The 20-60-20 Rule and AI: Make sure Candidates Align with your Franchise System

The 20-60-20 rule is a tried-and-true strategy that helps franchise recruiters determine where a candidate might fall on a performance spectrum. The rule encourages an individual to think about themselves and express their views honestly, revealing not only how they see themselves, but also how they might work in a franchise structure. 

The smart use of artificial intelligence (AI) can now strengthen this technique. AI tools help recruiters learn more, be more consistent, and be better prepared for important conversations than in the past. The 20-60-20 rule and AI work together to improve the thoroughness, objectivity, and perspective of the discovery process.

The 20-60-20 rule 

The rule divides individuals into three categories based on their performance: 

• Top 20%. Franchisees who routinely exceed expectations 
• Middle 60%. Reliable franchisees with space for growth—typically called the “Heart of the Network”
• Bottom 20%. Individuals who do not perform adequately or fulfill expectations 

While the bottom 20% isn’t typically a focus in candidate conversations, it’s important for recruiters to recognize signs of underperformance. At the same time, nearly every new franchisee will technically start at the bottom 20% simply because they are launching something new. With the right mindset and support, most will grow into the middle 60% and beyond as they follow their brand’s model.

Recruiters should introduce the 20-60-20 rule early in the discovery process to prompt candidates to reflect on how they naturally operate as leaders or business owners. The goal is to identify their mindset, self-discipline, and contribution to your brand rather than attempting to obtain a specific response. Be clear with the explanation of the 20-60-20 rule, emphasizing how it applies to franchisee performance and mindset. Make sure the candidate understands what sets each category apart. Then ask, “Where do you see yourself within the 20-60-20 framework?” 

Interpreting responses

It’s a positive sign if a candidate states they’re in the middle 60%. If you ask them more questions, you’ll learn more about their consistency and track record. For instance:

• “Tell me why you say that.”
• “Could you provide some examples or proof?”

Candidates should have a track record of meeting or exceeding goals, prior experience in similar roles or industries, and be willing to follow rules and procedures. It can be a good sign if a candidate claims to see themselves in the top 20%. But it is critical to determine what this means for them. Ask: 

• “What does ‘top 20%’ mean to you?” 
• “And how would I know you’re that person if I contacted your former manager or colleague?”

This helps to determine whether their vision of greatness aligns with the franchise system’s goals and values. 

The middle 60% is critical to the success of many franchise systems. Individuals who are consistent, willing to follow the model, open to coaching and personal development, and committed to long-term growth may not stand out at first. Recruiters should not pass over these candidates. Finding the “heart” of your network, those who will show up, follow through, and do what they say, is as important as identifying the top 20% performers. 

Using AI

AI can help the 20-60-20 framework work better. It should never be used in place of human reasoning, but it can assist the recruiter in making a more complete and equitable decision. 

Here are several methods to apply AI with the 20-60-20 rule:

• Digital tools can analyze candidate information, like applications, assessments, and video responses, to highlight patterns of consistency and alignment with the brand’s values. 
• AI-assisted summaries help recruiters capture key takeaways and identify language tendencies that, based on previous data, indicate top or middle performance.
• Scoring systems provide additional insights, particularly when it comes to identifying prospects in the middle 60% whom you might otherwise overlook.

Using the 20-60-20 rule framework alongside the right AI tools allows recruiters to bring more consistency to the discovery process, uncover deep insights, and ask the right questions at the right time. The 20-60-20 rule is more than simply a means to assess achievement; it helps to understand how a candidate thinks, how dependable they are, and how they might grow. When used correctly and in conjunction with AI, the rule leads to strong recruiting conversations and better alignment between candidates and franchise opportunities. 

Let’s go to work! 

Art Coley is CEO of CGI Franchise. Using the proven Recruitment Operating System (ROS), Art and the ROS team help franchise companies implement and execute a predictable, repeatable, and sustainable franchisee recruitment program. The company is based in Temple, Texas, and works with brands worldwide. Contact Art at 281-658-9409 or [email protected].

Quick Guide

When applying the 20-60-20 Rule with AI:

• Revisit the concept regularly to keep it top of mind
• Introduce it early in your candidate conversations
• Use it to guide authentic, reflective dialogue
• Take notes on how candidates respond to support future evaluations
• Incorporate AI tools that support rather than replace human judgment