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All franchisors face the same challenge: finding qualified franchisees.&nbsp;The secret to finding them lies in first understanding exactly what kind of people your franchise needs to attract, and then effectively making your case to attract them.After all, qualified franchisees aren’t mythical creatures; they’re hard-working entrepreneurs in communities across the U.S. who are looking for great franchise opportunities as much as franchisors are looking for them.&nbsp;1851 Franchise reviewed our extensive catalogue of interviews with franchise development professionals to explain exactly how companies can attract great franchisees.<h4>Define The Objective</h4>Assuming you have your business model down pat, the most important thing to do is build a profile of your ideal franchise candidate. How much money do they need? What experience? What markets? Do you have the bandwidth to support a first-time business owner, or are you looking for a major corporation to sign a multi-unit deal and run with it?&nbsp;“It is important to really know your target audience when it comes to franchise development,” <a href="https://www.linkedin.com/in/valerie-mccartney-87006b7?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-secret-to-finding-qualified-franchisees-2715386" target="_blank" rel="nofollow">Valerie McCartney</a>, VP of franchise sales and development at <a href="https://www.thebrokenyolkcafe.com/franchising/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-secret-to-finding-qualified-franchisees-2715386" target="_blank" rel="nofollow">Broken Yolk Cafe</a> <a href="https://1851franchise.com/frandev-players-valerie-mccartney-vice-president-of-franchise-sales-and-development-for-broken-yolk-cafe-2714918#home">told 1851,</a> “There are two groups of prospective franchisees — multi-unit operators, who are only attracted to brands that have a strong Item 19 and first-time franchisees who want to open up exactly one location. The first-time, single-unit franchisees are the people who want to be their own boss. They are hard-working, but they need a lot more hand-holding. They are risking a big percentage of their net worth and they’ve never taken out a big loan, so they need more support. The franchisor needs to understand the type of franchisees they are going to attract so they can be better prepared to support those specific prospects.”A low investment brand <a href="https://1851franchise.com/low-medium-high-franchisee-requirements-by-investment-level-12521">typically requires a lot of labor from the franchisee</a>, where a higher investment brand will typically see the franchisee hire people to run the business. Figuring out where you fit in on this spectrum goes a long way.&nbsp;Also, just because a franchisee is qualified, doesn’t mean they should be awarded a franchise. A savvy franchisor can only expand into territories it can fully support.Armed with the profile of an ideal franchisee candidate and a map of available territories, the franchisor can then begin to market to them.<h4>State Your Case&nbsp;</h4>A qualified franchisee is a smart, careful franchisee. These entrepreneurs will ask tough questions. They want to know about their return on investment. They’re going to call your franchisees, even the unhappy ones, and they’re going to hold you accountable for what you say.&nbsp;“Profitability is the most powerful picture to paint,” <a href="https://www.linkedin.com/in/reganstokes?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-secret-to-finding-qualified-franchisees-2715386" target="_blank" rel="nofollow">Regan Stokes</a>, president of <a href="https://www.purebarre.com/franchise?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-secret-to-finding-qualified-franchisees-2715386" target="_blank" rel="nofollow">Pure Barre</a> <a href="https://1851franchise.com/frandev-players-regan-stokes-president-of-pure-barre-2714958#home">told 1851</a>.&nbsp;If a business model and FDD clearly shows a path to profitability, then qualified, well capitalized franchisees will flock to it.&nbsp;“Franchisors can't grow if franchisees aren't profitable,” <a href="https://www.linkedin.com/in/lisaoak/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-secret-to-finding-qualified-franchisees-2715386" target="_blank" rel="nofollow">Lisa Oak, chief development officer</a> at <a href="https://biggby.com/category/franchise-development/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-secret-to-finding-qualified-franchisees-2715386" target="_blank" rel="nofollow">BIGGBY® COFFEE</a> <a href="https://1851franchise.com/frandev-players-lisa-oak-chief-development-officer-of-biggbyr-coffee-2714969#home">told 1851</a>. “We often say ‘revenue solves all problems.’ When franchisees are doing well, they tell their friends and family and that attracts additional buyers.”So by clearly profiling the ideal franchisee, creating great unit-level economics at existing franchisees and the targeting marketing efforts directly at desired areas, a franchisor can create a healthy pipeline of qualified franchisees.

The Secret To Finding Qualified Franchisees

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