The Covid-19 crisis has turned some cards on the economic level. Without having changed significantly, the conditions for access to the franchise have become clearer, in particular as regards the profile of candidates.
In the franchise sector, too, the health crisis has redistributed the cards. Franchisors and franchisees have had to deal with exceptional conditions and a climate of increased uncertainty. Some sectors have been particularly affected, even leading different networks to create crisis cells in order to support struggling franchisees. However, many retailers continue to open outlets. Just like the Cavavin network of wine shops, for which franchise requests increased by 20% in 2021 compared to 2019.
Faced with this new situation, the network heads claim to be more cautious in their selection of candidates. “Many of them are first-time entrepreneurs who too often adopt employee reflexes. However, it is fundamental not to consider a franchisor as an employer, says Rose-Marie Less, director of development and animation at the French Franchise Federation. If the support provided is a real asset, it must however be borne in mind that the day-to-day operational management is carried out very autonomously.”
The importance of personal contribution
One of the crucial elements to consider when welcoming a new franchisee? The amount of personal contribution. If the latter was, on average, 30% in the financing files before 2020, it tends to approach 40% today, depending on the sectors of activity, according to specialists. Beyond the financial dimension, it is the motivations and the profile of future franchisees that franchisors are now examining with increased exigency.
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“The networks want to ensure that potential franchisees can be able to show flexibility, agility and strength of character. However, they should not be too independent, in order to create a lasting relationship of trust with the head of the network,” emphasizes Rose-Marie Less. To do this, candidates are increasingly subjected to personality tests within networks (Brioche dorée, l’onglerie, Irrijardin, Hippopotamus) in order to identify the type of entrepreneur they are looking for. “If we used to recruit mainly sports enthusiasts before, we are now looking for very good managers above all,” explains Nathalie Roberto, head of network operations at FitnessBoutique.
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Arrive perfectly prepared and informed
“We require our candidates to present us with a three-year business plan. This allows us to make sure that they feel comfortable with the numbers and more broadly with the accounting logic,” points out Nathalie Roberto, head of network operations for the FitnessBoutique franchise. Beyond mastering the accounting and financial dimensions, the networks expect their future franchise partners to demonstrate a real sense of business development. “When we accept a new franchisee, the goal is for him to open other outlets afterwards,” explains Jérôme Poisson, general manager retail of the Columbus café franchise.
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If the candidate does not feel this entrepreneurial desire, this will be a barrier to his entry into our network. We prefer to favor a profile that would be less well endowed financially, but whose state of mind corresponds to our development expectations.”During the recruitment process, retailers usually offer immersion internships with franchisees before definitively validating the project. A decisive moment, which must remind the future franchisee of the required level of requirement. “The quality of the relationship between the network head and its franchisees is essential. We must never forget that this is a mutual choice,” concludes Rose-Marie Less, director of development and animation at the French Franchise Federation.
