Franchises operate in many different industries, offering a variety of products and/or services. While there are many differences in franchises, there is a certain glue that holds them together; a set of common features that make a franchise a franchise.
These include the proven business concept, training and support as well as giving the franchisee the right to operate under the brand. Despite the fact that franchisors spend a considerable amount of effort and resources into recruiting the right franchisees into their system, not everyone is considered a perfect match.
That’s because franchisors look for specific qualities in franchisees to ensure the right fit. So, what are the qualities of a good franchisee? We explore this aspect in more detail below.
What do franchisors look for in a franchisee?
Franchisors may attend expos and tradeshows, acquire prospective franchise leads through their websites and other channels to draw in prospective business partners. However, there is a process of vetting prospects as franchisors want to secure the right match for their franchise. With this in mind, below are some of the qualities and characteristics that franchisors may look for in a franchisee.
Financial capability
A prospective franchisee should be aware that franchisors require an upfront initial investment as well as other contributions, such as ongoing royalty payments. Then there are the operational capital requirements, which you’ll need to get your business off the ground. You should also have sufficient funds to carry you through until the business starts turning a profit. As such your financial capacity will be evaluated by the franchisor to see if you can carry yourself financially while the business takes off. After all, a franchise is an investment.
An interest in finance and business issues
You should also demonstrate that you have entrepreneurial traits by indicating that you have an interest in and understanding of finance and business issues. This will help ensure that you can run your franchise professionally from day one while keeping tabs on its financial performance. Being motivated, driven by results and being someone who chases growth are other qualities franchisors consider.
Leadership skills
As a franchisee, you will take on a leadership role that you need to be comfortable with. You will manage your team of employees as well as relationships with partners and vendors. You will also be required to offer an outstanding customer service, which means management skills will come in quite useful as well. For this reason, you need effective communication and people skills and to be a team player that interacts well with both the franchisor and your team.
Attitude
Your excitement and passion for the products and/or services you will be offering as a franchisee should shine through every step of your application process. You need to show that you’re committed to helping the brand achieve its goals and that you are glad to be a part of the team you’ll be joining. After all, a franchise relationship is often a long-term commitment and you need to be able to stick it out to the end with the right attitude.
Trustworthy
You should also be an honest and trustworthy individual. For example, you may be called upon to provide information to your franchisors. This information needs to be accurate. In addition, you need to be responsible and reliable as a person so that the franchisor can lean on you when anything new needs to be implemented.
A realistic understanding of the franchise relationship
Many prospective franchisees operate under the mistaken belief that once they buy into a franchise, they don’t have to work any longer. The opposite is actually true. In fact, running a franchise is like running any other type of business and requires hard work and determination. It also requires having a realistic understanding of the franchise relationship, both in terms of rights, obligations and responsibilities of each party.
Follow directions and the franchise system
Because the franchise model has been tried, tested and proven by the franchisor, your role will be to follow the directions and the operational requirements of the franchise system. Although it may be tempting to do things your own way, you need to remember that this can significantly affect the brand in a negative way. That’s why all aspects of the business, including marketing, sales, customer service and more should be followed and abided by according to the franchisor’s requirements and expectations.
What quality is usually most important for franchisors when selecting franchisees?
When it comes to the franchise discovery day where a franchisor and a prospective franchisee meet, the franchisor will thoroughly vet the prospect to ensure they are the right fit. However, one of the most important initial criteria for embarking on the franchisor-franchisee journey together is the need for sufficient capital and a solid understanding of financial concepts.
How to stand out from the competition
In order to stand out from other prospective franchisees that may be competing for the same opportunity as you, there are several things you can do to ensure you emerge victorious. Here are a few suggestions to consider:
- Thoroughly prepare and do your homework before meeting with the franchisor.
- Show the franchisor that you have solid emotional support backing you up.
- Prove that you can work independently while working efficiently.
- Have a stunning visual presentation and convey the image of a well-organised person.
- Demonstrate your passion and enthusiasm for the brand.
Conclusion
When it comes to standing out from the competition in pursuing your franchise opportunity, you need to be as well prepared as possible. You also need to demonstrate some of the key qualities mentioned above. While they are not all compulsory for every franchise system, they are some of the most common ones that franchisors are looking for.
And if you are interested in pursuing a property franchise business, having these skills and qualities will be quite helpful in your endeavours. For those of you considering a property franchise opportunity, we at the Belvoir Group are an industry leader in creating profitable and lucrative business opportunities in the sector. Get in touch with us today to discover more about how you can run your own estate agency franchise with confidence and all the support you need to create a successful business.
