5 FRANCHISEE TRAITS

5 TRAITS EVERY FRANCHISEE MUST HAVE

What makes a successful franchisee? Regardless of industry or offering, the traits that define success in business are universal.

Fitness or fast food, coffee or cars, franchising is a unique and all-encompassing sector, but many of the steps that will help you climb the mountain are not industry specific.

It all comes down to you. How much are you willing to put into your business, and how dedicated are you to making it work?

In every venture, you will face adversity. From trying customers to swelling competition, the list of challenges you are likely to encounter is almost as diverse and different as the sector itself.

So, what is the key to getting it right? • As a f ranchisee, you must play by the rules; after all, you are paying to be a part of an established system to do so. Don’t expect success to come thick and fast just because you pick a winning franchise. • It is critical that you understand your rights and responsibilities. Your franchisor will provide a wealth of resources and information relating to the operation, but the onus is on you to get it right. We sat down with Tim West, founder and CEO of fast-growing boxing and strength training franchise 12RND Fitness, as he revealed his five golden rules to becoming a successful franchisee.

Five golden rules 1. EXECUTION The ability to execute a plan is one of the most important traits any franchisee can embody. Every member of the network is tasked with maintaining a supreme level of service or offering, and it is pivotal that you can deliver on this promise. One poor performing outlet can bring the value of the entire brand down. You don’t want to be the one operator dragging the chain.

“As a franchisee, you are buying into a franchise system because you want to benefit from the collective learning of the group and scale of the network,” Tim says.

“The system, brand and strategies have been developed and refined over time to be repeatable and scalable.”

There is a constant temptation to adjust certain parameters in the model. For example, you might find a supplier with a lower cost, or have a friend who could do your fitout cheaper – but bargain hunter beware. Franchisors have established ties with certain suppliers, builders and service providers for a reason, because they do good work that is consistent in look, taste and quality with the rest of the network.

West believes that while an entrepreneurial spirit can see you constantly striving for business improvement, some things are better left untouched.

“Often, franchisees can be tempted to make changes to the framework and implementation of strategy, but some of the most successful franchisees are the ones that follow the game plan and stick to the recommended best practice.”

2. A COLLABORATIVE ATTITUDE Becoming an entrepreneur may seem like a solo endeavour, but in the franchise world it’s a different story. Franchising is a wholly collaborative venture; that’s why you often hear franchisees referred to as partners.

Your ability to work side by side with your franchisor will dictate how seamless the operation runs. Every franchisor will welcome feedback and advice, but compromise is an inevitable aspect of business.

Remember, you aren’t competing with your franchisor or other franchisees in the network. Your success is their success.

“The best franchisees understand that if the group is doing well, they will do well. Rather than competing against fellow franchisees, it’s more productive and mutually beneficial to actively collaborate within their network and especially with the franchisor,” Tim says.

“Ongoing communication both ways is vital to encourage collective growth and success.”

3. A DRIVE FOR EXCELLENCE Irrespective of industry, the most important trait that all franchisees should possess is a desire to achieve.

You must want to be successful, and you must be willing to put in the effort to do so. “Above all else, the constant pursuit of excellence is, and always will be, your greatest strength and strategy,” Tim explains.

“Whether you are looking to attract initial customers or retain existing customers, you just need to focus on doing what you do better than anyone else.

“The best barista will always have loyal customers regardless of price, location or fitout because their quality and service is consistently good. This is a mentality rather than a destination.”

4. FINANCIAL LITERACY “Knowing your numbers and understanding what they mean is critical for any franchisee. Franchisees, like all small business owners, need to understand their financials and how they relate to the performance of their business,” Tim says.

Taking the time to honestly and accurately assess your financial house is critical to your ongoing success. Ask yourself the hard questions, because any bank or financial lender will definitely do so. • Are you in debt? • Do you have a mortgage? • Are you spending too much? Remember, you must take into account your current standard of living and what it will cost to maintain it. We’ve all been guilty of underestimating our spending, but when it comes to a business opportunity, you can’t afford to get it wrong.

It’s also important to not only set a budget, but to stick to it. If you have really been brutally honest about your current finances, you should be able to develop an accurate and manageable budget. Get your head around the notions of cash flow and fee structures before you sink deep into the budget blues.

“If you don't think you have sufficient financial literacy, you should always ask your franchisor for help,” Tim explains.

5. SERVICE MENTALITY Once the doors are open and customers are flowing in, it’s time to turn on the charm. Consider your operation from the customer’s perspective. Would you enjoy shopping/training/eating here if you were in their shoes?

The ability to connect with customers and clients is an often-underrated trait that great small business owners have. Tim says the key to building those relationships is having a service-driven approach.

“The best franchisees have a strong service mentality. They invest the time to know their customers, create meaningful relationships and add value at every opportunity,” he says.

“A good start is to greet your customer by name, give them what they want before they have to ask, and farewell them by their name.”

FINAL THOUGHTS 1. Above all else, franchising is a relationship game. Whether it be connecting with your customers, your suppliers or your franchisor, communication is key. 2. Make sure you are open and honest with yourself and everyone involved in the business. Franchisees who are struggling are best advised to consult their franchisor for support. 3. Remember, your business is your responsibility, but that doesn’t mean you can’t ask for help. More often than not, a successful franchisee is someone who is willing to heed advice and work on the bigger picture. n

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