Would you make a good franchisee?
Some see franchising as a quick route to business success because the franchisee gets to ride piggyback on a proven model. But it takes these skills to become a good franchisee:
Will want to get fully involved with the business:
Like any business, making a franchise a success is hard work. It is not as though investing in the franchise will yield returns by default. An ideal franchisee should be willing to invest energy in connecting with customers in his geography and to understand their needs.
“We look for people who can commit 100% of their time to the business,” says Dheeraj Gupta, managing director, Jumboking, a chain of 100 food outlets. “A franchisee’s full-time hands-on involvement is imperative to business success.”
Will have some entrepreneurial experience:
Taking up a franchise is like becoming an entrepreneur, with the added support of a brand’s reputation, processes and centralised procurement. So, Gupta signs on people with at least a couple of years of entrepreneurial experience. That exposure helps.
Will have sufficient financial resources:
An ideal franchisee should have the investment amount readily available, says Gupta. “We don’t encourage people to take a loan to establish their first store because it puts additional pressure on the franchisee. Like all businesses, it takes time to get used to a business and learn how the ecosystem works. Thereafter, they can manage the pressure of a loan much better on the second store.”
Will buy into the brand philosophy:
Franchising is about partnering for success. Franchisees make use of the brand expertise, SOPs and marketing to deliver consistent brand experiences that lead to successful and profitable long-term partnerships.
“Franchising works best for people who appreciate the partnering that comes with a franchise and who can assimilate the learning behind the proven business model,” says Nanette D’sa, Partner, Strategic Caravan International Private Limited.
However, while an ideal franchisee will buy into the brand philosophy and sees the benefit that comes from providing customers with consistent brand experiences, he or she will also have the maturity to present ideas that could help the brand evolve to achieve greater heights, explains D'sa.
Will be passionate about the category:
“All we look for is passion for the business category,” says Anurag Gupta, Managing Director, Shear Genius Unisex Salon, a chain of salons. “We can teach the rest.”
‘The rest’ includes the business systems, management skills, even the subject matter.
Given that long hours that must be invested in the business to make it a success, it makes sense for a person who is into style and personal care to launch a salon business, for a foodie to launch a food business, for a fitness freak to launch a gym and so on. When you do what you love, long hours don’t pinch.