Like many business ventures, becoming a franchisee for an established brand requires leadership skills, industry awareness and business savvy. But there are various other aspects that must first be considered before you take the leap into franchise ownership. Read through these tips, and consider them in order to succeed as a franchisee.
1. Perfect your financial planning
You’ll be investing a lot more than your time and skills when you take ownership of a franchise. This new venture will require a reasonable amount of capital, and while you might have enough, it’s better to assess your financial situation long before becoming a franchisee than to dive into the project without having economized properly.
Of course, there are other means for getting your hands on money, from applying for a loan to finding an investor, but either financing your new endeavor will play a major role in purchasing a franchise.
Also remember that certain brands might offer you several perks, low start-up fees or open the door to preferred partners.
2. Learn the system
Your ultimate career ambition might be to head up your own business, overseeing all operations and assessing how they should be carried out. But when you become a franchisee, you have to become accustomed to someone else’s system of operations, and you need to learn to conduct business according to the specifics of that system.
All franchises operate according to a set system of operations, created and finalised by the franchisor. This system ensures that each and every franchise operates in the exact same way, thereby maintaining the brand identity, ethos, promises, and policies of the company as a whole. This covers everything from services offered to marketing strategies and administrative procedures.
If a brand has grown quickly and expansively, then that’s probably a good indicator of the efficiency of its system of operations. A company like F45, for example, which has sold over 1,300 franchises internationally since it was founded in 2012, has clearly established a scalable and replicable system.
3. Seek Franchises with Quality Training and Support
Training is a vital part for not only learning the system, but replicating it for employees. The ability of a franchisee to learn the ins and outs of a company’s system of operation then teach their employees depends on the level of training offered by HQ provides.. If both a new owner and a new employee can learn it easily, then business is sure to continue running at full speed.
Support from HQ and staff will propel you forward, and a great franchise will offer it to all new owners as well as ongoing. But don’t be afraid to ask for additional help if you need it. Support doesn’t need to stop at the end of your initial training induction. You’ll receive advice and assistance from your franchisor and fellow franchisees — all you have to do is ask.
4. Recruit wisely and instruct effectively
While some franchises might be able to run alone, most require a minimum number of employees to successfully run. With F45 Training, a minimum of 2 employees are recommended and more might be required depending on the level of your involvement in the new franchise. While your prospective employees should be able to acquaint themselves quite quickly with how yours franchise works, they still need to be properly qualified. Ensure they possess the right educational background, the sufficient amount of experience related to the industry, and some solid leadership and interpersonal skills. We also recommend that they are passionate about the brand and the industry.
Once you’ve hired the right team, don’t just leave them to get on with the job. Show your leadership skills by guiding, educating and encouraging them. If you do, then they’ll be motivated to stick around, work hard and hopefully progress towards even greater opportunities.
There are numerous important steps that must be taken on the road to becoming a successful franchisee. Make sure you take them all steadily and confidently, with a solid financial plan and understanding of the company you’re joining and remember to have fun.
This could be a life changing opportunity.