Franchisors need to have financial standards for their franchise candidates. In fact they are a 'must have' in your franchising sales and recruitment process.

And your franchise candidate financial requirements for net worth and liquid capital (cash or cash equivalents) should match up with the Item 7 Estimated Initial Investment in your Franchise Disclosure Document - FDD. And be bankable by meeting or exceeding bank lending requirements. 

Now I look at a lot franchise sales processes and a big area of opportunity to generate more franchise sales is your application. Most franchise salespeople don't think of their franchise application as a candidate attraction and sales tool. 

I think you should. And here's how.

You should use the 'Joe Friday Dragnet Approach" of "Just the Facts Ma'am". You want the 'bare essentials' at this stage and most franchise applications ask too many questions gathering information the franchisor and sales team will not ever use.

Let me ask you how many times do you look at the franchise candidates application after you have confirmed they meet or exceed your requirements?

Okay here's the quick fix list of do's and don'ts. 

  1. Do make it easy to fill out the application. Get it to 20 minutes or less.

  2. Don't ask for Social Security numbers at this stage. You don't need to.

  3. Do get the 'bare essentials' of net worth and available cash. You need to know they qualify.

  4. Don't let someone in the Finance or Accounting Departments control this part of the franchise sales process. You need to. Franchise sales is your thing.

  5. Do keep your franchise application to one page. You'll get points for this with candidates and more will apply.

Remember it's the financial wherewithal of the candidate that's important. And the trust you build at the beginning of the sales process. It's not about making people do more work than is necessary. You're not the Department of Motor Vehicles.

Have the right financial requirements for your concept. But make it easy & dead simple to apply.

We fix gaps on franchise sales processes. And if you need me to look over your franchise application process call me at 443.502.2636 or [email protected]

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