What Makes a Good Franchise Owner?

franchise owner

Your Guide to Franchise Ownership

There is an estimated 775,000 franchise establishments in the U.S., and that number continues to grow. Why? Because the franchise model works! By leveraging a proven system, support and training, you can step right into a franchise business much more seamlessly than starting from scratch. But you have to do your due diligence... and that's where the IFPG Franchise Buyer's Guide comes in.

By arming yourself with knowledge and information, you can be well on the way to a new path as a franchise business owner. We have you covered every step of the way!

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Are You Cut Out for Franchise Ownership? Check Out These Must-Have Traits for Successful Franchisees.

There may come a time when you are sick of your corporate job and the 9-5 grind that comes with it. Maybe you want to be your own boss but never took the steps to do it. If this sounds like you, becoming a franchise owner could be just the thing you need to get the financial independence and work-life balance you crave. 

By investing in a franchise, you have access to a proven system, training and support, and a built-in fan base. You don’t have these benefits when starting an independent business from scratch.

But franchising isn’t for everyone. So, what does it take to be a good franchise owner? Here, we have outlined some must-have traits to be successful in franchise ownership.

Goal-Oriented

When you decide to invest in a franchise, you have to consider your goals for the business and where you want it to go. What are your financial goals, and what is your plan to achieve those goals? Do you want to own a single unit or multiple units of the franchise? Are you looking to own the franchise full-time or part-time? Having all of these questions answered before you consider owning or buying a franchise will give you direction and purpose.

A Good Communicator 

A key to the success of a franchise is the communication between the franchisee and the franchisor. Successful franchisees should be able to reach out for help when they need it and have the ability to voice concerns when they arise. It is hard to succeed in franchising without strong communication skills. As a franchise owner, you want to be in constant communication with fellow franchisees, employees, and vendors, as this will help you know what to expect with the franchise.

Adaptable to Difficult Situations

Good franchise owners prepare for challenging situations, including a pandemic or an economic downturn, and have an emergency plan in place to avoid the possibility of business interruption or closure. This can include having emergency funds set aside for when you need them. Also, be willing to change with the times.

Resilient

You are likely to make mistakes in business. Whether they are big or small, the best way to overcome these mistakes is to acknowledge them, fix them, and not obsess over them. Obsessing over errors doesn’t help anyone, and these situations can be opportunities to learn what not to do next time.

Follow a Proven System

A major benefit to owning a franchise is being provided with a proven working system. This includes following branding guidelines, having employees wear a specific uniform, and putting out branded marketing materials, trademarks, and logos. While there is no guarantee of success in franchising, a common reason for failure is not following the franchise model. Following this system is what makes a good franchise owner.

A Team Player

To run a successful franchise, you need to be a team player to ensure that your staff and managers feel like valuable parts of the company. If employees feel valued and notice that you take the time to listen to what they have to say, they will enjoy coming to work and providing customers with a better experience as a result. It would be wise to have regular meetings with other franchise owners to collaborate and share the best practices to make the franchise successful.

Risk-Taking 

As with any business venture, franchise ownership comes with risk. What makes a good franchise owner is being able to take that leap into franchise ownership and trust the system that is provided to you. You are putting your own capital into the business, so with big risk comes big rewards.

Take Accountability

It is your responsibility to strategically implement the system that the franchisor has given you. The success of the franchise business comes down to your work ethic and the time you put into it. Being a successful franchise owner means that you celebrate wins while acknowledging losses and doing better the next time.

 

successful franchisees

Organized

As a franchise owner, a key to running the business efficiently is being organized. From implementing marketing strategies to dealing with customers, operating a franchise store or home-based business can be overwhelming if you don’t properly keep track of sales or other tasks, such as counting inventory. In order to become more organized, you should be aware of tasks that you may need to outsource and make a schedule of your goals and plans.

Persistent

Purchasing a franchise business and operating it properly comes with discipline and hard work. Especially in the beginning stages of being a franchise owner, you may need to work long hours and weekends in order to get your franchise store off the ground. It may take longer than you expect, but your hard work will likely pay off.

Passionate 

Owning a franchise business is a calling that some entrepreneurs have. While being a franchise owner does take hard work, remember that this business is something you should be passionate about. Your time, sweat, and hard-earned dollars are going towards this business, and you should not waste that investment on a franchise opportunity that isn’t ideal for you. Not only are you making the life-changing decision to become your own boss, but you can become an indelible part of the community. You need to believe in your franchise business. As a result, others will flock to it.

Working with a Franchise Consultant Before Owning a Business


In order to determine if being a franchise owner is right for you, you should speak with a Franchise Consultant. Based on your financial background, skills, and goals, this professional will guide you down the right path to find ideal franchising opportunities for you. At no cost to you, this professional will assist you with reading the Franchise Disclosure Document and getting the information that you need to know before owning a franchise.

For example, do you align with the franchisor’s values and have the characteristics of their ideal franchise owner? The job of the Franchise Consultant is to connect you with franchisors you will likely succeed with. From popular franchises to emerging brands, the consultant will likely know about a variety of franchising opportunities that will give you options to consider. Contrary to popular belief, “the bigger the franchise, the more successful the franchisees will be” is false. Pick a brand that you believe in and would recommend to family and friends. 

According to FranConnect’s Franchise Sales Index, referrals from Franchise Consultants, friends and family are a top source for conversions. Research shows that referral marketing can typically result in a 10 percent to 30 percent increase in sales.

What Makes a Good Franchise Owner?

There are certain characteristics that successful franchisees must have. They have to be resilient, able to follow a proven system, be a team player and unafraid to take risks, take accountability, and be organized. To find out if franchising is a viable path for you, consider speaking with a Franchise Consultant.

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Do you love helping people? Does the idea of being your own boss appeal to you? A career as a Franchise Consultant lets you have it all: a flexible, home-based business with incredible earning potential. And here’s the best part—your work will make a difference! IFPG provides:

  • Over 150+ Hours of Continuing Education
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