Confident businessman in suit, vacancy candidate answering recruiter questions at job interview, recruitment process, human resources, business partners negotiation, conversation in office

Looking to recruit Franchisees to your business?  Here are a few crucial tips for Franchisors

In theory, recruiting a new franchisee should be a relatively simple endeavour – however the reality is that there are a number of pitfalls to face if you, as a franchisor, don’t have the proper systems and checks in place to assist in the recruitment of franchisees for your network.  Coleman Greig urges all franchisors to take a thorough and systematic approach to franchisee recruitment, and can assist you if you are facing difficulty with the process. 

There are a variety of approaches generally taken by franchisors when recruiting a franchisee.  Whether a franchisor can afford to be choosy, or whether it is in the early stages of trying to get their franchise systems off the ground – franchisee recruitment is imperative to the success and longevity of any franchise system.

The key to success in any recruitment undertaking is to have a structured process in place, which will allow you as a franchisor to establish whether the prospective franchisee is the right fit for your network.

If the franchisor fails to recruit correctly, it may be detrimental to the franchise system – and mistakes can be made simply for the sake of closing the deal.  With this in mind, these mistakes can easily be avoided if a few simple measures are put into place before the recruitment process takes place.

Perhaps the most crucial element of any franchise recruitment process is for the franchisor to understand what it is that the prospective franchisee is looking for in joining the franchise system.

In recruiting any franchisee, a franchisor should give consideration to things such as whether:

  • The prospective franchisee’s decision is being made based on expectations that have been set by the franchisor.
  • The prospective franchisee has their own unrealistic expectations of what the franchise will look like?
  • The prospective franchisee has the required skill-set behind them to make their franchise successful?

As part of any recruitment process, a franchisor should, at an absolute minimum, have some crosses and checks in place.  These may include:

An application form

This should be more than just the franchisee’s name and business history.  You shouldn’t be afraid to ask about their background experience – with regard to both business, and life in general.  Similarly, it is not unreasonable to include some questions relating to their family situation and overall financial position.

A profiling tool or questionnaire  

There are various profiling tools available that may help franchisors identify who the franchisee that you are recruiting actually is, by providing the franchisor with some insight into how the prospective franchisee might deal with particular situations.  The franchisor can in turn pinpoint the prospective franchisee’s strengths and weaknesses, and decide whether they are likely to be a good fit for their business.

Meetings or interviews

While first impressions do matter, it’s imperative that the franchisor meets with the prospective franchisee throughout the recruitment process, not just in the initial stages.  Follow up meetings and/or interviews allow you to get to know and develop a relationship with the prospective franchisee, in addition to providing you with further opportunities to glean more in-depth information about the prospective franchisee that won’t always be visible from the first meet and greet.

Meetings with existing franchisees

It goes without saying that the prospective franchisee will more than likely be on their best behaviour in front of you.  To break down the formalities, in arranging the prospective franchisee – it has often served Coleman Greig’s franchisor clients well to have the prospective franchisee meet with an existing (and highly trusted) franchisee.  This will allow the prospective franchisee to ask real questions that they may be too embarrassed to ask you as the franchisor – which is far from a negative thing.  Further, it may reveal a different side of the prospective franchisee that you would otherwise not have known about and may wish to avoid.

Work experience

One of the best ways to gather information on a prospective franchisee, as well as to both effectively and appropriately set their expectations, is to allow them to have a period of work experience within the franchise.  Not only will this allow a franchisor to see what the prospective franchisee is like in action, it will also give the franchisee a taste of the business and may help in addressing their expectations from the outset.

Indeed, recruiting for a franchisee can be hard work.  The process involves countless meetings, emails that both ask and answer questions – and can often result in the deal not going through for any number of reasons.  Regardless of any real or perceived pressure to find a suitable franchisee for your business – the process should never be rushed, as each individual franchisee is a reflection on the business that you have built.

The success of a franchise system is ultimately hinged on the good will of the business.  If your franchisees are unqualified, uninterested or unattached to your business, you are essentially polluting your own brand.

Treat each individual appointment as if it could make or break your business, and ensure that each appointment adds overall value to your brand and system.

If you would like to receive our regular legal Updates, please subscribe here.

For more information on the do’s and don’ts of signing up a franchisee, or to speak with someone on our Commercial Law team – please don’t hesitate to get in touch with us.


Send an enquiry

Any personal information you provide is collected pursuant to our Privacy Policy.


More posts

Understanding roles in the strata scheme

A strata scheme is a building or group of buildings that have been divided into lots which can be apartments, villas, offices, units or townhouses. This will be articulated in the strata plan.

Can i put my home on Airbnb?

Airbnb is a form of short-term rental accommodation. To add your property to Airbnb in NSW, you are required to meet several laws and regulations governing short-term rentals.

When are liquidators required to seek approval to retain legal counsel?

When does a liquidator (or the company he or she is appointed to) need court, creditor, or committee approval to validly retain a solicitor to act in a liquidation matter which is likely to extend for longer than three months?  The answer to this question has only recently been settled.

Proposed changes to building and construction law in NSW

The Building Bill 2022 (the Bill) is the key avenue through which the NSW Government has proposed to reshape the culture of the building and construction industry by eliminating poor performance and improving the quality of building statewide.

Can you dismiss an employee who fails to return to the office?

Slowly but surely, most employers are requiring employees to return to the office for at least a portion of their working week. Some employers continue to struggle with employees resistant to returning to the office or those who have an expectation that they can continue to work from home whenever it suits them.

New powers to combat phoenixing in construction

The rise of phoenixing in the building and construction industry in Australia in recent years has proved a significant challenge to regulators. Mismanagement of time or cashflow can quickly propel businesses into insolvency.

The NSW Building Commission’s extraordinary powers

In late 2023, the NSW Government passed the Building Legislation Amendment Bill 2023 (Amendment Bill). The Amendment Bill established the NSW Building Commission and granted it extraordinary powers to enter construction sites, inspect work and take away information and materials.

© 2024 Coleman Greig Lawyers   |  Liability limited by a scheme approved under Professional Standards Legislation. ABN 73 125 176 230