franchisee characteristics

Graham Bauer argues in the Franchising Magazine (May/June 2004) that while intending Franchisees should assess each system’s fee structure on its merit, royalty based systems are the road to franchise success. Royalty based systems generally involve higher start up costs however the royalty based franchise system usually has a more sophisticated business program and stronger support.

Notwithstanding, the new contemporary franchise systems involve royalty based Franchises with a moderate network expansion program focusing on up-scaling competent and effective Franchisees.

Emerging measures include own-brand, R & D and growth within the franchise system, as a more effective form of development and at the same time utilising young, smart, qualified specialists with experience to build the business.

The Franchisor has the understanding of the values and criteria upon which the brand has been built. The Franchisor knows-

• The drivers of profit and how to better train and manage;
• Franchisees are in the market for opportunities from good supported businesses;
• The better Prospective Franchisees are independent, wealthier and business orientated;
• Prospective Franchisees know what they want to achieve from their business and invest in the health of the brand and systems;
• Franchisees still need to strive to be the best at what they do with forward vision and strategic direction using innovation, brand building and differentiating from competitors;
• The Prospective Franchisee will have sufficient insight of the opportunity offered by the Franchise system and have the money or ready access to financial resources to acquire and operate the business;
• The Prospective Franchisee will have sufficient passion, vision and purpose to drive the Franchise business as a result of growing their own business even to the extent that due diligence is secondary to the desire of wanting to be a part of a dynamic and progressive team.

Essential characteristics are that the Franchisee is freely willing to

• Operate within the rules of the business;
• Follow strong leadership;
• Be fully involved in the Franchise system and measure yourself and be willing to stand on subjective benchmarks;
• Learn often, learn widely and learn well soas to avoid any deception that is so transparent to clients;
• Develop performance and goal strategies;
• Execute the strategies for and with the support of the whole team;
• Have an action plan and implement it every working day;
• Be bold and willing to take a risk on new ideas and measures to get excellent to exceptional results;
• Espouse confidence from accurate knowledge and forward design soas to deliver best of application, quality, value and satisfaction of customer needs and wants;
• Through strength of character and good communication, locate and service sales leads effectively within the territory, then tap the customers network to drive exceptional sales performance for personal and financial reward.

Your attitude, dynamic and untapped potential is what your success is built upon.