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Franchisee Profiling

Businessmen Talking in Office

Profiling. You probably read that word with a sigh. It brings up negative connotations from the all times we hear people using it for bad reasons.


However, profiling can be used in a productive way. Several franchisors use profiling to figure out if a candidate would be a good match for their franchise system. By doing this, the franchisor can save itself – and potential candidates – money and invaluable time if the relationship is destined to not work.


How do franchises profile candidates? Many have dedicated resources in-house that know the franchise inside out, and are aware of the questions that need to be asked to figure out if a candidate should move forward in the franchise buying process. But sometimes it’s good to have an objective perspective. This is where third-party companies like Zoracle Profiles come into play.


Zoracle is led by president and chief scientist, Rebecca Monet, who has been doing work in the franchise consulting and psychometric assessment field since the 1990s. Recently, Rebecca shared how these types of assessments enhance accuracy and predictability in franchisee selection.


For some background, Zoracle goes beyond the typical behavioral surveys used by employing science-based profiling tools. Specifically, the Spot-on! Profile uses a “meta-analysis approach, where we use five different sciences to assess a prospective franchisee,” explained Rebecca. “This gives us a much higher predictability than using a single science. It’s kind of like doing an expanded blood profile versus a single test of your blood chemistry.”


Effective evaluation is critical to franchisors in growing and sustaining their brands. The more franchisees a franchisor has that require extra assistance, the more time and energy is taken away that could’ve been dedicated to other market opportunities.


The questions are developed using reverse engineering. By looking at a franchise’s current, successful franchisees and figuring out the factors that make them profitable, the franchisor in collaboration with an assessment company like Zoracle can hone in on the attributes that work best for their system.


Businesswomen Shaking HandsAnd it’s surprisingly quick for the amount of information gained. Depending on the module, it can take from 5 minutes to 12 minutes. Much different from the SAT-like behavioral assessments taken in high school. Some franchisors even have it built into the lead process in a game-like fashion, so candidates start the assessment from their initial info request.


But for those candidates who are introduced to the assessment process later, do they balk at the idea of this expanded testing? Usually not.


As Rebecca explained, “most [franchisors] are straight up with their prospective franchisees and let them know, ‘Just as you would do your due diligence on us as a franchise system, we need to do due diligence on you.’” Most candidates understand that the franchisor getting a look into their business acumen, values, and how they might fit into the organization benefits them as well.


According to Rebecca, the number one goal of these assessments is to always help franchisors “do a better job of fully understanding their prospective franchisees to determine if there’s compatibility, and if this particular franchisee can perform. We want to mitigate the risk [to franchisors], if possible. We can’t always through our intuition or interviewing process know if this guy or gal will be right.”

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