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What makes a good franchisee?

Written by: Nick Strong

Article Overview: Considering franchising as a route to self employment? Not everyone is cut out to be a successful franchisee. Nick looks at what qualities make a good franchisee and what don't. Don't miss this essential franchise reading material if you are seriously considering buying into a franchise in the near future...

What makes a good franchisee?

When contemplating starting up in business on your own it is important that you choose a route that is suited to your skills and interests. You should also check that the market has some permanence and is not just a trend.

Alot of people looking at starting up in business as first timers are drawn to the idea franchise business as a route to self employment. Why is this and how do you decide if franchise business is a good option for you?

Below is an outline of who and who is not cut out to run a franchise business.

Business format franchise profile definition

The aspects below are normally present in a business format franchise system. It will be:-

• A proven business system
• Copyable
• Supported nationally and locally
• Ruled by a contract
• Owned and secured intellectual property, logos that give the system value

What makes a good franchisee?

The franchisor is the owner of the brand. The operator of the franchise in a local area is called the franchise owner or franchisee. Every thriving franchisee will usually have at the very least the following qualities in order for the franchise they are operating to suceed. They are:-

• To be able to follow and replicate the proven system
• Be passionate about the franchise system
• Passionate about serving their customers
• Good with people
• Have their family’s backing from the beginning
• Able to raise the required capital to purchase and run their chosen franchise business

Not an ideal franchisee

Everyone is different and franchising isn't the best choice for everyone. Consider carefully if franchising is really what you want to do if you:-

• Don't have the full support of your family
• Have insufficient capital to set up your chosen system
• Are not prepared to follow the ideas of others
• Find it difficult to arrange your time and priorities

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  Make the Most of the Franchisee/Franchisor Relationship

Article Tags: alot of people, best choice, business format, business system, family li, first timers, franchise business, franchise owner, franchise profile, franchise system, franchisee, franchisor, insufficient capital, li li, local area, permanence, profile definition, proven system, self employment, ul



Related Forum Posts
Dispute between Supplier and franchisee - This very much depends on the attitude of the franchiser. A good franchiser would be more than a little concerned about a franchisee not paying the bills purely from the perspective that it might tarnish the brand name. However, be aware that this might be struggling franchisee with a company that couldn't give two hoots about you being owed money. Personally I would be inclined to approach the person first and inform him or her of your intentions to talk to the franchiser before you actually do. This at least gives the franchisee the chance to rectify the situation.
Dispute between Supplier and franchisee - The franchisee is a totally legally separate entity from the franchiser, and frankly it is no business of the franchiser. And the most important reason you are also likely to totally alienate the franchisee. I don’t know enough about your relationship with franchisee to comment on the rights and wrongs: but I do know this - If there was even an ounce of "right" on my side in the non payment, and certainly if my problem was the franchise model was not working, I would make it my mission to delay payment all the way to the courtroom door anyone who was so sneaky as to go behind my back to the franchiser.
Each Franchise is different! - No two franchises are alike. Build the fee structure that makes most sense for all parties involved, franchisor, franchisee, and vendors. Yes vendors, some franchises take the the % that vendors (for example coke and pepsi) give them and contribute those to the advertising fund. Many franchises don't manage the advertising fund by themselves but seek franchisees to have a say in how the money is spent, some times thru regional franchisee groups. Speak to a few of the franchise development companies (franchise mills) be careful for the fill in the blank, one size fits all franchise development companies, those companies seldom produce successful franchise systems.
Franchise Territories - [quote="franchisebrief.com":1dfdbmhp]This information will be included in the UFOC. If the UFOC states that there is no protected territory, then I would be suspicious. If UFOC states that each franchisee will have its own territory, then there should not be any problem.[/quote:1dfdbmhp] Any franchises that I'm familiar with have a territory or distance provision that prevents franchisees from overlapping their territories. This is only a problem when you have an underproducing franchisee - but they should also have a provision to give a franchisee a set amount of time to make a go of the location and territrory. Shri
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.


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