What Makes a Franchisee Successful?
by Ed Teixeira
In a previous article I presented what, in my opinion, makes an effective
franchise leader. This article looks at the other side of the relationship
between a franchisor and franchisee, namely, what makes a successful franchisee.
Of the countless articles and information available on franchising, I would
suggest that the majority of content is directed to how to find and evaluate a
franchise opportunity. I havenít seen a great deal of information that addresses
what makes a franchisee successful.
For this reason, I felt it appropriate to offer my assessment on what I feel
are the factors that make a franchisee successful.
1. Start with the Right Franchise: As a franchisee you canít
expect to be successful if you donít start out with the best franchise for you.
This means that the franchise you decide on fits your financial and skills
profile. If these areas are out of balance then the opportunity to be a
successful franchisee will be at risk. This should include a careful evaluation
of the franchisor.
2. Be a Sponge: Learn all you can at training and leave no
stone unturned. Follow up after training with any questions that you need
answered. Seek out a successful existing franchisee to gain insight. Many
franchisees are willing to provide assistance and answer questions. Most
importantly, be sure that you have all of your questions answered before you
open up your new franchise. Once youíve begun operations donít stop seeking
answers to your questions.
3. Build the Right Team: Unless the franchise is a one person
operation you need to have the right team to help operate the business. As a
franchisee you canít expect to operate the franchise every hour of the day.
Having a competent team will provide the people and the support youíll need to
be successful. Manage and lead your team effectively and if you need management
assistance then get it.
4. Follow the Program: In all my years in the franchise
industry I canít recall one franchisee that didnít follow the franchise and was
still successful. To the contrary, my most successful franchisees would always
attribute their success to following the franchise program. Obviously, the
franchise program must be sound and not flawed.
5. Remain in Control: In all cases the successful franchisee
remains in control of his or her destiny. If for some reason there is an
operational problem with your franchise you will need to take the necessary
steps to correct any major problems, including reaching out to the franchisor
for assistance. If the franchise has flaws that seem difficult to overcome, even
after youíve followed the franchise program, than consult a franchise attorney
and establish a plan for getting out. If itís happening to you then chances are
youíre not the only franchisee having problems.
6. Control your Growth: Itís important to avoid taking on
another franchise or adding more territory until the existing franchise is
running smoothly and is consistently profitable. Donít decide after six months
performance to add another franchise. Operating one franchise enables a
franchisee to devote their full attention, capital and resources to that
franchise. Taking on the added responsibility of another franchise may detract
from your ability to be successful and put you at risk of losing your
Operating a successful franchise requires that certain steps be followed.
This begins with selecting the right franchise that matches your financial
resources and personal and business profile. If after performing due diligence
you acquire the franchise than follow the key points Iíve presented to enhance
your probability for success.
© 2011 FranchiseKnowHow, LLC
is the author of The Franchise Buyers Manual and the President of FranchiseKnowHow, LLC. He can be reached at