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What makes a good franchisee?
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Franchising is inherently less risky than starting an independent business from scratch, owing to the built-in assistance and a proven, tested business model. There are various organisations, such as Franchise Local, that can help you in your search for a franchise opportunity. However, franchising is not for everyone and there are varying degrees of success and profitability associated with operating a franchise.
Mentioned below are some of the top qualities associated with highly successful franchises. New business owners can use this as a starting point to strategise their operations and turn their franchise unit into a successful venture.
Traits of a good franchisee
1. Accessible location
For businesses involved in public services like retail strips and restaurants, a visible serviceable location is particularly important in keeping customers engaged with the brand. Even for mobile franchises that do not require customers to come in, a suitable location with visible signage act as a marketing tool and keep customers interested in the brand.
2. Leadership skillsWhen selecting franchisees, a franchisor often looks for people with good behavioural skills and practical experience. A good leader is influential, can take tough decisions, delegate work, and display effective communication skills. Business owners who can motivate and lead staff to accomplish goals will be able to provide top-notch customer service too.
3. Excellent team spiritUnlike a sole proprietorship, franchising is not an independent business. Franchising agreements will require the franchisee to agree to a specific set of business practices established by the franchisor. A business owner who can “play by the rules” and inspire his/her team to do the same will often see better results overall.
4. HardworkingA franchisee with an ardent desire to improve their skills by working hard and smart and maintaining a strong work ethic will have a competitive edge in the market. As a business owner, you will need to spend a considerable amount of time continuously studying various business practices and researching the initiatives required to be a successful franchise.
5. Displays good judgementA franchise is only as successful as the decisions taken by the business owners. In franchising, the brand owner often provides the guidance required to take a business to new heights of success. But the final decision about what to do with the information rests in the hands of the franchisee. Successful franchises are result-oriented and will set up measurable goals to track their progress periodically.
6. Shows financial awarenessIn a franchising agreement, the franchisee is responsible for arranging the finances required to set up the unit and get it running. They also need to have some cash liquidity to continue operations before the franchise turns profits. Good financial acumen is necessary to navigate such a huge sum; you will need to be vigilant about the income and expenses as the company progresses.
7. A close network of contactsNetworking is a crucial part of franchising, as it helps franchisors source for potential franchisees and vice versa. Franchisees that have access to influential people within their network or industry will be able to make a connection with franchisors and provide invaluable insight to support the franchisor
Apart from the top traits mentioned above, a franchisee must also be willing to ask for help from the franchisor, staff, or family and friends when facing an obstacle. Willingness to ask for help and delegate work where necessary is part of a healthy franchise venture that will be successful in the long run.
