How to be the best franchisee you can be

Sarah Stowe

You want to buy a franchise? Great idea.

It can be a thoroughly rewarding career change with a profitable outcome. So how can you ensure you set yourself up to succeed?

Check out some ways to avoid common franchisee mistakes; if you thoroughly consider and apply each point, you could set yourself up to become the best franchisee you possibly can be.

9 things to do while you look for the perfect franchise

1. Definitely fall in love with the product or brand – just don’t let it cloud your judgment. There are many brands in each category. One could be better than another. Compare brands in the category you are keen on. Ask questions… a lot of questions.

2. Take the time to learn what a franchise actually is – it is basically a right or privilege to use a brand and the systems attached to it. Learn more about the basic principles of business are – take some short courses to learn more about business in general. We can never learn too much and learning never stops, no matter our age.

3. Be excited, but not too eager. Let’s do it now! doesn’t always work in franchising. Franchising is heavily regulated with lots of rules and hoops to jump through before you can start in your new business.  

4. Do your due diligence and homework and get appropriate advice. There is much to learn and there are experts out there to help you in the areas of legal, accounting and business advice. Don’t sign any documents unless you are convinced you have thoroughly done your homework.

5. Consider if you are right for franchising.  If you are the type of person who wants to create new products and try new things, some franchise systems may not be right for you.  Franchising is about following a system that has previously been tried and tested.  This can be frustrating to anyone who loves a lot of change in their life.

6. Understand that franchising is not forever.  In effect, you are renting a brand for a period of time. 

7. It’s helpful to understand the financial model for the business from the outset and also understand that the franchisor has a financial model. For retail, rent is the starting point and should be a certain percentage of the turnover you project. The cost of goods and wages should also be a certain percentage of your turnover. Understand what these percentages are so you can monitor them on an ongoing basis. Ensure you can make enough money to suit your needs.

8. Do an exit strategy before you buy. Things happen in life that we don’t expect. Have a strategy set for any potential situations that may occur that could force you to sell your business.

9. Set goals for yourself. What do you want to achieve in your first year? After five years? After 10 years? Write the goals down and review them frequently.

Now you are ready to buy a franchise

  • Invest in your own training – you spend hard earned money to buy into a franchise system and it is only fair that you invest in yourself – learn everything you can about how to be the best franchisee – from how to operate the business, how to market the business, how to be compliant – anything.  If you are required to train for four weeks, then be 100% available for that time and put the effort in.
  • Listen! Your franchisor and the head office support team will be knowledgeable.  They’ve usually been there and done that.  They know what works and doesn’t work. 
  • During your training, make sure you fully comprehend everything you are learning.  Observe what is going on, learn and practice until you are competent.  The best franchisees will, at the end of their training, be “confident, competent and compliant franchisees” and will remain so during the term of their franchise.