Item 2: Business Experience
Content: A listing of all the key individuals, ranging from partners and directors to top executives with management responsibilities for the franchise. It will state the occupation and employer for each person over the past five years.
Purpose: This section is sort of a “group resume” as you qualify franchise prospects. A review of this section will give you an idea of the length and types of business experiences of your prospective business partners.
Tips & Advice: A franchise relationship generally extends over many years. Given the duration and the significance of the business relationship, you absolutely must know as much as you can about the people who will be your partners. As you examine the credentials of the franchise leadership team, give thought to what types of businesses they’ve been in and whether those experiences are meaningful for the business you’re studying. Ask yourself, “If I have a problem with my business, do I think these folks have the knowledge and track record to assist me.” You also want to look for people that have significant experience in building franchise systems. Over the years I have noticed that if the top personnel have business, management and franchise experience, it generally results in stronger, healthier franchise systems, regardless of the current size of the franchisor.