Franchising: Pathway to Wealth Creation

Chapter 5. Selecting and Monitoring Franchisees

The average franchise license agreement term is almost 15 years.^[1] Choosing the right franchise and choosing the right franchisee are very difficult. Clearly, creating the best business format with the highest potential, as described in earlier chapters, is an important start. But there are no perfect selection methods, and monitoring behavior and performance for both franchisor and franchisee becomes a high priority. But, because of the need to make sure partners are meeting each other’s expectations, they sometimes miss superior performance. The most astute franchisor monitoring, control, and feedback loops are important aspects of a high-quality and evolving SDS. Remember that both you and the ...