Sean Cleveland on Franchisee Selection
"Individuals need to be self-motivated, have a ‘cheerful’ personality, realistic expectations around the earnings that a SITB Franchise will generate and most importantly be able to work to a system - our experience tells us that our most successful Franchisees all follow the SITB system and model."
Selecting Franchisees for SITB
Sean joined Snack in the Box, as a Franchise Field Manager, back in 2002. His role for the last 7 years is Sales Director, responsible for the recruitment and selection of new SITB Franchisees. We asked Sean how he works with individuals looking to purchase a SITB Franchise. We look at how to ensure both parties are confident they have made the right ‘long term’ decision when a Franchise is awarded by SITB.
“What qualities are you looking for in a prospective Franchisee?”
Ideally, someone who wants to run the business in a ‘hands-on’ capacity. Our franchise model does not lend itself to running the business as Management Franchise.
Individuals need to be self-motivated and have a ‘cheerful’ personality. Also, realistic expectations around the earnings for a SITB Franchise and most importantly, be able to work to a system. Our experience shows that our most successful Franchisees all follow the SITB system and model.
“Takes us through the ‘steps’ during the selection process?”
From the initial enquiry, we will advise if there is availability in the area where the candidate lives. If this is the case we will:
1) Franchise Prospectus
Email and/or post out our Prospectus to the candidate. This provides a wealth of information about SITB and our Franchise Model.
2) Initial Communication
Have an initial telephone conversation with the candidate. This is to check their individual needs regarding running the business. We will also cover expectations on earnings.
3) First Appointment
Meet with the candidate in their local area to properly present our Franchise face-to-face. This meeting should last 90 minutes and is in the form of a presentation. It will provide further detail and should answer questions from the candidate.
This is an important meeting. We will ensure the criteria of our Franchise Model fits with the candidate’s needs.
This is an important meeting, as we will also ensure the criteria of our Franchise Model fits with the candidate’s needs.
4) Day with a SITB Franchisee
The candidate spends an entire day with an existing Franchisee. This will involve servicing their existing customer base, in a real hands-on capacity. It gives the candidate an ideal opportunity to see how the business works. Also they can ask questions from someone who is actually running a SITB Franchise.
5) Formal Second Appointment
Wiith SITB at our HQ. This involves meeting the rest of SITB Team and reviewing the business and Financials. They will review our Franchise Agreement. Also we will provide candidates with access to other SITB Franchisees.
6) Due Diligence
Using all the information provided by SITB, the candidate must now carry their own Due Diligence on SITB and our Franchise Model. This involves reading the Franchise Agreement and taking their own professional advice. Then review the financials and again taking professional advice, driving the territory, ascertaining how much competition is in the area and speaking with our existing Franchisees.
7) Sign Up
SITB will meet with the candidate in their local area in order to sign the Franchise Agreement. Then they will review what is required from the candidate prior to the Training Date. This will include registering for VAT, obtaining a business bank account, set up accounts with suppliers etc.
The time frame from sign up to the training date is typically 2 to 3 weeks.
“How important is it for prospective Franchisees to talk and meet with existing SITB Franchisees?”
Absolutely essential! These are the individual/couples that are running the business on a day-to-day basis . They have a wealth of knowledge about the business. This includes what works well for them as well as what are the challenges are.
SITB will try to advise of Franchisees to contact those who match individual circumstances and businesses of the candidate. This could include operating the business in a rural area or running the business as a ‘sole trader’.
“Would you ever ‘turn down’ someone who wants to join SITB’s Franchise Network?”
Definitely, there is no point bringing someone into business where we know they would struggle or not achieve their business ambitions. For example, if a candidate contacted us looking for a ‘multi-van’ operation, our Franchise is not geared up for this type of business model.
“What Due Diligence should be carried out by Prospective Franchisees when making a final decision about joining SITB?”
As much as possible. I have already discussed the importance of contacting our Franchisees. But, a candidate should ensure they are happy with the terms of the Franchise Agreement. Our Agreement is for a 5-Year Term (renewable thereafter). This is a long-term commitment for both SITB and the candidate. They should also ensure they fully understand the financial projections. More importantly, what’s required from them to ensure these projections are met. Most projections provided by Franchisors need an amount of business development and marketing, to ensure the sales revenues and profits provided.
“How does someone contact SITB, who is interesting in finding more about the Franchise?”
Simply email or call. We will then advise if we have availability in the area where the candidate lives. If so, we will start our selection process by providing our Franchise.
Call: 0208 8798303