If you don’t know where you are, how can you know where you’re headed?
… That’s why you should assess your current franchisees.
We can qualify a prospective franchisee by looking at aspects of their profile like financial capability, and award a franchise. However, that doesn’t tell us how that new franchisee is likely to perform in the system. In other words, we aren’t able to predict future performance because we haven’t yet set the benchmark for success.
What does success look like in our particular business model? How do we measure that success? And which of our franchisees exemplify those traits that result in that success?
Setting a benchmark begins with determining the key performance indicators for your business. Then, categorizing your existing franchisees to see who your top, middle and lower performers are. From there, you need to know what truly makes your franchisees – all of your franchisees – tick.
So, where are we now? As we assess our franchisees, we can begin to see a common profile take shape among our performance levels. It’s important, however, that we have a good sample size to ensure accurate results. If we only assess a portion of our top performers, for instance, then we aren’t seeing a true representation of our top performer profile. The same is true for our middle and lower performing franchisees.
Why might we want to profile our lower performers as well? You’ll want to look for commonalities among your franchise system as a whole. This will allow you to better assess incoming franchisee candidates. Plus, as you’re reviewing the lower performers in your system, you may uncover a common characteristic that can help you adapt your training program.
Once you’ve laid out your roadmap, now you can answer that question, “Where do we want to go?” A candidate’s profile isn’t a hard line of “yes” or “no” when it comes to awarding a franchise. But it is a guideline for helping you navigate the franchise sale and recruitment process so you can identify the best candidates for your business.