What Goes into a Franchise Application?

Many factors go into making franchise success possible. Among them is the selection of the right franchisees. The franchise application plays an important role in helping you identify those franchisees who will be a good fit for your franchising endeavor.

Designing a detailed and thorough franchise application is one way to ensure that you learn as much as you need to know about your prospective franchisees. If your application form asks all the right questions, you will be able to figure out which individuals are likely to contribute the most to the success and growth of the franchise. The most basic sections to include in your franchise applications are explored in some detail below.

 

The Features of a Good Franchise Application

 

First and foremost on the form should be a section for the applicant’s personal information. You should be clear about the types of information you are requesting and the level of detail you want to see. Contact information, biographical data, and information that will give you an indication of the applicant’s character are all crucial parts of this section. It is also important to get the applicant’s educational background, including all training relevant to the franchise in question. Along the same lines, the applicant’s employment history is also relevant. Descriptions of jobs held, their locations, and the earnings associated with them should be provided.

The franchise application must have a section dedicated to the applicant’s personal financial history. Such information should include the applicant’s current source of income, the income amount, any assets or liabilities, and the applicant’s net worth. If the applicant owns a business and has ever participated in some form of litigation or arbitration, this must be indicated. If the applicant is married, information should be requested about the spouse’s personal financial history. If the applicant happens to have partners or financial backers, then their financial information should be requested too. This section is crucial because it is the one that indicates to the franchisor that a particular applicant has the wherewithal to handle the responsibilities that come with running a franchise in good times and bad.

A wise franchisor will include in the franchise application a section in which the applicant is invited to describe what he or she knows about the franchise opportunity and why he or she wants to become a franchisee. This section is important because it gives the franchisor some insight into the applicant’s personality and shows whether the applicant has a realistic picture of what franchising will entail. Another important section that must be included in franchise applications is one requesting applicants’ preferred territories and their willingness to consider other alternatives.