What Makes a Good Franchisee?
Compared to start-up businesses, far fewer franchises fail and many become profitable in a relatively short space of time. So why are franchises successful and what makes a good franchisee?
Franchises are more likely to survive and thrive because they are replicating a winning formula. They can see the franchisor’s business, learn from it and use the exact same processes, procedures and service levels to build their business. With the exception of the customer base, they aren’t starting from scratch.
A franchisee should also benefit from on-going training and support, both from the franchisor and from other franchisees. Each will have a vested interest in getting the best outcomes for the business and by pooling their skills and experience they can collectively help the company go from strength to strength. In contrast, many new business owners are working in isolation.
The franchisee also has a known brand, so whilst they have to build brand awareness, they aren’t launching a new company. They can draw on the successes of the parent company in the form of testimonials, industry standards and awards as convincers for potential new customers.
A good franchisee will be keen and quick to learn, understand key business principles and be determined to do what it takes to succeed. They may be new to the industry, but they have researched it extensively, so they have a clear picture of their customers, competitors and potential partners. It can also be valuable to have local knowledge of your territory.
Another sign of a good franchisee is a good franchisor. Every year the Best Franchise Awards recognise achievement. Those in the top slots have always had a franchisor who is committed to supporting their franchisees. They provide training, invest in resources, encourage innovation and utilise the skills within the teams.
In 2016, Right at Home was winner of the Best Franchise award, with other awards being presented to Action COACH, Diddi Dance and Pink Spaghetti. If you are considering investing in a franchise, you may wish to start exploring these options. If you are preparing to franchise your business, you could set your sights on winning such an award in the near future.
Prospect Franchisee Certificate
A good franchisee is also well informed about the career path that they are about to embark on and are clear about what it entails to work as part of a franchise.
In order to support prospective franchisees with this preparation, the British Franchise Association and Lloyds Bank have teamed up to develop a training programme. The programme aims to build knowledge, explain the legal and financial implications, provide impartial advice and help interested parties to find opportunities that match their criteria.
The Prospect Franchisee Certificate is offered as a series of video tutorials, with regular assessments. Participants can work through it at their own pace and convenience. The programme is free from advertising, enabling participants to focus on checking their suitability for this particular career path.
With the launch of this certificate, it is hoped that franchisors will direct interested parties to complete the course as the first step in the recruitment process. In this way it can act as a preliminary filter for those that are cut out to be franchisees.
Building a Strong Customer Base
Even the most ideal candidate will be launching with a small or non-existent customer base. This means that one of the most useful areas in which a franchisor can provide support and investment is with training and tools that help build brand awareness and attract interest.
When executed in an informed way, email marketing can provide a highly effective marketing solution. Automated email marketing that is triggered when a customer undertakes an action can make it easier to remain in contact with those customers you have engaged. It optimises communication without being a drain on time and resources.
LeadsFlow is a specifically designed franchise email marketing tool that aims to simplify communications and encourage effective marketing. As part of a lead generation strategy, LeadsFlow will support you in building a customer base, whilst also managing every other aspect of the business.
Investing in such tools can fast track customer engagement, which is beneficial to everyone involved in the success of the company.