Top 10: What franchisors look for in a franchisee

26/06/2018 17:00 | Start a business

What franchisors look for in franchisees

If you've always dreamed of owning your own business, then you might want to consider investing in a franchise. Franchises offer the independence of small business ownership with the benefit of being backed up by an established business. You don't even need to have experience as a business owner to run a franchise. Franchisors will provide you with all the training and support you need to operate their franchise model.

But successful franchises are only possible if you find one thats right for you, your lifestyle and your ambitions. Both franchisor and franchisee need to feel that they've found the perfect fit. Every franchisor will be looking for different skills and traits from prospective franchisees, but there are ten qualities that most franchisors are looking for:

What franchisors are looking for

1. Willing to follow the system

One of the most significant advantages of buying into a franchise opportunity is that you dont have to re-invent the wheel. The franchise system has already been developed and improved by the franchisor over time and has proven to be successful. All you have to do is follow the system to see a healthy return on investment.

It can be tempting to want to put your stamp on your business when you become a franchisee, but this can be harmful to the franchise system rather than improve it. The overall franchise brand can be jeopardised if you dont follow the rules in terms of marketing, sales and service. Remember, the franchise system has been set up in a certain way for a reason. And that reason is that it works.

Successful franchises thrive on consistency and uniformity across their network, so it's essential that you're prepared to adhere to the rules. If you've got a strong entrepreneurial spirit, franchising may not be the right career move for you.

2. An understanding of what to expect

You buy into a franchise, and all the hard work has been done for you. You just sit back and wait for the money to roll in. Right? Unfortunately, there are many myths surrounding franchising, and this is probably the biggest one.

Just like any business, you must be prepared to be committed to making your franchise a success. In the early days, you may have to dedicate many hours to working in and on your franchise until its more established.

If you enter into a franchise agreement with a full understanding of your responsibilities, your expectations are more likely to be realistic. This will give you an advantage over other franchisees who may have unachievable goals and who are not willing to put in the required effort long enough to reap the rewards.

3. Financially prepared

Buying a franchise is called an investment for a reason. Most franchises require an initial franchise fee and ongoing royalties to be paid. Some franchisors also demand a contribution to a marketing fund too.

Before you even consider becoming a franchisee you need to be sure that you have the means to finance the necessary franchise investment. Its likely that youll also need working capital so that you can meet other financial obligations both personally and professionally until your franchise is making a profit.

4. Can adapt well

As a franchisee, you'll wear many different hats when running your business. One minute you might be recruiting new employees and the next youll be mopping the floors. The key to your success as a franchisee will be your ability to adapt to any situation.

For your franchise to run efficiently and profitably, you need to learn how to switch seamlessly from one mindset to another. This will help you to focus on each task as you're performing it while always ready to change hats as and when it's needed.

5. Ready to learn

The relationship between franchisor and franchisee can be compared to that of a teacher and student. For you to succeed as a franchisee, you need to be willing to learn from the franchisor to develop and grow. It's crucial you make the most of the training and support that the franchisor has to offer.

Independent business owners have to figure out everything for themselves, but you'll get the benefit of a comprehensive training package when you become a franchisee. Throughout your franchising journey gain as much experience as you can to allow you to become even more profitable and successful.

6. Good at networking

Youll also learn lots from other sources aside from the franchisor. Being able to network effectively with other business owners in your community is great for your personal development, as well as being good for your franchise.

You can also learn a considerable amount from other franchisees from within your network. Good franchisors encourage their franchisees to meet up to share stories, ideas and problems by arranging regular networking events. Ensure you make time to attend these so that you can learn from those more experienced than you.

7. Can be a leader as well as a manager

Successful franchisees tend to be successful leaders. A good leader is one who can influence their team, make effective decisions and, most importantly, has excellent communication skills. All of these qualities are necessary to motivate staff as well as ensuring that customers receive the best possible service.

8. Motivated and driven by results

Despite receiving training from your franchisor and support from other franchisees, ultimately your success as a franchisee is down to you. You must possess a drive to achieve measurable goals and become the most successful franchisee that you can be.

9. Happy to ask for help

Franchisor and franchisee have a common goal: to run a profitable business. If you're ever struggling or need help, then don't let your pride get in the way of asking for additional support. It's in the franchisor's best interests to make sure that you have all the help you need to overcome any challenges that you're facing.

10. Plenty of passion and enthusiasm

Even if you possess the previous nine qualities that are essential for a franchisee to hold if you dont have passion the journey to success will be much more difficult. Having enthusiasm for your brand will be infectious and very evident to your employees and customers. Love what you do, and you'll never work a day in your life.

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