While in the franchise-buying process, it is imperative that you do your due diligence to ensure that the franchise you choose is a good fit for you, it’s also important to know that franchisors are also looking for a good fit in a franchisee.
Franchisors can be picky about who they work with. After all, it’s their brand reputation at stake! Here’s what they’re looking for, which can be helpful for you to understand to ensure that you align with their criteria.
1. Enough Capital to Launch and Sustain the Franchise
Money is, understandably, a large part of the franchise equation. You’ll have to pay the franchise fee as well as cover any startup costs (construction, payroll, inventory). That doesn’t even include paying yourself! And since profit can come at different times, franchisors want assurance that you have enough to cover several months — if not the first year — of expenses.
2. An Entrepreneurial Spirit … With the Ability to Adhere to a System
Franchisees are entrepreneurs, in a sense. They need the drive to work their hardest to get the business established, and be willing to do whatever it takes to get there. That being said, franchises are not independent businesses, and there are systems that a franchisee will have to follow. Some entrepreneurs prefer to march to the beat of their own drum, and those don’t tend to do well in running franchises.
3. Passion About the Industry
It stands to reason that if you’re buying a child care franchise, you love kids. Otherwise, why do it? Franchisors want passionate people to help them spread their brand. If you can demonstrate your love for the industry or for your customers, you’ll get the green light.
4. An Ability to Connect with Customers
Franchisors spend millions to advertise their brands nationally, but where they’re weak is connecting with the customer one-on-one. That’s where having an outgoing and caring franchisee is a huge benefit. Because you will be a representative of the brand, the franchisor wants you to be that liaison between it and the customer.
5. Being in it For the Long Haul
Buying a franchise — or launching any kind of business, for that matter — isn’t the quick path to riches. Franchisors are looking for long-term relationships, not people looking for overnight success. If you’re willing to build your business over time (maybe even investing in multiple franchises), the franchisor would be lucky to have you.
When meeting with a franchisor you’re interested in partnering with, put your best foot forward. Remember: you want to come off as someone who is enthusiastic, passionate, and experienced so that the franchisor has the confidence that you are the best representative to carry the brand into new markets. Prove that, and you’ll soon be the proud owner of a new franchise!