In the Philippines , the average franchise agreement term is between five and 15 years. If choosing the right franchise is difficult enough, then choosing the right franchisee for franchisors is easier said than done.
Clearly, formulating the best franchise business format with the highest sales potential is an important start. But the success of any franchise business also depends on the performance of the franchisee acquiring it. [See six tips on franchising your biz here]
Thus from the beginning, the franchise applicant must make the fit, and careful evaluation must be done by the franchisor in order to ensure that the franchisee is truly compatible with the franchisor’s philosophies and standards.
At Lots’A Pizza, a number of tools have been created and designed in order to distinguish the compatible franchisees from the rest of the applicants. Initial documents like letters of intent and franchise application forms submitted by the franchise applicant are prequalification tools.
Potential franchisees are rated according to physical health, age, number of dependents, income status, accessibility to his chosen location, business experience, personal involvement in the business, educational attainment, and other businesses. [Find out if you\\\'re ready for a franchise here]
A thorough background and credit investigation is also conducted by a third-party agent to ensure that the applicant is of good moral fiber and possesses excellent financial standing with a good history of paying habits.
Franchise applicants undergo a series of meeting sessions upon applying for a Lots’A Pizza franchise—preliminary meeting, franchise orientation, panel interview, executive meeting with the chairman and president (a very critical meeting), and finally, franchise training.
These meetings are designed so that we could unearth little by little the applicant’s true character—a franchise applicant could conceal his true personality or attitudes due to his eagerness to acquire the franchise. Psychological and intellectual assessments are also done through a so-called franchise applicant suitability test (FAST) in order to evaluate the franchisor-franchisee compatibility.
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