Got a Question for Franchising Association of India?
Ask any franchisor and they will tell you choosing the right franchisee is one of the most important aspects of franchising. The franchise term and interaction between franchisor and franchisee will only further exasperate the selection of a poor franchisee. A poor franchisee will impact on the franchisor through administration and other support costs and perhaps, in a worst case scenario, through legal costs if the franchisee’s business does not run as successfully as expected.
Franchisors are regularly forced to decline a potential franchisee’s application even though they meet financial requirements because the franchisee does not meet other criteria. Another challenge is meeting a prospective franchisee with more than adequate financial resources but does not meet the general criteria for the business. A clear set of guidelines of what the franchisor expects from prospective franchisees needs to be prepared. Slower development with good franchisees is better than rapid development with less than satisfactory franchisees. Several methods exist to recruit franchisees.
Advertising in one or more newspaper is a popular method, as is recruiting via a franchise directory or a franchise advice specialist. There have been instances where franchisors use more than one method to broaden their net and maximise the chance of recruiting good quality franchisees. Of course, franchisors may receive an extremely large number of applications from potential franchisees. Shrewd management of the applications is crucial for the franchisor to pick the good applicants from those who are not satisfactory. Normally, it may not be possible for the franchisor to see each and every applicant in person. What usually occurs is that the franchisor will make publicly available an overview of the franchise that anyone can access.
The franchisor will offer more in-depth and detailed information to those individuals who make a formal offer of interest. There have been instances where a fee is requested by the franchisor for each application. Prospective franchisees will naturally want to find out as much as they can about the franchise business. Also, the franchisor will ask the potential applicant many questions to gain a thorough understanding of the applicant’s financial circumstances, state of mind and overall suitability for the position.
The interview and selection process needs to be properly managed to avoid issues should an applicant not meet the franchisor’s guidelines.
The Franchise Association of India is the country peak industry body committed to strengthening and promoting the best practices in franchising. Franchise Association of India members are businesses and service providers united by their common concerns for the wellbeing of the franchise marketplace.
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10/06/2008
Franchising Association of India News
Certified Franchise Executives™ Program Expands to India (7/11/2008)The Institute of Certified Franchise Executives (ICFE)™ in the U.S and the Franchising Association of India (FAI) will cooperate to launch the Certified Franchise Executive (CFE)™ program in India under the banner of FAI ...
The other sleeping giant... Franchising in India (27/08/2008)No longer just the domain of street bazaars and roadside vendors, India provides seemingly limitless growth potential for franchisors. With many of the world’s premier brands competing to secure their share of the emerging ...
No TDS for use of franchisee infrastructure facilities (27/08/2008)The Franchising Association of India has been making several representations to various government bodies to make it.One of the recent judgements was that No TDS will be levied for use of franchisee infrastructure facilities.
Franchising Association of India organises workshops to help entrepreneurs succeed. (31/07/2008)Franchising has been experiencing tremendous growth, thanks to liberalization and a growth in per capita income. There are over 850 + franchise brands in India. To leverage this boom and equip entrepreneurs with the right ...