FranChoice news, updates, and industry information
Do you envision yourself as a future franchisee? How can you know whether you have the right personality type to succeed? Many people believe only a true “Type A” entrepreneur should pursue franchise ownership. The truth is actually quite different.
The most successful franchisees have something important in common. They’re able and willing to follow a proven system in order to replicate the success of the business. While an “entrepreneur” seeks to express creativity and find their own niche, it’s actually a “Steady Eddie” — willing to follow direction and trust the system — who will strike gold as a franchisee.
In addition, a successful franchisee is comfortable wearing many different hats. How many of these roles would you be comfortable playing?
Focus on production ∙ Create benchmarks ∙ Evaluate results
Engaged Evaluators understand that action does not equal achievement. They measure progress and revere the value of benchmark measurements. When a particular course of action isn’t working, they are agile and able to adjust.
Imagine the future ∙ Recognize necessary tasks
Big-Picture Thinkers know that working long hours and completing tedious tasks are worthwhile for their long-term payoff. They find motivation for day-to-day activities by keeping their eyes on the prize!
Make business happen ∙ Care about success ∙ Recognize efforts
Proactive Players take the lead and bring in business. Sitting back and expecting customers to come to them is not in their nature.
Look forward ∙ Create solutions ∙ Stay positive ∙ Live for the future
Optimists see the glass as “half full.” When a problem arises, they jump on the opportunity to find a solution rather than ruminating on the problem itself.
Relate to clients ∙ Generate good morale ∙ Enjoy networking ∙ Have a voice in the community
A People Person recognizes the importance of positive and productive relationships with customers and employees. S/he enjoys interacting with others and seeks out connections that are mutually beneficial.
Open to learning ∙ Likes direction ∙ Wants a safety net
Seatbelt Enthusiasts seek out security in their everyday lives. They look to mitigate risks and see the value of following a system with a proven track record.
Trust in the future ∙ Maintain perspective
Setbacks excite Resilient Responders. They are easily able to maintain perspective and know that things will get better. They excel at bouncing back from adversity.
Cool and Collected
Rock steady ∙ Consistent ∙ Composed ∙ Addresses Issues
People who are Cool and Collected are alert to surrounding circumstances without panicking or causing a scene. They focus on essential and important tasks while giving customers and employees peace of mind.
While not everyone is suited to be a franchisee, it can be a fantastic route for the right person. In addition to financial backing and business experience, a successful franchisee possesses the ability and willingness to wear the 8 hats we’ve described. If you see yourself in these descriptions, you likely have the confidence, drive, and motivation to be a successful franchise owner.Read More
Most people equate franchising with well-known names: McDonald’s, 7-Eleven, Dunkin’ Donuts, Supercuts, the list goes on. These big franchise systems have advantages and disadvantages when it comes to the franchisee role. When exploring franchise opportunities, be sure to ponder these pros and cons.
Benefits of a big franchise system
When evaluating franchise opportunities, you’re looking for at least two things: a valuable brand and a proven operating system. The primary advantage of big franchise companies is that many are good on both of these fronts. And they are easier to research. You can check consumer awareness and attitudes about these brands just by asking around. And it’s relatively easy to visit a few locations and look at how well (or not) they operate.
These large franchise systems can offer another advantage to new franchisees: safety and dependability. The risk of getting into a big franchise system is relatively lower, because they worked all the bugs out of their systems long ago. This doesn’t mean they can guarantee your success. But because there’s a wealth of information available about the current system and its operators, you’ll have less uncertainty.
With big systems you’ll usually find a greater degree of professionalism and expertise among the support staff, the supply chain, and virtually every other system component, compared with what you can reasonably expect for a smaller or newer franchise. This can help you avoid mistakes and potentially realize lower operating costs compared to a less sophisticated system.
Drawbacks of a big franchise system
Mega franchise systems have disadvantages too. One potential disadvantage is that the larger a franchise system becomes, the more they may regulate the conduct of existing franchisees. A large franchise system usually documents exactly how the business should be run in every respect—from layout to operations to marketing. They’re not looking for innovators or someone who will reinvent the wheel. They’re looking for operators who will faithfully execute their proven systems.
Many very large systems already have so many units that it can be difficult to get approved to open a new unit as a new franchisee. These systems tend to favor successful current operators for expansion opportunities rather than take on new, unproven operators.
Buying an existing unit
New franchisees typically enter a large system by purchasing one or more existing units. This can be an advantage, as it enables you to review the performance of the unit(s) before you decide whether to pursue it. Buying an existing business with profitable operations enables you to avoid the losses typically associated with the initial startup process. As long as you make sure you’re getting a successful unit (rather than taking on someone else’s troubles), this can be a great opportunity.
It’s up to you
The really big franchise systems receive thousands of inquiries from prospective franchisees every month. You may need to communicate your qualifications more aggressively to get a big franchisor’s attention and consideration. Whatever the challenges are in this area, the prize may be well worth going through the process.
Every franchise is seeking franchisees with the talent and capital to make their business a success. Big or small, most franchise companies care deeply about the success of all their franchisees. You can find just as much heart in a big company as in a smaller one. Take the time to look into a number of alternatives when you’re contemplating franchise opportunities–big company or small–and you’ll find the right one to maximize your chance for success.Read More