FRANCHISING SERIES: Find out if You would be an Effective Franchisee
Franchising is one of the most successful business systems in Philippines. According to one consultancy firm, this is because, if run smoothly, franchises create a win-win situation for both franchisor and franchisee. But if most franchisees fall into the habit of misjudging what to expect when running a franchise, then the franchising system may fail.
The success or failure of a franchise depends on the franchisee. What traits must a person possess to be a successful franchisee?
Traits of a successful franchisee
The root cause of a failed franchise is because the franchisee often expects to work less and let the franchisor to do most of the work while still getting the promised amount of money. But in reality, franchisors NEVER baby their franchisees.
One way to discourage too much dependence is if franchisees start to develop better work habits and traits:
Be open to new ideas and changes. When starting a franchise, franchisees are expected to attend seminars that would train them on new skills and knowledge. A franchisor also continuously introduces changes to the franchise any time. A good franchisee must then be ready to adapt and adjust to these new ideas and changes and be willing to comply.
Resilient and motivated. A franchisee must not expect that running a franchise is easy. Being resilient allows franchisees to always be ready for the worst. Self-motivation is also very important because running a business is difficult and there will be times when it’s tempting to quit.
A team player. People who are used to being independent, stubborn and who would like to change the system do not make good franchisees. A team player is also someone who understands the needs of other people — an important trait when handling customers.
A good follower. Franchisors need someone who can follow their rules and regulations to the dot. Franchisees also need to step back once in a while and let the franchise play the leading role.
Task-oriented. A franchisee should have a “task-oriented” outlook. This means that the franchisee must be able to focus on performing tasks according to the patterns and programmes set by the franchisor. The tasks compose of specific goals that can be achieved by meeting deadlines and quotas.
Good at communicating. A franchisee must be able to speak clearly to convey his or her ideas to the franchisor and to the employees effectively. Being a good communicator also means that there will be less chances of misunderstanding between franchisor and franchisee.
Franchisees must also have the basic traits of a successful business owner such as a sense of leadership and a skill at managing money. A business owner is able to direct cash flow and make ends meet even at the most difficult times. Knowing when and how much to spend at any time will keep a franchise’s finances healthy.
These traits are just some of the important habits that franchisees must possess to have a successful franchise. Before you approach a franchisor, try to evaluate your personal traits and habits. Check if you possess and practice the necessary franchisee traits listed above in your everyday activities.
Most franchisors only grant a licence to franchisees who they see are equipped with the right motivation and characteristics. Be honest with yourself during self-evaluation because it is important to see whether you are truly ready to start your own franchise.
Do you have any other top tips for people who want to be a franchisee? What difficulties have you experienced as a franchisee and how did you solve them? Share your experiences below!