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.
â€œWe like to scare them,â€ Bill says.
“We really push them in the interview process. We ask them: â€˜What if you lose your money?â€™ and â€˜What if you lose your house?â€™â€
The pair say the approach has probably slowed the growth of their business â€“ in 2006, they knocked back 28 candidates after the interview products.
â€œFor us it was the equivalent of $1 million worth of franchise fees, but we need the right people,â€ Bill says. Read full story.