As franchising continues to evolve as a way for companies to distribute and market their services, the demand for qualified franchisees increases. The ability of a system to maintain a competitive edge depends on the quality of its franchisees. This means that franchisors should have a well developed franchisee recruitment and selection process.

Many of the problems that are experienced in some franchise systems begin with how franchisees are recruited, selected, and brought into the system. Franchisors can’t just focus on closing the deal and increasing their number of operating units. They must find the right family members. With the wrong family members, some systems will never realize their true potential.

This means that the purpose of recruitment should be seen in a different light. In this view, recruiting is meant to create the future of the franchise system. This goes beyond a numbers game and turns into a consultation process between the franchisor and franchisee. Rather than convince someone to buy a franchise, franchisors should grant a franchise to the right candidates, and franchisees should make an informed business decision. The candidate should fit in with what the franchise system needs and should be able to contribute to the overall goals of the organization. Each franchisee should be valued for what he or she brings to the organization.

Each partner in this relationship needs different things to build a trusting, mutually beneficial relationship.

The franchisor needs franchisees who:
- Follow the system.
- Become profitable and grow.
- Adhere to their payment schedule.
- Maintain high standards.
- Participate in marketing campaigns.
- Can communicate with the support staff.
- Are enthusiastic about the brand.
- Offer excellent customer service.
- Get involved in their community.

When the franchisor is guaranteed to get this from their franchisees, they’re more likely to lead the system into a new realm of success. Instead of becoming too involved in franchisees’ affairs, they’ll be able to allocate their resources to other ventures.

Franchisees need franchisors to live up to their end of the agreement, too. Franchisees need franchisors that:
- Have a clear system and a superior product or service.
- Offer thorough preopening training and ongoing support.
- Can anticipate problems and find areas to innovate.
- Listen to their franchisees.
- Have a strong support staff.
- Recognize star performers.
- Reinvest in the brand.
- Have a long-term vision.
- Treat their franchisees fairly.

If all of these elements are in place, the franchisor-franchisee relationship can be one full of trust and with little conflict.

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