Completing your franchise awarding process.

OK, you have finally reached Step Six in your franchise awarding process…the final step determining how well you conducted Steps 1 – 5….and whether your company has decided to award this candidate your franchise.

 YOUR CANDIDATE'S INVITATION TO STEP 6—SET DATE TO MEET and AWARD THE FRANCHISE

 My suggested invitation goes like this:

 “Mr./Mrs./Ms. ______, we have completed 5 of the 6 steps in our franchise awarding process. Now it is time to complete STEP 6, which is the session when we review all of our previous conversations and investigation steps to decide if it makes sense to both of us for you to join our team of franchisees.  I have our company leadership’s evaluation of your application and would like to review it with you.   

Everything looks quite favorable, and yet, the company asks that we review everything together to ensure we “are on the same page” and neither party is making any wrong assumptions.

 So, we need to select a day/time to conduct this conversation. We prefer to do so in our office, preferably around 10:30 or 11:00 am on a weekday. Would you (and your spouse) be able to come to our office during that time one day this week…or next?   

 Thinking positively, assuming all is OK after our conversations, I suggest we do the following:

·       Complete your franchise agreement,

·       Remit your initial franchise fees,

·       Visit with members of our company’s leadership team,

·       Introduce you to our Start-up training director, and

·       If you have time, we can have lunch.

These procedures should take about 2 hours, plus lunch.

 NOTE: IF the candidate can come to your office, then do NOT present the two other options below. Just book the appointment and be happy.

 If you cannot visit our office to conduct the above events, then we have two other arrangements to consider, i.e.,

·       We find a location that is convenient for both of us to meet and conduct our conversations. If all is good, we can complete your franchise agreement, remit your initial franchise fees, and have lunch. Do you have a suggestion for a quiet meeting place? , or

·       We can conduct our conversations by phone, and if all is good, we can complete your franchise agreement via DocuSign. You can then either send us a check or transfer funds to cover the initial franchise fees.

  Under the latter two options, we would then schedule a time for you to come meet with our leadership team members and start your “business opening” package.

 Which option would work the best for you?

 NOTE: Your objective is to conduct STEP 6 within a few days after your invitation. The important thing is not to wait weeks to conclude your franchise award. That’s a great way to lose your candidate. Things happen. A couple of days is good.

 OK, now that you have arranged to meet with your candidate for STEP 6, here are my recommendations for conducting this event.

 GREETING: Exchange Pleasantries. For Example, “Welcome Mr./Mrs./Ms._______.  How was your trip to the office? Can we bring your coats? Would you like something to drink? Etc.

 CONDUCT YOUR STEP 6 CONVERSATION

 NOTE: Before you enter Step 6, revisit your findings from each of the first five steps. Not just superficially, but in some detail to make sure you don’t miss a thing that could influence your candidates(s)’ intentions of moving forward…or not.

 If you did a great job in steps 1-5, then this step should be a success. Just be aware that sometimes, your candidate may have encountered an unexpected issue during their time in this process that is causing them to pause or exit your final qualifying step. Do not anticipate such an event, just be aware and have a plan in mind, IF something interferes with your franchise awarding process. Work on your plan(s).

 Below, I list the verbiage I typically use. Modify as you see fit.

 Here are some tips I have learned over the years for Step 6.

 TIP #1

 WHEN POSSIBLE, PLEASE conduct this Step IN PERSON in your office, so you can make eye-to-eye contact,  have access to your company’s leaders to congratulate your new franchisees, and have your retail support person help them get started on their retail business.

 If you can’t conduct this step in your office, consider conducting it in your candidate’s home or select an offsite location that works for both of you.

 I understand there will be times when you will not be able to conduct STEP 6 face-to-face ANYWHERE. In such cases,  you will need to resort to electronic communication, which certainly can be done today via DocuSign or similar technology and overnight mail. When this is the case, stay on the phone with them while they sign their franchise agreement and other paperwork electronically, so you can answer any questions, and remind them to initiate their electronic payment process that day, if they can.

 I have awarded franchises in all three of these situations. They all work. The latter option does require you to be clear and personable via your cell or office phone, whichever is most reliable and private.

 TIP # 2

 REGARDLESS OF THE LOCATION, remind your candidate to either

·       Bring you a check, or

·       Arrange for funds to be electronically transmitted to your company to cover their initial franchisee fee and any other fees your company requires at this time.

·       REMEMBER: Without this payment, you have NO franchise sale.

 TIP # 3

 ADOPT A POSITIVE, FRIENDLY, BUSINESS, ATTITUDE

 What does this mean? Exactly what it says. Be upbeat and friendly; yet, you want to be firm and steady. Not authoritarian or stodgy, but warm and in charge.

 TIP # 4

 MENTALLY ASSUME THE SALE, REVIEW STEPS, AND GIVE YOUR COMPANY’S RECOMMENDATIONS

 In your mind, “assume the sale”. The right words will follow. Remain polite, and yet, retain a “straightforward” presence, and say, “Let’s briefly review the steps we completed in this process, and then I will inform you of the company’s recommendations.” 

 SUGGESTION: This process should be a mild “takeaway.” Make sure you go through each step as described below, not signaling your company’s acceptance or rejection of their application, until you are finished with your review of all steps, as noted below.

