Entrepreneur
Here’s a common myth: There is one “right” franchise for aspiring franchise owners. As a franchise consultant who has been in the game for more than eight years, one of the most important things I’ve learned about matching the “right” candidate with the “right” franchise is that there’s no surefire equation for guaranteed success at a specific brand or concept.
Sometimes a candidate that fits a certain brand in every single statistical category will reject a concept outright. Sometimes a candidate who is hellbent on a certain brand simply doesn’t have the necessary criteria to take on the investment. This tricky balancing act is where I come in and find solutions for candidates and I’ve found that it’s one of the most rewarding and compelling parts of my job.
So instead of trying to find the magic unicorn franchise to match an individual, I flip the script. It’s more art than science. I focus on the individual first. I have found that there are three tiers that largely determine successful franchise/franchisee businesses.
Related: Considering franchise ownership? Get started now to find your personalized list of franchises that match your lifestyle, interests and budget.
Tier 1: Hard objectives
Hard objectives are those absolute, no exception, gotta-have-it requirements. The most important one: the franchise owner’s role in the business. Specifically, what will the owner be doing on a day-to-day basis, both at the offset and in the future. Will they be full-time? Part-time? Run day-to-day operations? Hire someone to run day-to-day operations?
The trajectory of this role will weigh heavily on the franchise brand or concept in question. This determines whether the franchisee can be self-employed (solo, professional and client-facing), an owner-operator (meaning the owner will have daily, direct involvement), an executive owner (daily, indirect involvement) or a semi-absentee owner (weekly, indirect involvement). Each of these models will rule out some franchises and include others.
More “hard objective” questions to consider include determining what the prospective franchisee qualifies for financially, which may differ from their actual budget. While financial qualification refers to what a lender or the franchisor believes the franchisee can afford, the budget reflects what the individual is personally willing or able to invest. These two numbers often align but are not always the same.
Additionally, it’s crucial to examine geographical territory availability. A candidate might be an ideal fit for a brand on paper, but if there’s no available territory in their preferred market, the opportunity may not be viable.
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Tier 2: Intangibles
Now for the “art” versus science. This second layer of criteria breaks into the franchise owner’s characteristics, experience and personality. There are a few important categories within this tier.
Skills and Experience: What is the professional background of the franchise owner? Do they have experience in sales? Accounting? IT? Matching up the skillsets with the role of the owner within that franchise makes a world of difference.
Another intangible is their family situation. What kind of time commitments could take time from the business? Maybe a prospective franchisee has six kids and the weekends are jammed with activities.
Many of the effects of business ownership on life are positive — autonomy, flexibility, financial security, purpose — but it’s important for a business owner to understand that this venture will not replace a traditional 9 to 5. There will be weekend and evening calls, emergencies and urgent needs that demand immediate attention. Your personal and professional lives will intertwine. You will have more flexibility, but also more responsibility.
Current Job Flexibility: Does the role a franchisee is currently in allow for a business call in the middle of the day? I get the question all the time: can I own a franchise and keep my day job? Ultimately, it depends on your day job. There’s no such thing as a truly absentee franchise owner, especially in the beginning. A franchise, like any new business, is a lot of work. Realistically, a franchisee needs to have time flexibility to be able to manage this new business venture.
Related: She Was a Lawyer with No Restaurant Experience. Now, She’s Reviving an Iconic Restaurant Chain.
Tier 3: Esoteric Things
Last on the list are esoteric things that make a surprisingly strong impact on a franchisee’s motivation and ability to get behind a franchise concept or brand. These things include (but are not limited to):
Cultural Fit: How the franchisee feels about the franchisor. Do they agree with their core values and principals? Do their communication styles mesh? You should think of a franchisor as your business partner.
English as a second language: This can be a tricky one. Depending on the business concept, it may be important for a business owner to have fluency, while other businesses do not require this.
“Ick factors.” I’ve worked with a lot of franchisees over the years and sometimes there are simply objections based on “ick factors.” For example, sometimes people just can’t get behind dirty everyday essential businesses, no matter how well that model may fit with their other criteria. (Other frequent push back comes from things like pet care, child care, senior care, etc.)
Typically, I ask people to rank these things to evaluate their experience/skills, interest, and aptitude. From here, I can find franchises that support the areas you may not be as strong in and bolster the areas where you thrive.
At the end of the day, these tiers are not exclusive in determining a franchise fit. However, in my experience, more often than not, these tiers work as a framework to help franchise candidates make well-informed decisions based on realistic and honest reflection about their opportunities.
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Here’s a common myth: There is one “right” franchise for aspiring franchise owners. As a franchise consultant who has been in the game for more than eight years, one of the most important things I’ve learned about matching the “right” candidate with the “right” franchise is that there’s no surefire equation for guaranteed success at a specific brand or concept.
Sometimes a candidate that fits a certain brand in every single statistical category will reject a concept outright. Sometimes a candidate who is hellbent on a certain brand simply doesn’t have the necessary criteria to take on the investment. This tricky balancing act is where I come in and find solutions for candidates and I’ve found that it’s one of the most rewarding and compelling parts of my job.
So instead of trying to find the magic unicorn franchise to match an individual, I flip the script. It’s more art than science. I focus on the individual first. I have found that there are three tiers that largely determine successful franchise/franchisee businesses.
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