29 Apr Five Characteristics of Successful Franchisees
As a franchisor, you have invested significant time, money and energy in franchising your business. Your success relies on your franchisees, so you need people who bring a range of talents with them to the table, and who consistently work hard. So how do you identify if someone has the potential to be a good franchisee? There are a number of key factors to consider and characteristics to look for. Check out the five characteristics of successful franchisees.
#1 Hard skills
In the franchise world, hard skills to look for in potential franchisees include previous business knowledge, experience and qualifications. It’s a plus if you have a potential franchisee who has had previous experience in your particular industry, but don’t discount transferable skills either, or a franchisee’s ability to quickly pick up new things.
#2 Soft skills
Soft skills include the ways in which an individual works with others. Possessing a clear communication style is central to successful business relationships. While you as the franchisor may have established excellent communication policies and procedures to be used within the business, if your franchisee is lacking in interpersonal skills, you will most likely run into problems. Determining a candidate’s soft skills also means investigating their leadership style, and their general organisational capacity.
Financial health is of course a key indicator of a potential franchisee’s ability to engage in the signing up process. Not only is it important that the potential franchisee has the finances to initially commit to the business, it is worthwhile establishing if they have a contingency plan.
Being fully committed to the franchise means more than just wanting to buy in. You need to ascertain if the potential franchisee has a realistic understanding of your business and the industry you’re in, and their role as a franchisee.
#5 Institute good screening practices
The last thing you want is to have an inadequate process of identifying and screening potential franchisees. Ensuring that all potential franchisees are properly screened is crucial in making a clear decision. Ask for documents that relate to any qualifications, have a face-face-interview, and always check references personally.
Selecting good franchisees is an investment in your future. Understanding what makes a successful franchisee is as important as ensuring all other aspects of your business are set up correctly for franchising. For more information on franchising your business and choosing the right franchisees, contact one of our consultants.
Thanks for reading,
The Franchise Institute Team
1300 855 435