We speak with a lot of potential Franchisees. Some are clearly ideal candidates to join a franchise system, but others are not, yet have skills that are better placed in other areas. Being a Franchisee is not the same as being an employee, nor is it the same as being an entrepreneur. It could be argued the role lies somewhere in the middle of these two extremes, which might explain its rising popularity.
Are you fit for franchising? Six Killer Questions to ask yourself before considering becoming a franchisee:
1. Can I follow the system?
It’s great that you have lots of ideas of your own about running a business, but as a franchisee you will be expected to follow a system that has been tried and tested. A good franchisor encourages new ideas from franchisees (that is after all how the Big Mac was developed), but they should be channeled towards the franchisor to trial and test before implementing to the network. If you can’t follow the system and would rather be a free-spirited entrepreneur, then perhaps franchising is not for you.
2. Can I sell?
Regardless of what anyone tells you, you need to be able to sell to be in any sort of franchise. You will have to sell yourself and your business: to the franchisor, to your bank manager and of course to your customers. If you do not have any experience of sales then there will be proven systems in place to train you in all aspects of this, but if the idea of selling scares you, then perhaps franchising is not for you.
3. Am I buying a job?
Becoming a franchisee is just like starting a new business but with more support and greater security than going it alone. You join an established or growing brand, use proven systems, receive training and support, and get the benefit of being part of a network of other business owners in the same boat, with the same objective. However, it is still a risk and you need to also do a lot of work to get the business off the ground. During this time you will need to be able to financially support yourself and the growth of your business. If you follow the system then success is much more likely that starting your own business, but if you are looking for an instantaneous, secure and steady income, then perhaps franchising is not for you.
4. Can I motivate myself?
As a franchisee you are your own boss, which means you need to be self-motivated on a daily basis to drive your business forward with energy and enthusiasm, and some days that can be tough. However, what’s great about being part of a Franchise network is that you are actually part of a bigger team of like-minded business owners with the same objective – success! A good franchise system offers regular meetings between franchisees and the franchisor to exchange experiences and drive the entire business forward. If you are a self-starter, and can motivate yourself and your employees but still enjoy being part of a bigger team, then you just might be fit for franchising!
5. Can I commit?
You will need to commit financially to a franchise, not just the initial franchise fee but most likely regular management service fees in exchange for access to the system and ongoing support. You will also need to commit yourself to a minimum contract period with the franchisor. You will be entering a business relationship that is designed to be mutually beneficial. If you have finances in place or the ability to raise funds, and are mentally prepared to enter a contractual relationship, then you just might be fit for franchising!
6. Do I have passion?
As a new business owner you should be passionate and enthusiastic about your business and your products & services. If you are it will really show, and your customers and employees will share your zeal! Select a franchise system in an industry that you are really interested in and excited about. This isn’t a boring 9-5 job anymore – you should enjoy it! If you can identify with a franchise system and their brand, products & services, then you just might be fit for franchising!
So, are you fit for franchising?
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