In this article posted on Entrepreneur.com, iFranchise Group CEO Mark Siebert discusses the importance of having a detailed process in place for franchisee candidate assessments. He also notes that part of this critical process is knowing when to walk away from a potential sale to an under-qualified prospect.
He acknowledges that after putting in all the time, funds and efforts to establish a franchise offering, it’s often a challenge for emerging franchisors to know when to say no. Having gone through all the steps of strategic business planning, documenting operations, developing franchise marketing materials, and having legal counsel create franchise legal documents, newer franchisors are naturally eager to make that first franchise sale.
However, according to Siebert, “Assessing the qualifications of the franchisee, and ultimately doing what’s needed to assure their success, is one of the most important priorities for any franchisor. But that comes second to knowing something more vital: when opting not to sell is the better decision.”
In this article, Siebert provides guidance on the dynamics of franchise sales, ownership options, the importance of candidate selection based on hard and soft skills, all with an eye for helping franchisors avoid making costly mistakes as they embark on their franchise sales efforts.
