Top 5 Components Of A Model Franchisee
If you are seriously entertaining the idea of buying a franchise, you need to understand the psychology that is behind a franchisor’s decision to award a franchise to the “right” person.
There are certain essential skills and personality characteristics that encompass a “model” franchisee which franchisors absolutely require, so before you go any further down the road to franchise ownership, you had better do a self-inventory and make absolute certain you have them.
Obviously, if you are considering a handyman or home improvement franchise and you’ve never used a hammer or a saw, this could be a serious problem. Or if you are looking at a certain business to business franchise, but you hate selling, you are all but guaranteeing misery. But those aren’t the kind of skills that I’m referring to here.
Regardless of which specific franchise you are considering, you need to possess and exhibit some basic, key skills that will fuel the overall potential for success of your franchise business. Franchisors have spent plenty of time and money researching what the profile of the ideal franchisee looks like.
Here are 5 mandatory traits:
Commitment to following a proven system. Franchise systems are in place because they work. It’s that simple. If you’re nickname is “Genius” because of your brilliant, super creative ideas that you come up with daily, then franchising is not for you. Go back and read the previous sentence again. It is imperative that you are passionate about the product or service and are completely committed to executing the company’s marketing plan. If not, consider starting your own business.
Superior People Skills. You need to enjoy working well with others as a team. If you don’t like interacting with others, you’ll become stressed, your employees and customers will sense it, and ultimately your business will suffer. Instead, display the positive behavior that you want your employees to model when dealing with your customers. A happy, positive, “customer is always right” attitude must prevail at all times by you, your managers, and the employees.
Tremendous Work Ethic. A must for any potential franchisee. If you don’t possess strong, disciplined work habits and have burning desire, you might as well work for someone else and punch a time clock. Any successful franchisee will tell you that they work until the job is done. They don’t quit when the whistle blows. They’ll do anything it takes to get the job done. Having true passion to work for yourself will tend bring out this work ethic automatically.
Well-Capitalized. Obviously, franchising costs can be significant. Franchisors will not move forward with candidates that are under capitalized. You’re facing an initial investment, the franchise fee, and ongoing royalties due to the franchisor. Most small to medium sized franchises require a franchise fee of $5,000 up to $30,000. Royalties are usually a percentage of the income that your business generates, which you in turn pay the franchisor, typically ranging from 3%-7%. Don’t let these costs scare you, though. In return, you are receiving the use of the “brand”, which is significant in that you’ll attract customers immediately. Many franchisors offer assistance with financing. Also, you’ll tap into the volume discounts on product purchases you’re entitled to as a result of being a franchisee.
Finally: research, research, research. And seek out assistance. It’s virtually impossible to conduct a thorough franchise search alone. A seasoned franchise consultant can arm you with the knowledge you need to make an educated decision on the business that is the closest fit to your specific requirements.
Franchising is a great business model if you have the necessary skills and mindset to follow a winning formula. If you truly possess the characteristics spelled out above, chances are you have a solid foundation to be a successful franchisee.
Meet the Author Cory Barber
Cory Barber has written 36 Articles on Small Business Delivered.
Cory Barber, President of The Franchising Authority, LLC, is a professional franchise consultant with twenty plus years of business experience in sales and marketing for major national wholesale and retail companies. He provides free, full service franchise consulting to aspiring business owners. www.thefranchisingauthority.com