Australian Franchises

Multi-unit franchisee recruitment the key

Written on the 10 March 2011 by Griffith University

Multi-unit franchisee recruitment the key

There may be a potential franchisee recruitment market franchisors are overlooking, according to Asia-Pacific Centre for Franchising Excellence Researcher Dr Stephen Bennett.

“Instead of only considering single unit suitability in the initial franchisee recruitment process, franchisors should consider suitability for multiple unit ownership from the outset, and target their recruitment strategies accordingly,” Dr Bennett said.

“Often senior managers from a corporate background make ideal multi-unit franchisee candidates, as they have the skills required for multi-unit franchise success as well as sufficient capital to establish multiple businesses.

“For the senior managers, franchising can provide an investment vehicle for growth and expansion, regardless of whether they have industry-specific experience or not.”

Dr Bennett identified the potential market during his doctoral research into franchisee recruitment.

He said franchisors were beginning to focus more on multiple unit ownership for expansion, however were taking a reactive approach.

“Most franchisors are looking within their franchise systems to offer multiple units to successful franchisees due to a lack of suitable franchisee candidates, rather than targeting potential multiple unit owners from the outset,” Dr Bennett said.

He said franchisors need to consider targeting senior corporate managers.

“Franchisees with corporate management experience are often better equipped to deal with the challenges of multi-unit ownership,” Dr Bennett said.

“Often with multiple unit ownership the first unit will suffer from a lack of focus as the newer unit demands more time and energy.

“However franchisees with corporate management experience are more likely to be equipped through their existing skills set to minimise any negative effects on the original unit, providing better outcomes for both the franchisee and the franchisor.”

It’s still recommended to ensure franchisees can successfully operate one unit before granting two or more. 

For more articles like this one please go to the griffith university website by clicking here.

Author: Griffith University

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