What makes a successful franchisee?

Franchising can be an exciting route into business ownership, but it isn’t for everyone. From the skills required to the common mistakes first-time franchisees make, understanding what drives success is crucial. We asked leading franchise experts for their advice…

What skills do successful franchisees need?

Shelley Nadler, legal director at Bird & Bird, explains that “at the heart of any successful franchisee is a successful business person.”

Beyond commercial awareness and market knowledge, franchisees need resilience and the ability to work independently.

“Opening a franchise can lead to losses in the early days… Resilience is therefore necessary to be able to cope with teething problems,” she says.

Franchisees also need honesty and self-awareness. Nadler notes that you need to be “honest and analytical in order to address and overcome any deficiencies in the business as early as possible.”

Brian Duckett, former chairman of The Franchising Centre, adds that compliance is equally important. “The point of acquiring a franchise is to have the opportunity to operate a proven business system. If you’re not going to comply with the requirements of that system, you should not become one of its franchisees.”

He also highlights the need for ambition, persistence and sales skills to motivate staff and drive growth.

How do franchisors select franchisees?

John Pratt, senior partner at Hamilton Pratt, stresses that franchisors need to be highly selective. “As a rule of thumb, for every 100 prospective franchisees, only ten are serious. Of those, only one or two are suitable.”

Franchisees must have the drive to treat the business differently from a standard job. Pratt says, “Holidays, time off for illness and even weekends may, at least in the early days, be a thing of the past.”

At the same time, they must follow the franchisor’s system, have family support and the financial resources to fund the franchise. Some franchises have additional requirements, such as a driving licence, hands-on skills or a willingness to cold call.

Why does a franchisor want to know about my career?

John Pratt explains that franchisors carefully assess prospective franchisees’ backgrounds to gauge commitment and suitability.

“Essentially, they are looking for a ‘go-for-it’ attitude from someone who will not treat a franchise like having a 9-5 job.”

Career stability, progression and gaps are scrutinised, particularly in sectors serving vulnerable groups like children or the elderly.

How much time and effort do franchisees need to invest?

James Whittle, managing director at Aspray, highlights the correlation between effort and success: “The theory that what you put in you get out is very applicable for franchising. If you buy a full-time franchise, you need to be prepared to put in full-time hours.”

He adds that successful franchisees are “customer-centric, driven individuals who also have people and project management skills.”

Paul Crow, managing director of luxury bathroom retailer Ripples, echoes the sentiment. He says, “We look for franchisees who are proud to demonstrate the skills of their design team to customers, enjoy talking about the company and the products we sell, and are thrilled when they complete each and every project.”

What common mistakes do first-time franchisees make?

Louise Harris, principal at Franchise Projects, observes that new franchisees often hesitate to ask questions. “They’ve paid to join a ‘system’ and then forget that if they don’t know the answer to something, it’s not only OK to ask, it’s most likely critical they do.”

She emphasises that franchising is a collaborative relationship: “If the franchisee understands that the franchisor needs the franchisee to be successful just as much as the franchisee needs to be successful, it should be a win-win.”

What skills are needed for multi-unit franchisees?

Brian Duckett notes that operating multiple units requires additional skills. “Most of the skills required of a single-unit franchisee will also be required by a multi-unit operator… However, once those jobs start to be delegated to others, the multi-unit franchisee needs many more management skills.”

This includes overseeing additional premises, staff, marketing and cash flow. Duckett warns, “One plus one unit does not always add up to two times turnover or profit, but will often need more than twice the effort to be successful.”

Conclusion

Successful franchisees combine business acumen with resilience, compliance and a willingness to work hard. They ask questions, follow proven systems and maintain the drive to grow, whether running a single outlet or multiple units.

By understanding the demands and investing the necessary effort, you can maximise your chances of long-term success at your chosen franchise opportunity.