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What Makes a Franchisee Successful?

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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 investment.

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

Ed Teixeira is the author of The Franchise Buyers Manual and the President of FranchiseKnowHow, LLC. He can be reached at franchiseknowhow@gmail.com

 

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