3 Reasons franchisors are missing talented potential franchisees
Franchisors invest significant amounts of time and resources into franchisee recruitment yet with average industry enquiries to conversion as high as 200 to 1 in some franchise models why are franchise recruiters so quick to say no to talent?
Here are our top three reasons that franchisors, especially in proven and profitable low investment franchise opportunities, are missing out on KEY TALENT:
- NO MONEY – Bang, wallop, brick wall! Franchisors spend thousands on recruiting franchisees every year. So why would you not listen to a potential franchisee simply because he/she lacks the financial resources to make a personal investment? It may be the case that this potential franchisee has one of the best CVs and transferable skills that you have come across.
Does a franchisee still work as hard if they don’t have ‘skin in the game’? – Yes! from our experiences.
- DAMAGED CREDIT HISTORY – Franchise recruitment teams need to start asking additional questions. In some cases you will find that you have an extremely good fit in a franchisee but they are hesitant as they are concerned about some historic credit mishaps. Whereas credit worthiness is highly important when looking for investment, the reasons behind any mishaps may be as important.
For example: A potential franchisee call shows interest and explains that they have been made redundant twice (so clearly they are motivated for self-employment) but they have debt management products in place. As a result, they’ve taken control and sought to manage financial adversity caused by redundancy. Could your franchise recruitment team be missing out on a great candidate because of a historic accident?
- UNEMPLOYED FOR TOO LONG – Franchise recruiters can still fall victim to the old HR recruitment perception of stereotyping potential franchisees.
For example: You have a potential franchisee that is of pensionable age and they have been unemployed for several years. Oh, they’ve also been on that government work program thingy too. What would your franchise recruitment team do here?
More than 40 franchise recruitment teams in the UK have responded to cases like these by considering the wider social value in engaging with unemployed people and accepting that untapped talent is on their door step.
So what’s the answer?
FranchisingWorks – a not for profit organisation that provides support and impartial advice to the unemployed and those in career transition who would not normally be able to access normal routes into supported self-employment. We have supported nearly 100 people into starting a business and many of these franchisees have started from backgrounds such as those identified above. We have also helped several of the franchisors who support elements of the Social Value Act to represent more than 10% of their franchisee network. In several cases we have great stories where they are excelling against their franchise financial forecasts too!
OUR ADVICE:
Don’t be too quick to say no, and ensure that your franchise recruitment teams are asking additional questions related to the above three topics. It just may be that you’ve uncovered hidden talent who just need a leg up from FranchisingWorks to work with you.
To find out more call 01614081313 or email us: info@franchisingworks.org