A critical early step in any franchise business investment is an interview with the franchisor that gives them the opportunity to assess your candidacy. The ideal investor is hard-working and motivated with a strong financial foundation, is willing to work within a franchise network, and possesses the energy and enthusiasm to help sell and build the brand.
As an investor, your interview is a chance to showcase your passion for a brand or business opportunity and learn more about your potential business partner. To present yourself in the best possible light at your franchise interview, it’s important to be prepared and understand what the experience is all about before it happens.
A franchise interview typically happens after you’ve made a formal application to invest in a particular franchise opportunity and had some sort of initial exchange with the parent business.
Think of the interview as more of a conversation, a two-way street. Sure, it’s primarily a chance for the franchisor to learn about you and the things that make you special, but it’s also an opportunity to learn more about the franchisor you’re considering. You can unearth a lot, not only from the answers to your own questions, but also from what’s asked of you.
Be ready to discuss: Your finances
It can take time to become profitable when launching a new franchise business venture. The franchisor will want to be certain any new investor is financially stable enough to endure some lean times at the outset. Even though your relevant information was probably part of your application, make sure you have these details on hand for easy reference at the time of the interview – you won’t want to stumble on a question about your financial qualifications.
While it may feel uncomfortable to reveal details about your net worth and liquidity, consider the interest the mark of a franchisor who cares enough to ask. Conversely, if the franchisor you’re dealing with is only interested in obtaining your franchise fee and doesn’t express any concern about your long-term stability, you might want to consider investing with a different partner.
Be ready to discuss: Your experience
Experience in the field isn’t always a necessity for investment in a franchise business – your franchisor should provide appropriate training before you officially launch. Even so, some familiarity with the sector is always an asset, so make sure you do some research.
Perhaps of equal or more importance are the hard and soft skills you would have gained through previous work experience, or previous experience owning a franchised business. With franchising, there’s often a lot of crossover in requirements, such as having the right amount of motivation to work hard and within a system. If you’ve been a franchisee before or have experience managing a team, try to position that background as a strength.
Make sure to ask about: The business model, and the fit
In most cases, running a franchise business means following rigid policies and procedures established by the franchisor. The intent is to ensure consistent, quality delivery of the product or service at multiple locations, a key plank of customer loyalty.
Use your interview to ask any questions you might have about the basic business model and operational policies, including where and when you might have the freedom to deviate or experiment. It’s also worth asking any questions you have about the training you’ll receive before launching, and the support you’ll get afterwards. As much as you can, be honest about your goals and ideas for the future, as it will help you find out how well you’re aligned with the franchisor on key issues.
