VI. SELL FRANCHISES ONLY TO QUALIFIED CANDIDATES

Many franchisee related problems can be eliminated by awarding franchises only to qualified applicants. Prior to approving a prospect, the franchisor should consider whether the prospect: (1) has the requisite entrepreneurial skills; (2) appreciates the requirements of product and system uniformity; (3) is adequately financed; (4) has realistic expectations; (5) is able to make "real time" commitments to owning and operating the franchised business; and finally (6) is a person who you want as a long-term business partner.

Prospects who do not satisfy these criteria will usually be less successful, require more attention and are more likely to become quickly disillusioned. Your goal is to isolate the gene that motivates people to quit, be small minded, seek recission of the franchise agreement and assert fabricated claims to avoid their contractual obligations. Even if the franchisor has fully complied with all applicable laws and regulations, such allegations cost time and money to defend and may have to be disclosed in the UFOC.