Opinions expressed by Entrepreneur contributors are their very own.
This is a typical fantasy: There may be one “proper” franchise for aspiring franchise house owners. As a franchise marketing consultant who has been within the recreation for greater than eight years, one of the crucial vital issues I’ve realized about matching the “proper” candidate with the “proper” franchise is that there is no surefire equation for assured success at a particular model or idea.
Typically a candidate that matches a sure model in each single statistical class will reject an idea outright. Typically a candidate who’s hellbent on a sure model merely would not have the required standards to tackle the funding. This tough balancing act is the place I are available and discover options for candidates and I’ve discovered that it is one of the crucial rewarding and compelling components of my job.
So as a substitute of looking for the magic unicorn franchise to match a person, I flip the script. It is extra artwork than science. I give attention to the person first. I’ve discovered that there are three tiers that largely decide profitable franchise/franchisee companies.
Associated: Contemplating franchise possession? Get began now to seek out your customized checklist of franchises that match your way of life, pursuits and finances.
Tier 1: Laborious aims
Laborious aims are these absolute, no exception, gotta-have-it necessities. Crucial one: the franchise proprietor’s function within the enterprise. Particularly, what is going to the proprietor be doing on a day-to-day foundation, each on the offset and sooner or later. Will they be full-time? Half-time? Run day-to-day operations? Rent somebody to run day-to-day operations?
The trajectory of this function will weigh closely on the franchise model or idea in query. This determines whether or not the franchisee may be self-employed (solo, skilled and client-facing), an owner-operator (that means the proprietor could have every day, direct involvement), an govt proprietor (every day, oblique involvement) or a semi-absentee proprietor (weekly, oblique involvement). Every of those fashions will rule out some franchises and embrace others.
Extra “laborious goal” questions to think about embrace figuring out what the potential franchisee qualifies for financially, which can differ from their precise finances. Whereas monetary qualification refers to what a lender or the franchisor believes the franchisee can afford, the finances displays what the person is personally keen or in a position to make investments. These two numbers usually align however aren’t at all times the identical.
Moreover, it is essential to look at geographical territory availability. A candidate is likely to be a super match for a model on paper, but when there is no out there territory of their most popular market, the chance is probably not viable.
Tier 2: Intangibles
Now for the “artwork” versus science. This second layer of standards breaks into the franchise proprietor’s traits, expertise and character. There are a number of vital classes inside this tier.
Expertise and Expertise: What’s the skilled background of the franchise proprietor? Have they got expertise in gross sales? Accounting? IT? Matching up the skillsets with the function of the proprietor inside that franchise makes a world of distinction.
One other intangible is their household state of affairs. What sort of time commitments may take time from the enterprise? Possibly a potential franchisee has six children and the weekends are jammed with actions.
Most of the results of enterprise possession on life are constructive — autonomy, flexibility, monetary safety, objective — however it’s vital for a enterprise proprietor to grasp that this enterprise is not going to substitute a standard 9 to five. There will likely be weekend and night calls, emergencies and pressing wants that demand fast consideration. Your private {and professional} lives will intertwine. You should have extra flexibility, but additionally extra duty.
Present Job Flexibility: Does the function a franchisee is at present in permit for a enterprise name in the midst of the day? I get the query on a regular basis: can I personal a franchise and maintain my day job? Finally, it will depend on your day job. There is no such factor as a really absentee franchise proprietor, particularly to start with. A franchise, like several new enterprise, is quite a lot of work. Realistically, a franchisee must have time flexibility to have the ability to handle this new enterprise enterprise.
Associated: She Was a Lawyer with No Restaurant Expertise. Now, She’s Reviving an Iconic Restaurant Chain.
Tier 3: Esoteric Issues
Final on the checklist are esoteric issues that make a surprisingly sturdy impression on a franchisee’s motivation and talent to get behind a franchise idea or model. This stuff embrace (however aren’t restricted to):
Cultural Match: How the franchisee feels concerning the franchisor. Do they agree with their core values and principals? Do their communication kinds mesh? It’s best to consider a franchisor as your enterprise associate.
English as a second language: This is usually a tough one. Relying on the enterprise idea, it might be vital for a enterprise proprietor to have fluency, whereas different companies don’t require this.
“Ick elements.” I’ve labored with quite a lot of franchisees through the years and typically there are merely objections primarily based on “ick elements.” For instance, typically individuals simply cannot get behind soiled on a regular basis important companies, irrespective of how nicely that mannequin might match with their different standards. (Different frequent push again comes from issues like pet care, baby care, senior care, and so forth.)
Usually, I ask individuals to rank this stuff to judge their expertise/abilities, curiosity, and aptitude. From right here, I can discover franchises that help the areas you is probably not as sturdy in and bolster the areas the place you thrive.
On the finish of the day, these tiers aren’t unique in figuring out a franchise match. Nevertheless, in my expertise, most of the time, these tiers work as a framework to assist franchise candidates make well-informed selections primarily based on sensible and trustworthy reflection about their alternatives.
Distant: This is What the ‘One, Large, Stunning Invoice’ Means for the Franchise Business
This is a typical fantasy: There may be one “proper” franchise for aspiring franchise house owners. As a franchise marketing consultant who has been within the recreation for greater than eight years, one of the crucial vital issues I’ve realized about matching the “proper” candidate with the “proper” franchise is that there is no surefire equation for assured success at a particular model or idea.
Typically a candidate that matches a sure model in each single statistical class will reject an idea outright. Typically a candidate who’s hellbent on a sure model merely would not have the required standards to tackle the funding. This tough balancing act is the place I are available and discover options for candidates and I’ve discovered that it is one of the crucial rewarding and compelling components of my job.
So as a substitute of looking for the magic unicorn franchise to match a person, I flip the script. It is extra artwork than science. I give attention to the person first. I’ve discovered that there are three tiers that largely decide profitable franchise/franchisee companies.
The remainder of this text is locked.
Be a part of Entrepreneur+ right now for entry.
