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So you want to buy a franchise?

So you want to buy a franchise?

So you want to buy a franchise?

What Franchisors look for in their Franchise Partners

Have ever dreamed of owning your own business? If so, chances are you’ve considered buying a franchise. The benefits of owning a franchised business are well known:

  • brand name recognition;
  • proven operating system;
  • service, support, and training from the franchisor.

As you evaluate different franchise options, it is important to understand how the franchisor delivers on each of these areas.

Just as importantly, as you review each franchise opportunity for compatibility, the franchisor will be evaluating you as well. Ultimately, this relationship will be a mutual decision.

Given this, what is a franchisor looking for in their franchise partners? While there are thousands of different franchise options, with varying investment levels and types of businesses, there are some consistent traits, characteristics, and qualifications they require of their partners.

They are looking for people who:

  • Demonstrate an ability to follow a system/process. The most successful franchisees execute the business model created by the franchisor. Therefore, the franchisor is going to ensure you are capable of following a system and may put you through a franchise investigation process that tests your ability to follow a system.
  • Exhibit strong organization skills. A candidate that is organized in their research and can demonstrate their ability to simultaneously manage multiple tasks is appealing to a franchisor.
  • Are deeply committed to the products or service. Franchisors want people who are passionate about their product or service as they are more likely to be successful.
  • Understand and show commitment to success. Owning a business is hard work and demands a lot of time. Franchisors are looking for someone who is ready to fully devote themselves to the success of their business.
  • Are realistic about the work required. Some people have the mistaken impression that owning a franchise is easier because the franchisor does all the work. This is not the case. The franchisor provides the framework, but it is the franchisee who executes the plan.
  • Exhibit strong marketing and sales skills. In many franchises, the primary role and responsibility of the franchisee is customer acquisition. Franchisors look for people with the knowledge and skills to make that happen.
  • Are financially qualified. Regardless of the investment level, there are minimum financial qualifications that a franchisee needs to achieve. These typically include liquid capital to invest, net worth, and credit score. The actual amount needed is determined by the franchisor.
  • Have industry experience. Some franchisors require a specific skill set or experience to become a franchisee. More often than not, however, no prior industry experience is required. The training provided by the franchisor is usually enough to educate the franchisee about the respective industry.

On a final note, before partnering with a franchisor, ensure you clearly understand the difference between an entrepreneur and a franchisee. An entrepreneur is generally someone that starts a business from scratch. They develop the concept, do the research, create the programs, processes and systems to operate the business, and deliver a product or service to a customer base. They are creative and are motivated by building something new. Entrepreneurs often times turn their business into a franchise and become a franchisor. A franchisee, on the other hand, is someone who chooses to take advantage of an entrepreneur’s vision and proven system, and operates a business using this system.

An honest self-evaluation is an important first step in determining whether you are ready to own your own business. By reviewing the above list of common traits of successful franchisees, you are on your way to achieving your dream of professional independence.

Jeff Sturgis is the Vice President, Franchise Sales and Development for Fantastic Sams Hair Salons. He can be reached at 978-232-5611 or jsturgis@fantasticsams.com.

 

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