What's the major qualification most franchise systems ask you to meet before you hand over your cash?
And how does their criteria for selecting franchisees compare to the hiring process all successful companies put their potential candidates through?
If the franchise you are looking at is like many of the new or small franchise opportunities on the market today then ... the main qualification is money.
Do you have the cash to buy the franchise?
But is that the right question?
After all, what you are really buying -- in most cases -- is not a business but a job. So doesn't it make more sense to make sure the new franchisee has the qualifications to be successful in their new job before you talk about the money?
Imagine if companies changed their hiring process to a "pay for employment" model where the person with the most cash gets the job, regardless of qualifications?
Yet that's the franchise model in many cases.
And that's the number 1 reason franchisees fail.
The franchise doesn't fail. Franchise owners and franchisees fail.
Sure, some forward thinking franchisers understand their long term success is directly linked to the success of their individual franchisees. But many don't. Many think their success it tied to the number of people they can sucker into handing over $5,000, $10,000, $30,000 or $50,000 or more for a job that may or may not work.
Don't make this mistake.
One more trap to avoid:
Some franchise sales people pretend to put you through a "job interview" like qualification process. But truthfully, it's a thinly veiled attempt to manipulate you out of money.
The design of these qualification processes is to get you thinking: "Well, if they think I qualify -- and they know more about it than me! -- I must be a good fit".
What's the solution?
Ask yourself: "If this was a job interview instead of an offer to buy a franchise would I be in with a chance to win the job?
If the answer is yes then move to the next step in your due diligence which should be to discover how many people with similar qualifications to you are succeeding with the same opportunity.
If the answer is "No". Walk away or be prepared to find and pay someone qualified to run it for you.