What Franchisors Typically Look for in a Franchisee
Are you exploring the possibility of a franchise investment? It’s understandable why. Many entrepreneurs consider a franchise business because they’re provided with a model that can effectively help them start and operate their businesses. However, the franchise model itself is not a guarantee of success. Rather, it’s just one piece of a larger system that also includes a great franchisor, a solid brand, and an exceptional service or product that resonates with consumers.
Of course, learning how to start a franchise goes beyond finding a company, signing your name on the dotted line, and opening your business. You have to first do some legwork in what the best franchisors typically look for in a franchisee. It can save you a lot of time, effort, and heartache in your search for a smart franchise investment and lucrative opportunity.
There’s probably no surprise here, right? Any business, franchise or not, requires some capital and a franchisor is going to have some financial requirements. The fact of the matter is that if the capital is not there, it could be a disastrous situation all around. For that reason, franchisors often look for a minimum amount of net worth and liquidity. As with any business, there are going to be some startup costs and it’s going to take time before you actually make a profit. Without capital, you could be dead in the water before anything gets going.
It’s important to note that this is not just a protection for the franchisor; it also protects you against unexpected expenses that may arise in the normal course of getting a franchise investment off the ground.
A Knack for Dealing With People
It’s true that not every franchise requires a ton of customer facing; however, as a business owner, you’ll always be interacting with various people including employees, vendors, clients, and a corporate team. This requires some decent interpersonal skills as well as a good attitude.
Why is this so important? Obviously, supporting and communicating well with employees can affect production; however there is another huge factor to keep in mind. No matter whom you are dealing with, you are representing and protecting a brand. The reputation of the franchise brand is not only essential to effective customer acquisition, but also the overall health of your business.
Willingness to Learn From Others
Guidance is one of the foremost assets in choosing to operate a franchise business. A good franchisor will provide ongoing support such as training, PR, marketing and operational assistance. This isn’t to say that your ideas will be silenced, but you’ll just want to keep in mind that when you make a franchise investment, you’re investing in a proven process. Your franchise brand has grown to where it is because of the blood, sweat, and tears of the franchisor. They’ve gone through the trial-and-error process and figured out what is and is not effective.
Skills and Experience
There’s not necessarily a standard of what kinds of skills and experience you need to have. Depending on the franchise industry that you choose, the franchisor may want to see certain characteristics or professional experience. Here are some examples of what a franchisor might require:
- Management or business experience
- College education
- Actual experience in, or passion for the industry
Best in Class Education Center is an award-winning supplemental education franchise with a national presence. For over 20 years, we’ve been helping K-12 students build the skills and foundation necessary to improve and excel in education. Our processes, proprietary materials, and overall business model are the bedrock of our success. Of course, passionate entrepreneurs who want to make a difference in their communities and lives complement all that.
We’re currently looking for motivated individuals to be a part of our team. Get in touch with us to find out more about a franchise investment with Best in Class!