Recruiting Franchisees in a Competitive Market
More questions on running a franchise? Find out here
More questions on running a franchise? Find out here
The UK franchise industry continues to experience growth in spite of economic uncertainties across the board. In fact, it is an industry that has proven to be resistant to the recession. Currently, the UK franchise industry contributes over £15 billion to the UK economy.
People venture into franchising to have financial independence and a better work/life whilst using a tried and tested business model. About 50% of the franchisees in the UK choose to franchise as a way to own a business without having to think of an original idea and develop it from the ground up. This number is not surprising at all when you consider that over half of all independent businesses will fail within the first two years of operation. In comparison, 90% of franchises have profitable returns within the first two years.
With the growing interest in franchising opportunities in the country, parent companies that are interested in increasing their franchisee numbers need to ensure that they use effective marketing and recruitment methods. In spite of the rising interest from people from all sorts of different backgrounds who are looking for the right franchise opportunity, there are still a number of challenges involved in franchisee recruitment.
Challenges faced by franchisors in recruiting franchisees
It is safe to say that franchisee recruitment requires a great deal of planning and resource to become a well oiled machine. A large number of people may love the idea of running their own business enough to do the research and make enquiries, but they may not necessarily be confident enough to ultimately take the plunge and invest without the right reassurances or explanations. Franchisors need to develop a franchisee profile according to the level of experience and knowledge required to run the business in question.
For example, if a franchise requires management skills, franchisees should be selected according to a specific skill set which would likely include organisational skills, staff motivation, customer service, and some level of experience with the sector in question. Another essential aspect of profiling franchisees is their capability to finance the investment of course. No amount of experience or enthusiasm from an interested franchisee will compensate for an inability to proivde the required capital.
Choosing the right channels for recruitment
There are a number of different channels used to for recruitment by franchisors, such as:
- Franchise exhibitions. Franchisors can join annual events run by the British Franchise Association and other event organisers to introduce new franchise opportunities to interested parties. One of the main benefits of exhibits is the opportunity to reach out to a pool of people who are actively involved in the industry. A franchisor can build their network, as well as present the business prospectus to great leads.
- Referrals. This method works by utilising an existing network of industry professionals who will refer individuals that fit the required profile of the franchisee. Some franchisors also employ agencies that will recruit franchisees for them.
- Franchise websites. Another excellent way of recruiting franchisees is through online portals. Individuals who are actively looking to franchise UK businesses use websites for listings of franchise opportunities UK.
These traditional methods of recruiting franchisees have worked time and time again. Nevertheless, there is an emerging trend to use conventional recruitment methods in conjunction with targeted digital channels. Franchisors invest in digital marketing strategies like SEO, PPC, and social media channels to reach out to a larger audience and turn online leads into actual franchisees.
Benefits of an integrated approach to franchise recruitment
Success for both franchisor and franchisee does not end when a franchise contract is signed. The current approach to recruiting and retaining franchisees involves harnessing the power of online portals and recruitment websites to not only educate, but also to nurture individuals who are new to franchising. This integrated approach by Start Your New Franchise also has the following notable benefits.
- Focus on identifying the franchisor’s objectives in order to create concrete and achievable goals in recruiting franchisees.
- Training materials and interactive programs can be designed to help acclimatize new franchisees into the program.
- Helps the franchisor create a support program that will be helpful in ensuring the success of the franchise and the ROI for the franchisee.
- Helps the franchisor reach their specific goals regarding the number of franchisees recruited and retained.
- Actively use online tools and marketing strategies to advertise franchise opportunities effectively.
- Increase the turnover of new franchises to franchisees recruited through the online portal.
An integrated approach marries traditional methods and digital channels to cater to franchisors and franchisees alike. If you are keen to open your business for franchising or are a franchisee considering a productive investment, Start Your New Franchise is here to help.
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