WHAT MAKES A SUCCESSFUL FRANCHISEE?
- Dhawal Shah and Dheeraj Gupta
The success of operations of the franchisor lies more in selection of a suitable franchisee apart from a tried tested and proven system, feasible business plan, sufficient profit centres, and motivated employees. We shall discuss the traits that make a franchisee successful.
The characteristics that make an individual, a successful franchisee are that they are prepared to follow the franchisor's tried and tested system, are self motivated, prepared to work full time in the business, capable of managing people and ofcourse a good leader.
Successful franchisees are able to handle high stress levels. Initially, in a franchise venture the factor that determines the success and failure of the venture is the amount of dedication, determination and commitment of the franchisee. If the franchisee just believes in the franchisor and keeps investing his time and passion in the business, he is more likely to be successful.
Belief in the system: Entrepreneurs have an almost irrepressible need to reinvent the wheel based on their incredible optimism and confidence in their ability to figure out how things should be best done to maximize results. Successful franchisees, on the other hand are looking for operating proven systems. They don't want to have to start from the grassroots and try to discover the best way to do a particular thing. They want a proven system that tells them the best way to do anything associated with their line of business. They are willing to learn from others to avoid making mistakes, so they can be more successful more quickly. Being patient is important. Some stores take a little while before they turn profitable. Buying a franchisee is not a license to make money minus the hard work.
Contribution to the network: Successful franchisees that have completely gelled in the system, start contributing in terms of ideas and innovation to get ahead of the competition. As franchising in India is still at a nascent stage, the no. of national players are few. And they face competition from different regional players in different markets. Often, the franchisee is best able to determine as to how he can get the better of the market and along with the strong back-end support of the franchisor can achieve strong results.
Support and Training: Successful franchisees always ask in doubt, they are always looking at ways in which they can increase efficiency and profitability of the business. Franchisees make a considerable investment in the business in terms of time and money; they often have their life savings at stake and hence cannot risk straying away from a set system standards. They constantly ask advice of the franchisor support staff and other successful franchisees and follow the advice
- Dhawal Shah and Dheeraj Gupta
The success of operations of the franchisor lies more in selection of a suitable franchisee apart from a tried tested and proven system, feasible business plan, sufficient profit centres, and motivated employees. We shall discuss the traits that make a franchisee successful.
The characteristics that make an individual, a successful franchisee are that they are prepared to follow the franchisor's tried and tested system, are self motivated, prepared to work full time in the business, capable of managing people and ofcourse a good leader.
Successful franchisees are able to handle high stress levels. Initially, in a franchise venture the factor that determines the success and failure of the venture is the amount of dedication, determination and commitment of the franchisee. If the franchisee just believes in the franchisor and keeps investing his time and passion in the business, he is more likely to be successful.
Belief in the system: Entrepreneurs have an almost irrepressible need to reinvent the wheel based on their incredible optimism and confidence in their ability to figure out how things should be best done to maximize results. Successful franchisees, on the other hand are looking for operating proven systems. They don't want to have to start from the grassroots and try to discover the best way to do a particular thing. They want a proven system that tells them the best way to do anything associated with their line of business. They are willing to learn from others to avoid making mistakes, so they can be more successful more quickly. Being patient is important. Some stores take a little while before they turn profitable. Buying a franchisee is not a license to make money minus the hard work.
Contribution to the network: Successful franchisees that have completely gelled in the system, start contributing in terms of ideas and innovation to get ahead of the competition. As franchising in India is still at a nascent stage, the no. of national players are few. And they face competition from different regional players in different markets. Often, the franchisee is best able to determine as to how he can get the better of the market and along with the strong back-end support of the franchisor can achieve strong results.
Support and Training: Successful franchisees always ask in doubt, they are always looking at ways in which they can increase efficiency and profitability of the business. Franchisees make a considerable investment in the business in terms of time and money; they often have their life savings at stake and hence cannot risk straying away from a set system standards. They constantly ask advice of the franchisor support staff and other successful franchisees and follow the advice
Effective Interpersonal Skills: The most successful franchisees have extremely effective interpersonal and leadership skills. These skills help them create value, enable loyalty and establish trust in the minds of their employees and consumers.
And of course, a franchisee must choose the right company to partner with. Success as a franchisee not only lies in having the discussed qualities but also in selecting the right co. The prospect should evaluate atleast twenty five opportunities, before finalising a particular franchise opportunity. This would ensure that he has paid attention to several details, which may not necessarily be brought to the attention of the franchisee. They are hundreds of opportunities available. He should seek professional counsel from lawyers, chartered accountants and existing franchisees before investing in a franchise to avoid making expensive mistakes.
Dhawal Shah is the Dy. Executive Officer of Franchising Association of India. He can be contacted at fai@vsnl.net and Dheeraj Gupta is the Director at Jumbo King Restaurants Pvt. Ltd. he can be contacted at dheeraj@jumboking.biz
