepreneurs within the same overall franchise gives you many shoulders to lean on until you get into a rhythm. In franchising, you may find the saying: “You’re in business for yourself, but not by yourself.” You get to have all the benefits of owning your own business without going it completely alone.

Cons of Franchising

Franchising, unfortunately, is a pricey venture. It can even cost you more than the startup to form your own separate business. Plus, you’ll have to pay royalties to the franchisor. And there are other fees, depending on your contract. While the franchisor has a great marketing plan and other tools, you may have to pay to receive this support.

You’ll also have to accept that you’ll have limited creativity. It’s extremely important to franchisors and to the health of the whole company that their branding stays on target. So you likely won’t be able to change anything about how the franchise operates or looks.

One other con related to the contract is how long you may have to stick with the business. If you end up in the wrong franchise for you, you could be stuck for years.

So is Franchising Really Worth It?

The answer to that question varies from franchise to franchise. And it depends entirely on your ability to research and accept the risks. Researching the franchise and asking the right questions can help you avoid costly mistakes. More than that, it will make your franchising experience worth every penny.

Why You Should Hire Millennial Franchisees

As everyone who came of age in the new millennium knows, Millennials get a bad rap in business. Misconceptions fly everywhere: that Millennials are lazy, entitled, disloyal, and obsessed with their phones. This leads to “fear of Millennials in the office” from older managers and CEOs. Franchisors also avoid marketing to this generation, at a staggering low of 15% of marketing directed toward them. However, Millennials can and will enter the corporate and business world at any level–now or eventually. Here’s what you should know about Millennial franchisees, and why you should want to hire them for your franchise.

Why Millennials are franchising

The Great Recession affected this generation’s development in particular. Many of them grew up or struggled with early employment during this time. As such, it has turned many of them from regular corporate jobs. Millennials often want to run their own business instead.

But, in the current job and real estate markets, starting an independent business can be difficult, so many millennials turn to franchising. This gives them the ability to own and manage a part of a business and become successful where true entrepreneurship may be difficult or impossible.

Franchising offers Millennials stability and independence in a sometimes uncertain market. It gives them a chance to use their education and degrees, and allows them to be their own bosses. This is especially important to Millennials because they are looking to build a lifestyle, rather than a mere job.

And finally, Millennials want to make a difference. They want to matter, and a franchise will provide them that perfect opportunity.


Why you should hire Millennial franchisees


When choosing franchisees, many franchisors don’t want someone who’s too creative, or who will do things too differently. After all, maintaining a consistent brand image is one of the most important elements of running a franchise. So older business owners may avoid Millennials. However, a shot of creativity into your business may do more good than harm. Businesses do need to grow and expand while staying consistent. Consider how major companies’ slogans have changed over the years, or subtle tweaks to the design. That’s the kind of creativity that you might use to gain a successful franchise.


What some call “laziness” from Millennials is often just a search for efficiency. Millennials look for opportunities to save themselves a trip, a wasted effort, or hours of stagnant time. As such, Millennials move toward franchising because they can’t see themselves in a cubicle farm, churning out reports or sitting in meetings from 9 to 5.

Technology proficient

Due to millennials’ proficiency in technology, they adapt well to website or app changes the franchisor makes, especially if it makes their business more efficient.  They’re also great at managing and telling a story on social media to get results. They’ve grown up on social media, and can wield it as a powerful tool if given the freedom to do so. This includes using that efficiency and creativity to adapt for social media marketing.

Eager for feedback

Millennials are often referred to as the Trophy Kids; whether it was from a sports team or a spelling bee, many Millennials received trophies for simply participating in a competition. However, that has made many Millennials want to do better than the rest. And in  that search, they want feedback. Millennials are happy to learn how they’re doing on a regular basis, which means you can mentor them and collaborate with them to create a more successful business.

Risk-aware and positive

Millennials are not risk averse. Rather, they calculate risks and go into it with an attitude that businesses can be saved and losses recovered. This is perfect for franchising!


Millennials are ready to enter the world of franchising. Are you ready to let them take part in your business?


How to Select the Best Franchisees

When you decide to franchise your business, you are making a very important and impactful decision. One of the hardest parts of the decision is knowing what to look for when you select franchisees. Your franchisees can either make your decision to franchise the best or worst decision of your life. Here are the top () characteristics to look for in a potential franchisee so that you will only select the best franchisees.

1) Health

You want to choose a franchisee who will be in it with you for the long run. If a potential franchisee has recurring health problems that will keep them from successfully run their franchise, they are not the right choice. You need franchisees who are in good health and can perform the necessary duties to be successful.

2) Financial Resources

Your franchisees need to have financial resources to cover any losses that might occur. This is a pretty typical grading criteria for businesses that franchise. You need to determine what the minimum net worth of an individual is so that you can effectively and easily filter out those who aren’t qualified financially.

3) Experience

Your best bet in selecting a franchisee who will be successful is in their work experience. You want someone who has business-related experience and have proved to be successful in their past. You will want to avoid franchising to somebody who has ever worked in business in relation to with finance, marketing, or accounting.

