How to Select Franchisees in Colombia

Having people interested in your business does not mean you have found those who can replicate it. Before offering a franchise in Colombia, establish a selection process that assesses capabilities, resources and expectations, rather than simply a willingness to pay. Choosing well protects operations and helps build sustainable relationships across your franchise network.

1. Define the profile around the demands of the business

Your franchisee profile should reflect the actual work involved in running an outlet. Review the decisions currently made by the person managing a unit: organising shifts, controlling stock, serving customers, selling, monitoring performance indicators or developing business relationships. Then identify which capabilities candidates must already have and which they can learn.

Divide the criteria into three groups:

• Essential: conditions without which the business cannot operate effectively, such as genuine availability where the model requires a daily presence.
• Trainable: knowledge that candidates can acquire through the planned training programme.
• Desirable: experience that helps performance, but whose absence alone does not justify rejection.

Do not automatically require business ownership experience. An experienced candidate may resist following procedures, while someone who has never owned a business may demonstrate discipline and an ability to learn. Assess behaviours relevant to the model, not personal rapport with the founder.

If you accept investors who will delegate day-to-day operations, establish from the outset how you will also assess their proposed manager. Do not treat this arrangement as equivalent to direct owner involvement.

2. Use a consistent interview and a practical assessment

Prepare the same core questions for all applicants. This makes it easier to compare answers and reduces decisions based on enthusiasm, likeability or sales skills.

Ask for specific examples: a time when the candidate brought costs back under control, resolved a disagreement with an employee or followed a procedure they initially disagreed with. Ask what they did, why and what the outcome was.

Supplement the interview with a hypothetical scenario, without disclosing confidential business information. For example, an outlet has stock discrepancies and receives a complaint during a busy trading day. Ask the applicant to explain their priorities and what information they would need before acting.

The assessment should test reasoning, not guesswork. Do not penalise candidates for being unfamiliar with procedures you have not yet taught them. Observe whether they identify risks, ask for information and distinguish between decisions they can make themselves and matters they should refer to the franchisor.

Record evidence against each criterion and decide in advance which answers will require clarification. A score without an explanation adds little to the decision.

3. Verify resources, time commitment and expectations

The ability to pay the initial franchise fee does not prove that a candidate can sustain the outlet. Request relevant information to assess the resources available against the investment and operating requirements of the model. Distinguish between candidates’ own funds, planned financing and funds that still depend on third parties.

Also confirm their time commitments. Ask what other activities they will continue, who will run the business and what will happen if the person in charge is absent. Where several partners are involved, identify who will make decisions and who will be the main operational contact.

Explore expectations through direct questions:

• What support do you expect from the franchisor?
• Which decisions do you understand to be your responsibility?
• How would you respond if results fell short of expectations?
• Are you willing to comply with standards without treating them as a guarantee of success?

Check professional or business references with the candidate’s knowledge and subject to any required authorisations. Ask for verifiable facts, not vague opinions about their personality. If you find inconsistencies, give the candidate an opportunity to clarify them before making a decision.

4. Apply Colombia’s legal framework during selection

In Colombia, a franchise agreement is an atypical contract: there is no specific law regulating it comprehensively. The general rules of the Commercial Code apply, alongside those of the Civil Code where relevant. Good faith must also guide pre-contractual discussions.

This means avoiding misleading promises during recruitment. Do not present a candidate’s approval as a guarantee of profitability or as immediate authorisation to start operating. Explain which checks are still outstanding and who has the authority to communicate acceptance.

Financial documents, references and information about individuals require attention to Law 1581 of 2012, on personal data protection, and its implementing regulations. Define the purposes for which data will be used, obtain authorisation where required, restrict access and establish retention criteria. Do not collect sensitive information or information unrelated to the assessment out of mere curiosity.

5. Decide on evidence, not sales pressure

Before accepting a candidate, compile a brief assessment record covering the criteria assessed, supporting evidence, questions resolved and outstanding conditions. Wherever possible, have someone other than the person seeking to close the sale review the decision.

Practical takeaway: before recruiting, prepare a profile, an interview and an assessment scenario. If you cannot explain, with evidence, why someone is suitable to operate your model, you should not yet commit your brand.