John and Bill Fotiadis, the founders of franchise fast-food chain Souvlaki Hut, have taken a novel approach to franchising, but their franchisees couldn’t be happier. They explain why they are pushing ahead with expansion despite the downturn.
The downturn is a frightening time for franchisees and particularly prospective franchisees. Logic says that franchisors need to be reassuring, compassionate and understanding.
But John and Bill Fotiadis, founders of franchise fast-food chain Souvlaki Hut, are taking a very different approach with their franchisee candidates.
“We like to scare them,†Bill says.
“We really push them in the interview process. We ask them: ‘What if you lose your money?’ and ‘What if you lose your house?’â€
The pair say the approach has probably slowed the growth of their business – in 2006, they knocked back 28 candidates after the interview products.
“For us it was the equivalent of $1 million worth of franchise fees, but we need the right people,†Bill says. Read full story.