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What are the Attributes of Successful Franchisees

by Ed Teixeira

There are certain skills or traits that successful franchisees share. Franchisors should look for these traits when considering franchise candidates.

Although there are differences from franchise to franchise, when it comes to individual franchisees there are certain traits that successful franchisees have in common. Regardless of how many differences exist from one franchise to another, the successful franchisees share the same attributes.

These traits are listed below:

  • Have the Skills That Match the Needs of the Franchise

The franchisee has a solid understanding of the franchise business. These skills match the franchisee's business knowledge and experience to the needs of the franchise. Too often a franchise candidate believes that operating a franchise is easier than it actually is.

  • Brings Sufficient Investment Capital to the Franchise

In my experience I've observed that successful franchisees rarely have financial problems. They bring the right amount of working capital to the franchise and due to their success in operating the franchise get the business off to the right start.

  • The Successful Franchisee is Aware of Competition -

The successful franchisees has an understanding of the competitive environment they are operating in. They will call their franchisor representative or a member of senior management to make them aware of key market changes. Franchisees that aren't aware of competitor behavior, often find out after losing sales when it may be too late. An awareness of competition is an important trait that successful franchisees share.

  • The Franchisee Is Committed

One of the reasons certain franchisees fail is due to a lack of commitment to operating the franchise. Operating a successful franchise requires a major effort and dedication to the task at hand. Over the years I've observed that the most successful franchisees have a passion and dedication to making their franchise the best in the network.The successful franchisees are actively involved in their business. In addition, the successful franchisees tend to have well-trained, competent and motivated staff. My countless observations of successful franchisees reveal not only do they have a highly active role in their business but also that they have an excellent team of people who not only supported the franchisee but could staff future expansion.

  • The Successful Franchisee Maintains a Dialog with the Franchisor

The successful franchisees find a way to maintain a dialog with the franchisor in both good times and bad. I've experienced many situations when my most successful franchisees would make a point to stay in contact with us. This is why successful franchisees are the ones who get called by their peers during troubled times. The other franchisees know that successful franchisees are, by virtue of their results, aware of important events taking place in the network.

I've observed these attributes to be among the more prevalent when one reviews the performance of successful franchisees. It doesn't mean that a franchisee needs all of these traits to be successful, however most do.

 

 

2015 FranchiseKnowHow, LLC

Ed Teixeira is the President of FranchiseKnowHow.com and Chief Operating Officer, FranchiseGrade.com. He is a former franchise executive and franchisee. He can be contacted at 631-246-5782 or at  franchiseknowhow@gmail.com

 

 

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