Advice in recruiting franchisees

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Failure by a franchisor who had everything he needed to succeed may also mean that he didn’t succeed in being surrounded by the right people.

Recruiting franchisees is the first difficult step to starting a franchise. It is the quality of Franchisees recruited by the Franchisor that will depend on whether there will be a harmonious development of the franchise network or not.

Many franchisors take hardly any consideration of the profile of their first franchisee: regardless of previous studies or the ability of management and commercial qualities of the candidate, provided the latter uses its own capital to authenticate the accelerated development of the chain; and therefore the success of the concept. Such reasoning is dangerous because an operational franchise is no miracle feat.

It is normal that the franchisor makes a selection of candidate Franchisees. The franchisee is supposed to possess the qualities and resources necessary to ensure a reasonable chance of success.

The Court of Justice of European Communities has pointed out, in the favour of the franchisor, “the right of the franchisor to choose franchisees whose professional qualifications meet the requirement to establish and maintain the reputation of the network”(CJCE28 Jan 1986, aff. 161 / 84 Pronuptia)

In fact, the collaboration that is supposed to take place between the franchisor and the franchisee to implement the know-how, requires that the franchisee is able to perform the required activity, under the common brand without causing prejudice to the entire network by a poor operation.

The first 10 franchisees are always difficult to recruit. It is normal that the young franchisor fumbles. Later, he will have to work very hard to recruit a good “home” developer.

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