5 minute read
The DNA of a Franchisee
Franchisee of a The DNA
by Angela Coté
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10 common traits of successful franchise owners
Are you trying to figure out whether franchise ownership makes sense for you? Having spent many years around countless franchise companies, it has become clear to me that regardless of the brand or concept, there are some com
mon traits of successful franchisees. I have seen many situations first-hand where the franchisee struggled and then failed because their DNA was more suited for a structured work environment. And on the other extreme, there were true entrepreneurs who would have been better off launching their own business so they could call all the shots. Here are my key indicators of a successful franchisee:
Financially Prepared Entrepreneurial
Often overlooked is the fact that, even though a franchise may be a proven concept and have a wellknown brand, it still takes time to build a loyal following of customers in a new market. Ensure your budget for not only the upfront investment but also the working capital you will need to get this business to a break-even point and to where you can take a salary..
Systems-Oriented
People who gravitate toward following systems and processes are naturally going to thrive more in a franchise than those who prefer to be creative and frequently try something new. Think about your past and consider whether you have been in situations where you had to follow a system and whether you were truly okay with it. As a business owner, it is your responsibility to grow your customer base. A franchisor will give you guidance and support on what typically works best, but you are ultimately responsible and may need to be creative about how you grow your business.
Brand Loyal and Passionate
If you don’t absolutely love the brand, it will make it hard for you to build and grow the business. You need to be excited about waking up every day and putting your primary attention on this business. Ask yourself what it is that excites you about the brand and reflect on whether the passion is likely to be sustainable.
Patient
Decisions and upgrades typically move much slower in a franchise system because they affect numerous other business operators who have invested their life savings into the brand. A franchisor needs to cover all the bases, including sometimes taking the time to assess franchisee buy-in prior to moving a decision forward.
A Natural Leader
Often missed is the importance of having the ability to inspire and lead a frontline team.
Think about what experiences you have had as a leader, whether that was coaching a kid’s sports team, volunteering on a parent advisory committee, managing a department in a corporate role, etc. Were you able to inspire others to buy in to what you were ‘selling’ in these situations?
Collaborative and Team-Focused
Just like on a sports team, franchisees often need to accept decisions that are for the greater good of the overall company. Consider your past experience as part of a team. Was it an environment that energized you? What was your role in sports, a sorority or fraternity, extracurricular activities or volunteer positions?
Community-Oriented
Franchisees who are comfortable connecting with their communities typically do a better job of maximizing the opportunity. Who do you know in your community that you may be able to leverage, such as other business owners, media people, politicians, etc.? Do you get excited about making and leveraging connections and building relationships?
GRIT!!!
At the end of the day, even in a franchise, a business owner will typically need to work long hours to get their business up and running, and then sometimes unexpected challenges arise that require you to really ‘dig in.’ This ties back to my myth-busting statement “Contrary to popular belief, franchising is not turn-key.”
Having to work hard is commonly overlooked because people think that the proven systems are going to mean everything just flows. Whether a franchise or an independent small business, there will always be challenging times that require a ‘dig-in’ approach. Franchisees who don’t have grit tend to be the lowest performers in a franchise system. If you are considering becoming a franchisee, now matter HOW appealing it seems on the surface, consider whether you possess the traits to make the business thrive. Keep in mind that this is not about being right or wrong, it’s about ensuring your success, sista! Sales-Driven This is a key trait! Contrary to popular belief, franchising is not turn-key, because turn-key implies the franchisee won’t have to take responsibility for growing their business. In most franchises, the franchisee plays a key part in generating sales and loyal customers for his or her business, which leads right into the next point.
Angela Coté, Franchise Growth Catalyst, works with franchisors to improve franchisee profitability and performance, and helps startup franchisors with where to focus their time, money and energy to achieve sustainable growth. Having grown up helping build her family business to almost 500 franchise locations, Angela has an extensive understanding of the roadmap to success. For more information, visit www.angelacote.com or reach out to angela@angelacote.com. Franchisees who don’t have grit tend to be the lowest performers in a franchise system. “
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