10 questions every franchisor should be able to answer
The recruiters at Koelewijn & Partners spend their days recruiting, informing and advising aspiring entrepreneurs. A big step for many.
Entrepreneurship is not a profession, it is a way of life. Joining a franchise organisation, where the concept and revenue model are already proven and where the entrepreneur can rely on the day-to-day support of the franchisor and their team, can make that step easier.
That said, franchising is not for everyone. As a franchisor you enter a long-term relationship with your franchisees. A mutual click and reciprocal trust are essential.
During the orientation phase, our recruiters always emphasise to prospective franchisees the importance of properly understanding the formula, the people involved, and the opportunities ahead.
We are happy to share some valuable tips for you as a franchisor, so you know which questions to expect from a genuinely interested prospective franchisee. The answers are not right or wrong, but they reveal the ideals guiding the franchise organisation.
10 questions every franchisor should be able to answer:
Why did you start a franchise organisation?
Franchisors should be able to clearly explain their motivation and the vision behind the founding. This provides insight into the drivers and long-term goals of the organisation.
What are the ambitions of the franchise organisation?
Prospective franchisees want to know which goals the organisation is pursuing, such as rapid expansion, profitability, innovation or international growth. This helps them understand the focus: revenue, service or quality.
Why should a prospective franchisee choose you over a competitor?
It is crucial to highlight the organisation’s unique selling points. This shows how the franchise distinguishes itself from competitors and why candidates should choose this franchise.
May a prospective entrepreneur contact existing franchisees?
Transparency on this point builds trust. If candidates are allowed to contact existing franchisees, they can gather valuable, honest feedback about the franchise experience.
How much entrepreneurial freedom does a franchisee have?
Clearly communicate how much freedom franchisees have in running their business, for example when deciding the assortment or pricing. This helps candidates understand what to expect.
How are internal consultation and support structured?
Provide clarity on the structure of consultation and support, such as the role of a franchise council and how training and support are delivered, both before and during the franchise period.
What is your perspective on online sales and e-commerce?
Share the franchise’s vision and policy on online sales. This includes who is responsible for investment and how online revenue is allocated between franchisee and franchisor.
What is the scale of the investment and how can it be financed?
Provide insight into the financial investment required and discuss possible financing options. Inform candidates about any support with applying for financing and relationships with financial institutions.
Which measures do you, as the franchisor, take to optimise franchisee performance?
Discuss how the franchisor contributes to the success of the franchisee. This includes joint efforts and support so that both parties benefit fully from each other’s knowledge and experience.
Are we a match?
Discuss mutual expectations and whether both parties have confidence in a strong partnership. This helps both sides finish the orientation phase with clarity on suitability and the prospects for a successful collaboration.
These questions and the corresponding answers are essential for making a well-informed decision and contribute to a successful, long-term partnership between franchisor and franchisee.