4) Management Skills

Franchisees are leaders, but even leaders sometimes need direction. You need to set up work standards and expectations to help guide them in the right direction. Your franchisee needs to be able to effectively lead a team of employees to be organized and efficient all while staying on top of the management side of the business by accurately bookkeeping the finances and other overhead of the business.

5) Independence

Your franchisee needs to be able to work independently from you. Don’t select a franchisee who you think will be too reliant on you for making business decisions. Choose franchisees who are confident that they can effectively run and business and succeed.

6) Integrity

Probably one of the most important characteristics to look for in a franchisee is integrity. You need to be able to trust all of your franchisees and especially trust that they will be honest and ethical in how they do business. All it takes is one bad apple to destroy a brand.

7) Compatibility

Lastly, you want your franchisees to be compatible with your business, industry, and company culture. Just as if you were going to hire a normal employee, you want to make sure they will fit in and compliment the business in every way. Avoid those people who have toxic attitudes…they usually end up being the bad apple for your business.

Looking For More?

There are a lot of good resources out there that can assist you in selecting the best franchisees. Here are some resources we found useful:

Looking For An Easier Way To Effectively Market?

Divvy is your one-stop shop for all of your marketing needs! From digital marketing to print marketing, you can rely on Divvy to maximize your marketing efforts. You can learn more by contacting us through the form below or by calling at (801) 224-8666. Come experience the Divvy difference today!


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How to Strengthen Your Franchise: Avoid These 7 Costly Mistakes

When investing in a franchise, you want to ensure that your business will continue to receive success. Strengthen your franchise by avoiding these 7 mistakes that could harm your brand and lead to franchisee failures:


As the franchise owner, you are in charge of making the major decisions that effect your entire franchise chain. However, don’t be so tightfisted that you’re unwilling to listen to the ideas your Franchisee owners have. You don’t have to agree with everything that they suggest, but be open to new ideas that can strengthen your franchise and brand.

Expanding Too Quickly

A franchise is meant to grow and succeed, but it doesn’t (and often can’t) happen all at once.  ooking back on its first four years of operation, admitted that one of its biggest early mistakes was leaving the markets of the Southeastern states before it was ready. It granted several franchises for locations in California, which, one after another, turned into nightmares for franchisees and franchisor alike. The franchisees were simply too far from the company’s headquarters. Support and training were difficult; regular monitoring and assistance were nearly impossible given the expense of travel. Small difficulties went unattended and grew into large problems that eventually led to costly restaurant closings.” Let your franchise grow comfortably at a rate that you, the Franchisor, can maintain.

Hiring the Wrong Franchisees

Along the same lines, when you do decide to add more franchisees, take the time to hire someone with a business ethic that matches your own. Andrew A. Caffey suggests that, “The best way to avoid this problem is to make sure the franchisor is adequately capitalized to allow for slower, more measured growth, and allow time for the company to identify the best prospective franchisees possible.” Remember, this business is supposed to last long term. Invest the necessary time it takes to hire the right people.

Forgetting Employees

Now that you’ve hired the right people, be sure to take care of them. Understand the reasons they are working for you so that you can ensure their needs are met. Do your employees enjoy the flexible hours? If so, applying stricter hours to all franchisees could be a big mistake that could loose future employees. Are they working for you because they believe in your product? Then changing the product too drastically might scare them away.

Remember, dedicated employees mean a thriving business. Be sure to care for them and meet their needs so that they can continue to meet the needs of your customers.

Cutting Costs that Compromise the Customer

Saving money on unnecessary costs is a good thing, but compromising the customer’s experience is not. Just like with your employees, be aware of what keeps your clients coming back again and again. Do you have special discounts or deals that they look forward to each month? Getting rid of them altogether may be a mistake. Is there a special item on your menu that your customers adore? Find what keeps your customers coming back, and give them the quality experience they have come to know and love. Remember, it is much easier (and cost affordable) to retain a loyal customer than entice a new one.

Not Sharing “Secret Sauce”

Each business has secrets to its success, whether its a special recipe, a method of training employees, or the attitude with which it receives potential clients. President of Osteo Strong Franchising, LLC, Kyle Zagrodzky, puts it this way: “Entrepreneurs are charismatic, and when they’ve built a successful business and start considering franchising, they often severely underestimate how much of their personal touch makes that business thrive. To win on a massive scale, a franchised company has to be duplicable, but you can’t replicate yourself. Franchisees have to feel connected to the spirit of the brand, and the best way to do that is through great educational resources. Offer franchisees immediate, easy access to a full suite of educational tools that will show them the recipe for your secret sauce so it can be recreated in every unit.”

Trust your Franchisees with the secrets to your success so that your brand can continue to thrive.

Brand Inconsistency

Your brand is how your customers recognize you. If your logo or brand colors are changing from location to location, it will confuse customers, and make some of your Franchisees start to look like cheap knock-offs. Keeping consistency is especially important when rebranding your business.

It’s not all just about logos, however. Are you updating your franchise menu? Offering a new discount? Branded marketing materials should be consistent across your brand, and for that to happen, they need to be easy for your franchisees to access. Here at Divvy by Alexanders, we specialize in helping Franchiees keep branding consistent over all of their social media and print marketing materials. Find out more about Divvy here, or contact us in the form below for additional information.

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