With your brand’s reputation on the line, whom can you trust and where do you find them?

By Mike Rotondo

In January, we opened our first Tropical Smoothie Café in California — a huge milestone for our 19-year-old brand. For any franchisor that has entered a new market, it can be nerve-racking. You start to ask yourself, “Is this the right place? Is it the right time?” But for those that have made the leap into a new state with a new franchisee, that’s what can keep you up at night.

CEOs often emphasize the importance of having great people on their corporate teams, but I also feel the same about our franchisee partners. Sixty percent of Tropical Smoothie Café’s new franchise agreements come from existing franchisees, so if we find the right ones, they’re likely to become part of our long-term growth.

We were thrilled when a new franchisee, R.K. Sidhu, signed on to develop 10 cafés in Orange County, Calif., last March. Later that fall, he signed a second development agreement to open 10 more locations in San Diego. Not only had we recruited the right franchisee to expand our footprint to the West Coast, but also we had found a true partner to help us establish a presence and position us for further growth in a key state.

When franchisors sign a new franchisee, they’re instilling a lot of trust in that person and putting their brand’s reputation on the line. You need the right franchisee, not just any franchisee. Here are some best practices that big brands and emerging concepts have used to successfully find their perfect partner to help grow their concepts long term, not just help to hit today’s development goals.

Look Beyond the Resume

It’s important when considering a franchisee to keep an open mind and look beyond their track record of running a successful business in your industry. While this is incredibly important, passion for your brand is equally essential.

Orangetheory Fitness found that in franchisee Brendon Ayanbadejo, a former linebacker and Super Bowl champion with the Baltimore Ravens. Ayanbadejo had taken a few Orangetheory classes and quickly found a new passion to pursue post-NFL. He retired in 2013, finished his MBA and is now an area developer for Orangetheory Fitness and operates seven locations across three counties in California.

Market to Your Consumers

When we announced last fall that we were looking for potential franchise candidates for Tin Drum Asiacafé, a customer and avid fan of the brand — Lavina Garishani — came to us about opening a single unit in Marietta, Ga., ultimately with the desire to develop the entire Atlanta market. While she didn’t have any previous restaurant experience, her experience in retail/service and love of Tin Drum, and her commitment to our long-term growth, made her a strong candidate.

Recruit Local “Experts”

Even well-established brands face the challenge of aligning with the right franchise partner. Take Dunkin’ Donuts, for example, a concept with 95 percent brand recognition and a leader in coffee. Three years ago, Dunkin’ Donuts announced it had opened California for development and, almost immediately,

The Frontier Restaurant Group was on board, committing to develop more than 25 new restaurants in California. After a thorough vetting process, Dunkin’s development team concluded that Frontier, with its collective 125 years of commercial real estate experience and retail development, could navigate the complexities of Southern California and help the brand grow on its way to reaching its long-term goal of having 1,000 restaurants throughout the state.

Additionally, Frontier chose to build its first restaurant using Dunkin’s energy-efficient, sustainable design, which allowed for guests and other potential franchisees experience the future of the brand.

Stick to Your Values

When in doubt, make sure a potential franchisee aligns with your vision and mission. Because when times get tough, they’ll come out strong. The Dwyer Group Inc., which has 11 service-based franchise concepts, understands that the larger a franchise grows, the harder it is to execute a consistent brand message.

When recruiting new franchisees, Dwyer Group seeks passionate candidates who align with its code of values, which serves as a set of universal guidelines by which its employees and franchisees strive to adhere. 

In 2008, Ray and Tina Bramble owned their own HVAC business that was hit hard by the downturn of the economy. Determined to keep their business, they decided to convert it into the Aire Serv business model. It was the Brambles’ passion for the industry — and unwillingness to give up — that made them an ideal franchise candidate for Dwyer Group. Six years later, they continue to dominate the market in Bull Run, Va., and are one of Aire Serv’s top franchisees.

At Tropical Smoothie Café, we also look for franchisees that embody our mission to inspire a healthier lifestyle by serving amazing smoothies with a bit of tropical fun. We recruit franchisees that play to win — and they do. In 2014, the top 50 percent of our franchisees had average gross sales in excess of $734,000 and our same-store sales continue to eclipse 11 percent, well above the norm in the fast casual industry.

Mike Rotondo is CEO of Tropical Smoothie Café and Tin Drum Asiacafé, as well as an operating partner at the BIP Franchise Accelerator, a division of BIP Capital. Find him at fransocial.franchise.org.

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