When prospective business owners are considering entering the franchising world, it’s not uncommon for them to think that experience in the particular industry they are looking at is a must. But we know that’s not an indicator of success, and in many concepts past industry-specific experience isn’t even a factor.
Why? We’re looking at the role of the owner. Do prospective franchisees’ past career experiences, regardless of the industry, provide them the skills that are necessary to run the business? And just as important, how compatible are they with the franchise system?
Compatibility is the single greatest predictor of performance. If a franchisee fits well in a system, then they are likely to succeed and in turn contribute to your success.
So how do you determine who is compatible with your franchise?
It begins with truly understanding how you define success in your system. Determining those ideal areas of your business that lead to success, like sales, market share or sharing best practices, to name a few. Then, setting a benchmark by categorizing your existing franchisees. How do they align against those ideals in terms of top, middle and lower performers? And finally, understanding the profiles of each of those groups.
Once you know what makes your top-performing franchisees tick, you can better understand who is likely to be compatible with your franchise. At this point, your organization is equipped with very valuable information. You now have an outline of the key indicators that set your ideal franchisees apart from those needing the most assistance.
When you bring in new candidates you are able to compare their assessment results with your ideal key indicator levels. This allows you to put a numerical value on their compatibility with your franchise system.
Now, you can answer the question, “Which franchisee candidate do you predict will be more successful in your franchise system?” Candidate A that is 80 percent compatible or Candidate B that is 25 percent compatible?
Don’t miss out on identifying and onboarding those candidates with the highest likelihood of franchise success in your network.