Once you have shortlisted franchise companies, these tips to succeed at the franchisor interview will be very handy. They help you make a good impression.
Before shortlisting the list of franchise companies to purchase, find out are you ready to be a franchisee?
Also we suggest you do some basic research on the tips to consider in buying a franchise.
The first test of your candidacy by the Franchisor, will be based partly on your ability to follow the process of the Franchiser. Thought not exact, below are the steps in process.
Franchisor Interview begins with a call to the Franchisor’s development officer. The purpose of the call is to check your ability to afford the franchise, what motivates you, your skill set, discuss deadlines and set an agenda for decision making process to keep it moving forward.
Honestly is important at any stage during this process. For instance, you might be disqualified if you under state your net worth. Or you might face set backs in few weeks down the buying process, if you over state your net worth. And since there will be multiple franchisors interviews, it is better to take notes to keep track of these conversations.
If you intend to buy a franchise a year from now, do not waste time by learning about the territory that might be sold by the time you are ready to buy. Be ready to committing to make a decision (not what the decision will be) in 12-14 weeks (an approximate timeline). Get this right before you call the salesperson.
After the first call, the franchisor will send brochures/e-brochures, videos, FAQs and a Confidential Information Request Form (CIRF). The CIRF will request for contact information, educational background, business experience, income, balance sheet information, banking information and references. It will also ask for a release for background check to be done. Once this information is completed, the second call will be scheduled. The CIRF does not commit you to anything, but ensures you are financially and objectively qualified to be a franchise. It is important to fill the form accurately and completely as possible, to move forward.
On completion of CIRF, the franchisor will initiate the sale process to help you understand the franchise better. A good franchise will encourage you to say no at any point if you decide not to invest with the franchise.
First, the franchisor will call you, to review the CIRF and to understand your answers. They will review their offering in details with the brochure and other information provided to you. then they provide you the franchise disclosure document. This is followed with a call to review it, discussing your franchise territory, walking you through the process of getting financing and introducing you to various members of the franchisor’s team.
Finally, they will invite you to a face-to-face meeting at the franchisor’s headquarters (which is often called Discovery Day). Give your decision as soon as possible after Discovery Day.
You will be going through this process of Franchisor Interview with several franchise companies based on the number you shortlisted. Inform the salesperson as soon as you decide against the franchise and continue to narrow down the list.