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Franchisee Profile Who should and should not buy a franchise

Written by: Nick Strong

Article Overview: Are you entrepreneurial? If so think twice about buying a franchise. So who should buy a franchise and what are the benefits for the right type of people?

Franchisee Profile Who should and should not buy a franchise

Franchisee Profile – Who should and should not buy a franchise

Being self employed can bring many benefits but there are risks too. Statistically most new business start ups fail. By contrast most people that are new to business that start trading via the franchise route succeed. The British Franchise Association/NatWest national franchise survey reveals that over 90% of franchisees operate profitable businesses. Given that franchising is a safer way to go self employed, is it the route for all to take that are going into business for the first time?

Let me say this now and say it clearly, franchising is not for entrepreneurs. Why not? Because an entrepreneur is a person who is a maverick at heart. A risk taker and a rule breaker. Someone who does not see the boundaries. Because of this an entrepreneur is a person that works against the principles of franchising and can cause damage to the brand. So who is right for franchising?

Every successful franchisee has the following attributes. They are enthusiastic, hard working and most of all, they FOLLOW THE SYSTEM. A high performing franchisee will always be an enthusiastic disciple of the system he or she works under. This means that anyone that buys a franchise should be convinced in their minds that they do in fact completely believe in the system on offer. Franchisees do not have power to change a system. In fact a franchisee can loose their franchise by not following the system. Why is this?

It is quite reasonable for a franchisor to expect his franchisees to follow the system. Why? It is the system that makes the franchise valuable. It is the system that has been developed over time and that is proven. It is the system that the brand is built on. It is the proven system that customers expect. Imagine walking into a Dominos Pizza franchise store and finding that the franchisee had decided to serve curry that evening. By breaking the system the franchise brand and customer expectation is undermined. The brand and the system are king in franchising. By following them both well and enthusiastically the self employed business person can do well.

Entrepreneurs beware, franchising is not for you. Hard working and enthusiastic followers of proven systems are all welcomed in 90% of cases build profitable franchised business.

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Related Forum Posts
Protecting IP - Dear BigJim 22 Sure as long as it is in the Franchise agreement... ie wht you are offering as Francisor and what their obligations are as Franchisee It is all in the agreement........ take care Ian
Hello I am a franchise expert - Hello, I recruit franchise owners for successful franchise concepts based in the USA. Many of my franchises are looking to expand north to Canada in all major centers. I enjoy networking and answering questions about franchising. If anyone is interested in the franchise world or looking to buy a franchise then contact me. I have a wealth of information and like to help. Thanks for your time. Michael Somer
Re: Franchising Brokers vs Franchising Consultants - Franchise consultants are free and work with you without any obligation. they do not work for any one franchise but do get a percentage of the franchise fee when a franchisee that was registered with the franchise came from the consultant and the franchisee signs. They will try to match up your interests and skills to franchise businesses that are right for you. They can explain franchise guidelines and help you in any way they can. Franchise brokers usually get paid by the client and/ or franchise (generally get some type of commission). Additionally, they can get points or referral fee off the deal if they refer you to a lending resource too after they sell you on a franchise. Typcally they will try to sell a prospective franchisee on a larger deal so they get a larger commission.
Re: Which franchise would you buy? - The franchise to buy, the one that will succeed is the one that is either underrepresented or not represented in the community. Look at your community, identify what service is missing. That is the franchise to pursue. Too many people buy a franchise based on their "heart". A franchise is a "widget". I have found that once people began to investigate a franchise they had never thought of, but find their is a need; the entrepreneurial "gene" kicks in and they get excited. They began seeing the possibilities of success, and as they uncover the nuances of the franchise, they become more interested. It is the uninformed that are uninspired.
Re: The Storm Brace a new invention - Hi Breck, To add your signature, click on "User Control Panel" above, then click on "Profile" and then "Edit Signature". You can also add a photo via the "Edit Avatar" link in the Profile section. DH


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