What do we look for in a franchisee? After we’ve received the prospect’s application, the first check is the veracity of information. Once that is done, we ensure that the franchisee has a positive attitude and is focused and motivated. Some of the other qualities are:
Reliability Good franchisees tend to be reliable. They are careful but not necessarily risk averse. They must work conscientiously.
Leadership and people skills Franchisees are bosses of their business. Thus, dealing with people, leading a team, communicating with others are must-have skills. They should not be worried if they don’t have industry-specific experience as the franchiser will share his knowledge and expertise and provide them with necessary training and support needed to make their franchises a success.
Good judgement Every business carries a risk. So does franchising. Therefore, a successful franchisee must have good judgement to assess whether a decision is worth the risk or not.
Fast learners There are aspects to the franchise that require continuous learning and training. Franchisees must be prepared to learn from other people to understand the ins and outs of the business. All good franchisees should be willing to take advice from franchisers.
Hard work All franchisees must be capable of hard work to make the franchise a success. Hard work is necessary to keep the franchise running well and to keep staff and customers happy.
Effective communication Excellent communication skills are a necessary element of a successful operation.
Good networking The ability to network and to manage customer and business relationships effectively is an important part of the role of franchisees. Loyalty and trust are important for managing both staff and customers. These must be cultivated and nurtured for sustained success of a franchise.
Financial awareness A good franchisee will have arranged for the necessary capital investments prior to the franchise agreement. After the franchise is set up, a franchisee must keep an eye on income and expenditure. Strict control over finances will ensure the success of the business.
Willingness to delegate work A good franchisee is aware of his staffing hierarchy and is willing to delegate work as appropriate. Delegating work will also help to take some pressure off the franchisee and enable him to concentrate on other important elements of the franchise business.
Willingness to ask for help The willingness to ask for help—from franchiser, staff and family—is central to the maintaining of successful and healthy partnership in business.
Following a system Many people think being your own boss means challenging each step in the business process. This is not true for franchising. If someone has already done the work, tested the procedures and proven that a system works, a smart franchisee will pay attention and follow that system.
Avoid risks Starting a business is taking a big risk. Buying a franchise reduces it. In fact, successful franchisees are typically risk averse. They minimise their risk by choosing a strong franchise system with a proven track record.
Gaurav Goel is CEO, Max Mind India
