Partnering with a franchise is a mutual relationship. True, you need to be comfortable with your investment. However, remember that the franchisor must also feel like the collaboration will be beneficial. How do you know if you have what it takes to be a successful franchisee?
There are more than 785,000 franchised businesses in the United States. 300 companies begin franchising every year. Impressive stats in the business world. And now you want to be a part of this burgeoning industry. So, what is it that franchisors are looking for in a franchisee? How do you know if you’re a good fit?
At We Sell Restaurants, we have been franchising our successful business model as restaurant brokers since 2011. We know how important it is for us, as franchisors, to connect to our franchisees. Based on our experience, we will shed some light on what we and other franchisors are looking for. Here are seven things franchisors look for in a good franchisee; and why they are important.
1. Hard Work/Desire to Succeed
The top of every list for any successful person is being willing to work hard. Quality work, where you’re not afraid to roll up your sleeves and do what it takes to make your business successful. That sound work ethic makes you results-driven. You are committed to the franchise and respect the work that’s gone into making this business model. We Sell Restaurants is looking for people who have a desire to succeed. We look for entrepreneurs who are excited about the idea of helping others realize the American dream of restaurant ownership.
2. Customer Driven
Franchises in the business of serving customers or clients need to focus on the customer experience. At We Sell Restaurants, we believe in putting customer needs first. Our franchise model is designed to cater to the needs of our clients. For all franchisees, customer service is key to running a successful business.
3. Entrepreneurial Spirit
Good franchisees are innovators. They look for positive change and are inspired to take on challenges. You must be willing to take risks. Any business venture is unpredictable, but using a franchise business model takes away some of the uncertainty. Nonetheless, you have to be willing to “go for it.”4. Financial Knowledge
It is crucial to have a solid understanding of finances like payroll, invoicing, and profit margins. It’s also important to know your own personal finances and what you can afford with your business investment. Most franchisors provide ample training to prepare franchisees before opening their business. However, going in with knowledge of the industry is advantageous. At We Sell Restaurants, we don’t require prior restaurant experience, though it could be helpful. We do actively seek people who have sales experience.
Being a good communicator is vital to good business. As a franchisee, you are the boss and need to be able to provide leadership to your staff and customers. You need to know when to be authoritative and command a room. Conversely, you need to know when it’s best to have a little fun, too. Your networking skills are essential in cultivating relationships that help your business grow.6. Flexibility
Starting a business, even following a business model, means you need to follow a strict plan yet always adapt to changes. Things can always go wrong, so patience is also vital for a franchisee. Starting a business means you are adventurous and willing to try new things. There’s a balance between business savvy and go with the flow.7. Passion
Those franchisees passionate about what they are doing are the most successful. Whether inspired by building their franchise or their wealth, franchisees with ambition and drive are ones we want to partner with. Franchisors have worked hard, themselves, building a brand, a successful business model, and a sound reputation in the industry. At We Sell Restaurants, we are looking for like-minded franchisees who are passionate about restaurants.
Remember, these qualities are important to franchisors because we, ourselves, have worked tirelessly to build our business model, and we want to ensure that our franchisees are on board with us. A franchisee’s success is the franchisor’s success. There are, after all, many franchise benefits when you invest in a franchise. At We Sell Restaurants, those benefits include a low-cost investment, centralized leads, and marketing.
What to Know About Salary
The payoff is important. While salary numbers differ depending on businesses, according to a survey done by Franchise Business Review, the average pre-tax annual income of franchise owners is about 80,000 dollars. Here at We Sell Restaurants, while numbers may vary, we calculate franchisee gross commission income at $180,000 annually. Our restaurant business brokers bring in an average of $19,767 per transaction.
As franchisors, we look for entrepreneurs who will follow the We Sell Restaurants proven business model, who love people and want to support their communities while creating a great lifestyle for themselves and their families. If you think you have what it takes, request info, and let’s get started!
Robin Gagnon, Certified Restaurant Broker®, MBA, CBI, CFE is the co-founder of We Sell Restaurants and industry expert in restaurant sales and valuation. Named by Nation’s Restaurant News as one of the “Most Influential Suppliers and Vendors” to the restaurant industry, her articles and expertise appear nationwide in QSR Magazine, Franchising World, Forbes, Yahoo Finance, and BizBuySell. She is the co-author of Appetite for Acquisition, an award-winning book on buying restaurants.