The Franchise Entrepreneurs Assessment

The new Dutch Franchise Law has been effective since January 1, 2021. This requires all franchisors to align their recruitment & selection process with the Franchise Law.

The importance of thorough research in accordance with the Dutch Franchise Law

The Franchise Law mandates that thorough research into the suitability of (prospective) franchisees becomes an essential part of the selection procedure for franchise formulas. It is important not to underestimate the importance of this research as a franchisor. Having a vision and plan is necessary for assessing (prospective) franchisees. Additionally, the outcomes should be collected as evidence in franchisee files.

Information must be provided timely

Since January 1, 2021, franchise organizations are legally required to provide all relevant information to prospective franchisees. This enables them to make an informed decision about whether or not to join a franchise model. The best way to manage this is through a Pre-Contractual Information Document. At least four weeks before the franchise agreement is signed, all information must be provided to the prospective franchisee. Furthermore, the information obligation in the Franchise Law is mutual, meaning the franchisor can also request specific important information from the franchisee.

Development of franchisee files

This makes it more critical than ever to review all documents and background checks used in the selection procedure. What information do you, as a franchisor, need in writing and want to receive from prospective franchisees? A helpful tip is to develop franchisee files in which all candidate information is kept. Evidence becomes increasingly important with the Franchise Law.

Introducing the Franchise Entrepreneur Assessment

What value can a Franchise Entrepreneur Assessment provide for conducting thorough research into the suitability of franchisees early in the selection process? Which selection components should be included in an Assessment to confidently determine whether to embark on a long-term partnership?

Franchise Entrepreneur Assessment

By using a Franchise Entrepreneur Assessment early in the selection procedure, a franchise organization gains deeper insight into the competencies and skills of (prospective) franchisees. The Assessment is an inspiring journey of discovery for (prospective) franchisees. It practically maps out qualities, areas for development, motives, and behavior styles. The outcomes can be easily documented and serve as evidence in line with the requirements of the Franchise Law.

The outcomes of the assessment

The Assessment ultimately provides a complete picture for selection and guidance decisions in franchise organizations. The outcomes can be included in the decision-making process and offer insight into how to optimally coach towards success after the start. The self-awareness gained through the Assessment allows a (future) franchisee to maximize their potential. Moreover, franchisees and franchise management can work concretely on improvement areas based on the outcomes. This ensures that no unnecessary costly mistakes are made during and after the start, and that important competencies are not overlooked during the selection procedure.

Important information about the Franchise Entrepreneur Assessment

• The topics and methods covered are specifically focused on franchise and the effective selection of (prospective) franchisees.
• The Assessment is based on the Franchise Competency Practice Model by Koelewijn & Partners, emphasizing competencies relevant to the franchisor and business success.
• The diversity of Assessment components gives it a high predictive value.
• The franchisor can determine the place of the Assessment within the existing recruitment process.
• A (prospective) franchisee receives a personal Assessment report with an associated development plan upon completion.
• It provides a concise overview of the strong and weaker points of the (prospective) franchisee, allowing for optimal coaching towards success.

The Assessment report

A Franchise Entrepreneur Assessment report can be regarded as a comprehensive view of the (prospective) franchisee: qualities, areas for development, potential, compared to business desires. The personal report includes the following components:

• Displays qualities, skills, motives, and behavior styles.
• Development areas, including strengths and areas for attention. How can the development be initiated per competency? What support does the franchisee need?
• Personality description.
• Description of franchise entrepreneurial competencies, with associated explanations.
• Clear input for personal development.

Components of the Franchise Entrepreneur Assessment:

• Introductory interview.
• Personality tests (online).
• Capacity tests (online).
• Video pitch recorded by the (prospective) franchisee.
• Feedback and recommendations from a colleague (entrepreneur), supervisor, and a client.
• Structured in-depth franchise interview with assessment exercises.
• Practical simulation; "Franchisee in practice".
• Personal Assessment report with an associated development plan.

The challenge of determining suitability of (prospective) franchisees

The challenge remains to select candidates who are not only suitable as franchisees but also fit well with the DNA of the franchise model. A successful long-term partnership between franchisee and franchisor is of great importance. Consider the connection between both parties, the franchisee's competencies, and their passion for the franchise model. Additionally, the Franchise Law requirements regarding determining the suitability of (prospective) franchisees are a factor. Introducing a Franchise Entrepreneur Assessment as a decisive part of the selection procedure early on can provide a comprehensive view, in line with the Franchise Law. It also offers additional confidence in embarking on a long-term partnership.

Take the first step in conducting thorough research on the suitability of (prospective) franchisees

Working fully in line with the Franchise Law requires conducting thorough research into the suitability of (prospective) franchisees as an essential part of the selection procedure. To assist you with this, we offer a Franchise Entrepreneur Assessment, highlighting possible selection components. Interested? Fill in the form below, and we will discuss the possibilities of incorporating the Franchise Entrepreneur Assessment into the selection procedure.