When To Say No to a Franchisee Candidate

It’s an inflection point in the franchisee qualification that no development officer likes. It’s the moment they see the writing on the wall: This candidate simply is not a fit.

Whatever the reason someone says no to a franchisee, it’s usually a difficult decision. So how do you know that you’re making the right one? 

Here are some guiding principles about turning down a franchise candidate from two industry pros. 

Why No Is Important 

“You’re the gatekeeper for the brand,” said Joe Szynkowski, senior director of franchisee recruitment at NuVinAir, a maker of automobile air-sanitation products. He says that it’s the franchise-development professional’s job to let the right people through the gate. That’s because the wrong franchisees can wind up wasting a lot of people’s time and money, as well as hurting the brand overall, he says.

The Dallas-based franchise, which currently has 10 franchisees across the country, representing 54 territories across 17 states, learned this lesson the hard way, said Szynkowski.  

It recently switched from a franchise model after trying to accelerate growth through a distribution model, which gave them fast growth but little control over how the brand was growing. 

“I think with many early concepts, it’s easy to become overwhelmed by the opportunity to grow quickly,” Szynkowski said. 

But that growth can come with a cost. Early adopters may not have enough working capital to robustly build out their sales teams, others may lack business leadership experience, while others may not fit the company culture, he said.

Those three criteria — capital, experience and a cultural fit — seem to be true no matter what the industry or product. That’s why having a strong process for understanding how a candidate fits into your brand is crucial, said Jamie Yarmuth, CEO of 92-unit, Orlando-based Sonny's BBQ.

“We’re very intentional and detailed in our vetting process,” Yarmuth said. “It’s so we ensure that the partnership is a great fit for both parties.” The brand’s interviews include talent assessments that help them understand if the candidate is a fit. That includes having a strong commitment to community involvement, which Sonny’s touts as a core part of its business. 

Watch for These Red Flags

So are there any obvious signs that franchisors should look out for? These are some red flags that may indicate your candidate won’t succeed with your brand.

Poor financials: This is the most obvious red flag, but keep in mind “almost there” doesn’t always cut it, either. An undercapitalized unit will start with a handicap, and its race may be over before it begins. 

Arrogance:  Szynkowski said an immediate red flag for him is people talking above their experience level. The attitude makes him wonder if they’re a team player or a go-it-alone type.

Prior negative experiences: If the candidate has experience in the franchising world, but talks about how bad their experience was, particularly if they have a tendency to blame others for past failure, look out. 

No interest in the product: For Yarmuth, that means bringing some passion. “You have to have a deep, genuine love for barbecue,” he said. For Szynkowski, that means the candidate is looking for a passive investment, instead of hands-on management. “That’s the ultimate red flag,” he said. 

No interest in your values: Yarmuth believes that community involvement is a big part of the brand. He wants to see in his candidates the positive attitude, optimism, and commitment to giving back.  

The Right Way To Say No to Franchisees

Skip the email: “Never say no in an email,” said Szynkowski. “And you better be ready to answer why you’re not moving forward.” By that point in the process, the candidate has invested a lot of time, and perhaps money if they attended a Discovery Day. He said it can be an emotional moment for the candidate. They deserve a face-to-face answer. He said the conversation doesn’t need to be long, but it needs to be clear and unambiguous. Be sure to explain why they were not a good fit. 

Know the candidate: “The franchisee vetting process with candidates should always be personalized,” Yarmuth said. He does this by recording notes during the process in order to provide detailed feedback to the candidates. “It will provide clarity and help candidates understand the reasoning,” he said. 

Be kind: It’s important to show kindness and empathy throughout the process, even if the answer is no, Yarmuth said. “Ending conversations with a franchisee candidate is never easy— for both parties.”