OutMatch Assessments Identify Entrepreneurs Who Are Most Likely to Succeed as Franchise Owners
As a top-rated franchise organization with locations worldwide, this industry leader knows that selecting the right franchisees to grow the business is critical to their success.
Company Quick Facts
- Industry: Retail
- Number of franchises: 60,000+
- Number of countries: 18
- Solution: OutMatch Assessments
ROI Summary: Store Sales
Average Monthly Sales:
- Poor Matches: $126,400
- Strong Matches: $132,800
Strong franchise owners sell $6,400 more each month
Problem: Tedious Process for Franchisee Selection
With 11,000 franchises in North America, and more than 60,000 worldwide, this company has the financial strength, stability, and brand power to attract franchise prospects and independent business owners alike. The company has an aggressive growth strategy—with plans to grow by another 10,000 stores in the next 12 years—but the long, complicated business proposal process they were using to select new franchisees was not feasible for rapid franchise growth.
Solution: Assessments Identify Top Franchise Candidates
The company needed a better way to select franchisees for their business. They partnered with OutMatch to identify franchise candidates who were most likely to succeed and most likely to support the company’s key initiatives, like fresh food sales and multi-unit acquisitions.
OutMatch created a tailored assessment to target franchise candidates with the highest potential for success, and the company began using it to separate strong matches from poor matches in their applicant pool.
Result: $77K More per Store
In the first year, the company granted franchises to 324 new franchisees: 262 were strong matches (recommended by the assessment), and 63 were poor matches (not recommended by the assessment). After a year, it was clear that strong matches were driving consistently higher sales. Stores owned by strong matches sold $6,400 more per month than stores owned by poor matches—that’s a difference of $76,800 in annual sales, and a huge boost in profitability.
Based on these results, the company believes that if they had selected strong franchisees in place of poor franchisees, they would have driven an additional $4.8M in sales that year.
Using assessments to select the right franchisees, the company boosted sales at over 250 locations, and they now have an efficient and reliable process that will support their aggressive growth strategy.