Franchising 101: Top 5 Qualities of a Franchisee
If you’re thinking of venturing into the franchise world, you may be wondering what kind of person it takes to run a successful franchise. The personal qualities that make a successful businessperson in any area apply to franchisees too, but we’ve distinguished the particular qualities that really make a good franchise owner.
To succeed in any field of work, it pays to be hardworking, self-motivated and engaged. However, to become a franchisee a certain set of skills are required to make sure you’re able to succeed and build a long, successful career. Have a look at our top 5 qualities of a franchisee if your considering whether franchising is for you!
1. System orientated
The beauty of running a franchise is that you are working from a tried and tested business model. Successful franchisees are able to work well with a proven system and are able to focus on growing their operations, without having to work out the best way to run the franchise business.
Through working well with a system of operation that tells them the best way to do anything associated with the business, franchisees can follow a proven plan and be almost guaranteed success.
Joel Libava, franchise expert and author of books such as ‘Become a Franchise Owner!’ said that, although there’s nothing wrong with these personality traits, ‘people who are stubborn or independent-minded [as well as] people who think they will be able to change the system from within ’should not buy into franchising.
If following the rules and regulations of a franchise structure doesn’t sound like your cup of tea, it’s worth considering whether it’s the choice for you. If you breach the franchise agreement and don’t rectify whatever you’ve done wrong within a set period (usually 30 days), the franchisor has the right to terminate the contract.
Obviously, this can have a negative impact on everything from your reputation to your finances, and even your personal wellbeing. So, make sure you know your obligations when you first sign the franchise agreement by consulting a franchise professional or solicitor.
An independent person who doesn't like following rules may not be the best candidate for franchising, which involves following an established system that has been proven to work.
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2. Entrepreneurial spirit
When running any business, it pays to have a bit of entrepreneurial spirit. To find success you’ll need a strong desire to improve your business skills and a real ambition to see your franchise business grow.
Luckily, with a franchise, all the nuts and bolts of your business have already been securely fitted into place by the franchisor. But remember, you’ll still be responsible for operating your franchise unit. So, it’s vital you have the core characteristics of a successful entrepreneur, which include business acumen, financial awareness, determination and leadership skills.
Self-assessment is another vital aspect of business, and as a franchisee you need to remember why you're getting into a franchise business to begin with. You want to avoid mistakes - that's why you bought into an existing system, and why you are here to learn business skills from those who are here to teach them.
When setting up a franchise unit, the biggest question on your lips is probably when you’re likely to start making money. Unlike independent businesses, franchises can look at other units in the network and get a pretty good estimate of when a new one will break even.
However, it’s important to remember that every franchise is different, and many different factors will influence your journey to profitability. For this reason, patience is a valuable virtue in the franchising world.
When you make the franchising leap, you are committing to the power of a brand. If you follow the franchisor’s system correctly, show patience, commitment and recruit well, there’s every chance you’ll enjoy the many benefits and profits that come with being a franchisee.
Patience also comes into everyday practice through the interactions you’ll have with those above and below you on the franchise chain, not to mention customers.
4. Willing to learn
Another quality of a good franchisee is how willing to learn they are. Being open to change and feedback is essential when running a franchise. The most successful franchisees are willing to learn from others to avoid making mistakes, so they can reach the most efficient and profitable way of operating quickly.
When you become a franchisee, you’re in business for yourself, not by yourself. The whole point of running a franchise is that you have the freedom of being a business owner combined with the support of an experienced franchisor.
The founder/managing director of the business will want to make sure their franchisees are in the best possible position to maintain profitability. This means they’ll usually provide all franchisees with a good amount of training and support, and it pays to listen to all the advice you can get.
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5. People skills
All businesses have customers, and as a franchise owner you’ll likely have staff too. A successful franchisee believes that customers must be highly valued and believes in prompt responses to staff and clients.
The ability to network and to effectively grow and maintain customer and business relationships is also a big part of being a good franchisee. Good communication also helps forge loyalty and trust with staff and customers, which are important characteristics and need to be maintained in order for the franchise business to succeed.
People skills also come into play when hiring staff and choosing who you want to take on your franchising venture with you. Not everyone can make good decisions about who to hire as employees in their franchise.
Hiring decisions go back to people skills and seeing the big picture, as well as deciding which candidates you think are going to be excited about the brand the way you are.
You will be running your own business, which means you need good leadership skills. Ensuring everybody working under you is happy will ensure a successful business and make you a successful franchisee.
Ready to franchise?
So there you have it - the top qualities of a successful franchisee are the ability and orientation to like following a system, the entrepreneurial spirit to see success in any business venture, the patience to invest time and energy before reaping your return, the ability to absorb advice and training and the people skills to ensure the everyday of running your own business goes smoothly.
If these qualities sound like the kind of traits you can deliver and develop, you may have just what it takes to become a highly successful franchisee.
Have a look at our extensive list of franchise opportunities here on Point Franchise, and get in touch to start your journey to success today.
The Editorial Team, Point Franchise ©
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