Franchisors will always say there is no such person as a typical franchisee. What they will reveal though, are the skills and personality traits they observe that have proved successful in their existing franchise network. So while there is no identikit franchisee that you can match to, there are common characteristics.

And of course not everyone is cut out to be a franchisee. Someone who dislikes taking direction and is bursting with ideas on how to run a business isn’t likely to succeed in a format that requires compliance to an existing model and all the processes that have helped build its success.

Greg Nathan has great credentials when it comes to revealing what personality type makes a great franchisee. A regular columnist for Franchising magazine, Nathan is a respected psychologist and trainer within the franchising sector – and with his own franchisee experience behind him he understands the franchise relationship, what makes franchisees tick, and what makes for personal and business success.
 
So in his view what are the personality traits that make for great franchisees? First up Nathan is quick to change the language. He points out that psychologists can’t agree on how to define personality. “We us the word attribute, psycho-social attributes, and these include aspects of a person’s life that impacts on performance. Our relationships affect behaviour and performance.”

Research conducted last year by Nathan’s company, Franchise Relationships Institute, is, he believes, the most comprehensive study of franchisee attributes. The study surveyed 2,000 franchisees across 61 systems.
 

What the research revealed:

Education

An academic background doesn’t set you up to be a great franchisee. Dropping out of high school isn’t a good start, but once someone has completed secondary education, there is an inverse relationship between franchise success and university education, says Nathan.  

“I would say that signing up to degrees is a bad idea in franchising. Concepts are not relevant. Franchisees want to know: how do you lead a team, how do you make the numbers work?”
 

Energetic, enthusiastic, engaged

“Higher achievers have a higher engagement with the brand, they are passionate when they talk about it.”  

These high achievers also showed significantly better performance across customer service, financials, and constructive participation,” says Nathan. And he stresses that it really is the package of all three elements that marks a good franchisee.

“People can deliver great service but don’t engage in the community of the franchise. Equally, if a franchisee is making money but is miserable in the group, it all starts to unravel, they become negative.”
 

Is there a personality match?

Nathan admits sometimes it’s hard to know what it will be like to be a franchisee, so interviewing existing franchisees as part of the due diligence means you can see if your personality is similar. “If so, that’s a good sign. You get the feeling ‘these are my people’,” he says.

Family and friends

It’s important to look beyond the boundaries of the franchise to the support network that will sustain you.  If you’re family life is reasonably stable, it’s easier to navigate the pressures and the challenges of running a business, Nathan suggests.  

“Running a business drains people’s energy and affects their attributes. So if good colleagues, friends or advisors support you they can make a big difference.”

Fit and able

Considering your health is also important – how does it impact on your business, how realistic is it to take on new business with long hours?

“General research has found happier, healthier people are better paid.”