According to “the Times 100 “start up businesses have a very high failure rate in this country with as many as 1 in 3 failing in their first three years”.

That statistic is in sharp contrast with the British Franchise Association 2011 figure that “About 90% of all franchisees reported profitability over the last 12 months”.

On the surface this could mean that the current recession an ideal time to be in franchising and that just about any franchise should succeed.

The demand is clearly there; there are lots of people out there desparate for a job and there are certainly a few of them looking for a good way to spend their redundancy payments.

The reality is that, as many experienced franchisors will point out, good recruitment is still one of the biggest challenges facing any franchise.

The reason for this is what I call the “franchise dilemma”.

In simple terms, you have two apparently conflicting aims. You want to grow and therefore you need to attract lots of applicants for your franchise. Yet when your hard-earned prospect franchisees get to your office, you then need to reject many of them ruthlessly.

The risks of bad recruitment are clear; many franchisors have told us that recruiting the wrong franchisee incur costs that far outweigh any franchise fee. Managing the problem franchisee is costly in terms of time and money and is the fastest route to a failed franchise.

This is not to mention the poor failing franchisees who lose their money and their self-esteem (and will certainly tell everyone about that).

On the other hand, good recruitment brings rewards that all franchisors dream of: an increased franchise network; more reliable income and better brand recognition.

Therefore I read this guide to franchise recruitment from the Franchise Magazine with a great deal of interest.

I’d like to add my own view to this.

Sometimes in business, some things truly are fundamental to success while others are just details that affect your business in much smaller ways.

In my view, solving the Franchise Dilemma effectively is just about the most important thing a franchise can do.

In turn, good franchise recruitment largely rests on three things.

Firstly, careful and monitored use of advertising channels and recruitment money.

Second, a compelling, properly priced and truthful business proposition. If you have to embellish your proposition, one day, this will come back to haunt you.

Finally, a determination to recruit only those who meet your carefully prepared recruitment criteria. The best franchises also have a clear set of recruitment criteria that they stick to without compromise. They understand that the franchise fee is small-fry compared to the long-term advantages of a successful new franchisee.

There is even a virtuous circle to all of this; good recruitment breeds good news stories and even more effective recruitment.

Smart franchises have a logical and well-presented business proposition. Good franchisees will respond to a good proposition whereas only fools will buy a bad deal. The one thing that good franchisees and bad franchisees have in common is that they will talk about you.