Consider the moves at Popeyes, the fast-food chain operated by AFC Enterprises Inc. In late 2007, Popeyes began to feel “a mushiness in the market,” triggered by the housing crisis, recalls Vice President of Development Greg Vojnovic.
Candidates with stronger business acumen could better handle a bad economy, the company figured—so it mandated that all potential franchisees, or their business partners, must already own a restaurant.
“We’re looking for those that have experience…sweating about payroll and paying taxes every month,” Mr. Vojnovic says. As part of the evaluation process, Popeyes visits the existing establishment to evaluate its cleanliness, operations, culture and financial statements.