A franchisee is a business partner. Hence, it is important for both franchisor and franchisee to select a correct partner. The reputation of business depends on quality of service provided by the franchisees. Hence it is very important for the franchisor to select a suitable franchisee. The selection of franchisee can be a long process involving many steps. Some of the parameters considered are :
- The Financial standing - Does the franchisee have adequate fund to invest and operate a successful business?
- Infrastructure - Does the franchisee have the right infrastructure? A franchisor of a food chain would insist on a centralized location. Franchisor of a training institution
like Frankfinn or Aptech would insist on adequate space and equipments like
computers. - Reputation and experience - Does the franchisee have a good business reputation?
Does he have experience of running similar or related business? - Compatibility in working styles - Since the franchisee is a business partner he/she
should have similar vision, mindset and thinking. Anita Roddick, the founder of
Body Shop which sells cosmetics products considered business as vehicle for social
service and change. Accordingly she looked for franchisees who had a common
goal of servingthe community.