 Reviewing Each Step’s Conversations…One Step at a Time

 “ Mr./Mrs./Ms._______, let’s first review our conversations from Steps 1 – 5. The steps were:”

 STEP 1  Build Trust Between Us

STEP 2  The Program Review

STEP 3  The “Tweener”

STEP 4  Discovery Day

STEP 5  Candidate(s) Talk with Existing Franchisees

 “OK, in our STEP 1, we got to know each other a bit, so I could learn more about your goals and objectives for building a franchised business. Right?  What I learned was…

You were looking for…”

 Restate the goals the candidate gave you at that time. Verify goals with the candidate. “Are these still your goals for building a business? Do you envision achieving these goals by building this franchise?”

 “In STEP 2, we reviewed several aspects of building this franchise and the programs the company provides to help franchisees build their businesses. Do you have any questions about either of these conversations?”

 “In STEP 3, we:

 ·       Reviewed your completed Confidential Questionnaire,

·       Verified that you have access to the funding necessary to purchase and build this business, and

·       Reviewed our Franchise Disclosure Document (FDD).

 Our company accepted your responses to the questionnaire and is satisfied that you have access to the necessary funding to purchase and build this business. We reviewed the FDD by phone a few weeks ago. Do you have any further comments on these three reviews?”

 “STEP 4 was Discovery Day. The purpose of that event is to give you an upfront and personal observation of our company’s leadership, support team, and offices.

 We would never accept a candidate who did not participate in Discovery Day, and we would never expect a candidate to join our team if they did not attend this event.

 Did Discovery Day help you gain insights into our company that illustrate how we support our franchisees?”

 “STEP 5 is intended to help you talk with our franchisees. We understand this is a valuable source of information for you. If I remember correctly, earlier you gave us your feedback about what you learned in talking with our existing franchisees. Was this a valuable learning experience for you?”

 REVEAL THE COMPANY’S ACTION

 “Mr./Mrs./Ms. _______, does the above description of STEPS 1-5 reflect your understanding of our candidate-educational program and our conversations throughout?

 “As I have emphasized previously, we work hard to assess the degree of match between our business and the goals, capabilities, and objectives of our candidates.  It makes no sense to bring aboard candidates that we know will not be able to build this franchise.

 “If our leadership offered you ownership of our franchise in your selected location, would you be inclined to accept our company’s invitation to join our team as a franchisee?

 “If so, I most certainly support our company’s leadership decision to approve your application to become a franchisee in our business system. I think you will make great franchisees.

 Exchange each other’s support statements, shake hands, etc.

 “Now, as we both know, we have some paperwork to complete. Let’s go through it.”

 COMPLETE THE PAPERWORK NOW

 You, your franchise attorney, and your supervisor will determine the exact paperwork your company requires candidates to complete along with your company’s franchise agreement (FA).  

 Line up each item to be signed by our candidate, complete with tags on those pages to be signed/dated. “Walk through” the FA with the candidate(s), so they know what they are signing.

 My advice is when “the candidate” is a married couple, make sure both husband & wife complete the paperwork.

Same when an adult and one or more of their children (recognized as an adult) are going into this franchise together and each one has completed all STEPS 1-5.

 Make sure you complete as many copies of the signed paperwork as your company’s attorney and officers require.

 When your STEP 6 is conducted in your company’s office, once the paperwork is completed, introduce your new franchisee(s) to a member of the company’s leadership team. Give them a few minutes together, as directed by the leadership member.

 Then introduce the new franchisees to at least one member of your company’s support team. When possible, introduce all of your in-house support team. Have a toast to salute the new owners, but NO alcohol!!!

 Then have lunch with whomever you and your supervisor agree to. Following lunch, arrange a support team member to start the new franchisee’s training. Just 30 – 60 minutes for now.

 When everything is finished, escort the candidates to their car. Tell them you look forward to working with them throughout their franchise ownership. Offer to help however you can.

 NOTE: When you conduct STEP 6 away from the company’s office, the above procedure needs to be altered to fit your setting.

 For example, after all paperwork is completed, you can call the office and have a company executive and a member of the retail support team talk with the new owner(s) by phone. Perhaps they can set up a time for the candidate(s) to come into the office to meet the team and begin their retail training.

 The same can be true when STEP 6 is conducted by phone and DocuSign.

 POST-FRANCHISE AWARDING CEREMONY STEPS

 1.  Congratulate yourself! You just completed a franchise award! Way to go! How did that feel? With hope, it felt great and satisfying. Awarding franchises is why your company retains your services. And, you did just that!

 2.  The next day, I suggest you do these things:

 a.  Once you receive notification that the candidate’s funds cleared, your attorney (or office manager) verifies that all of the paperwork was completed correctly, write/send a brief WELCOME note to your new franchisees (everyone who signed the franchise agreement) OVER YOUR COMPANY’S CEO or PRESIDENT’s SIGNATURE.

 Once again tell them that you look forward to collaborating with them. Remind them of the day/time they set up with your retail support person to come into the office, meet the team, and begin their retail training.

 Also, notify all existing franchisees about your new franchisee joining the company’s franchisee team!

 RETURN TO YOUR LIST OF OTHER CANDIDATES  TO QUALIFY THEM TO COMPLETE STEP 6…Awarding them a franchise!!!  

 Again, congratulations.

                                                    ###

Mick Riddiough

Franchise Consultant

336-575-9585

mariddiough@gmail.com