If you are interested in running a franchise business, you need to take into consideration the process behind deciding which franchisee the company will choose to open their new franchise. Most franchisers talk of "awarding" franchises, rather than selling them. The difference is that they won't sell to just anyone who values the same things and is financially qualified. The franchiser is taking a risk by letting you into their system - here are some of the things they look for using a series of questions and different scenarios.

Financial Capability

You don't have to have a six-figure bank account but you do need to a) show some resources of your own and b) show that you understand how to obtain money to cover franchise fees, start-up costs, and operating capital. You can do this through loans, friends, and partnerships. The last thing a franchiser wants to do is put someone in who doesn't have enough capital to get over the initial customer ramp-up period. You make the cut if you show you understand how to obtain capital.

Motivation

This seems obvious, and most candidates would say that they are successful people who have always been self-motivated. Your house is on the line, after all, so of course you're motivated to succeed. But this goes more to what happens when things are hectic or there are challenges unique to your area. Franchisers want to know that you're motivated to seek help within the system (franchisees, business consultants, and other resources) - that you recognize this is your business. The franchiser has many tools and resources for you to use. But it's up to you to ask for them and to implement them.

Passion for Product or Service

Passion overcomes many obstacles. Franchisers want to know that you can be an evangelist of their brand, to promote the products and uphold the trade dress in your market. A passion for the brand indicates a franchisees willingness to overcome challenges, while still keeping the brand's best interests in mind. Passionate franchisees are generally more successful than others who just "want to be their own boss."

Reasons Behind Franchising

Very often, candidates will sit in interviews and expound on how they would do things or offer tips as to how to make the system better. These tips are appreciated when they come from existing franchise owners, but most often are red flags during the interview process. A franchise system is just that - a system. Franchisers need to know that you are willing to work within the system and that you're not just buying a franchise because you can get open faster and then do whatever you want (it's your business right? You can sell magazines and tourist items in your sandwich shop if you want to right?).

Good matches are like good marriages and take just about as much work. If you do your research, and are honest during the application and interview processes, your new relationship will have a firm foundation.

If you're out to impress the franchiser and you oversell yourself, there's a good chance neither of you will be happy with the partnership. Find what you love to do, then do it with passion.