11 Signs that Your Candidate is Ready for Franchise Ownership

Not Everyone is Suitable for Franchise Ownership. Here’s How to Tell if You’re Working with Ideal Candidates.

As a Franchise Consultant, the name of the game is helping ideal candidates succeed in franchise ownership. To do so, you must first determine if they are suited for it by asking questions about their life, goals, financial situation, and more.

Here are 11 signs that your franchise candidate is ready for business ownership.

11 Signs of Readiness for Franchise Ownership

1. Financially Healthy

A business investment is one of the biggest purchases that most people will ever make. Before investing in a business, ideal candidates should be economically healthy. The franchise candidate should meet the initial investment of the franchise, minimum net worth and have plenty of liquid capital as a cushion for the first year or more in business.

2. Strong Leadership Skills

Entrepreneurs need strong leadership skills to be successful in franchise ownership. These include decision making ability, the capacity to lead teams, delegate and set goals. Franchise ownership is more about working on the business, than in the business, so it’s important to know how to hire the right people and keep them engaged.

3. Good Communicator

Being a good communicator is critical for successful franchise ownership. You can determine if a franchise candidate has this quality based on their communications with you. Do they respond quickly to emails and answer phone calls? Do they meet deadlines? These simple but essential skills are a must-have for franchise business owners.

4. Business Acumen

While prior business experience isn’t always necessary for franchise ownership, it’s helpful to have general business savvy. For example, franchise owners should have a basic knowledge of profit and loss (P&L) statements and be comfortable with numbers. Ideal candidates should also be able to build relationships, manage teams, inspire others around them, negotiate, and have marketing skills.

5. Ability to Build Relationships

Franchise owners are the pillars of their communities. There are many ways that they can get involved in their communities, such as hosting fundraisers and sponsoring local sports teams. These connections and efforts help franchise owners establish themselves in their communities, attract customers and employees and promote the business with positive PR. 

6. Passion for the Business

They say if you’re passionate about what you do, you will never work a day in your life. This is especially true with franchise ownership. Every franchise has its own distinct culture and mission that should align with a candidate’s beliefs. 

After all, why would you put money and time into a business you don’t believe in? For example, some franchises may be faith based while others are eco-friendly. You can learn more about your candidate by asking questions about their passions and goals.

7. Military Background 

Franchise ownership is all about following a system and working in a team environment — which military personnel are trained to do. If your candidate has a military background, you can have confidence in their ability to run a franchise. From vending and property management to commercial cleaning and dog grooming, veterans have amazing leadership skills to run a successful franchise business. Veterans are team players and are mission driven — all essential to franchise ownership.

8. Ability/Willingness to Follow a Proven System

A major benefit of franchise ownership is support and training. But, even with those perks, there is no guarantee of success. Many franchisees fail because they don't follow their franchisor’s proven system. If a candidate is coachable and appreciates a proven system, it will increase the likelihood of success. To determine if your candidate is coachable, you can attend a franchisor’s Discovery Day to see how they interact with the franchisor.

9. Time Management

We all have 24 hours in a day, but not everyone is a good time manager. If your candidate is struggling to get in paperwork on time or getting to meetings on time, then your candidate may not be suitable for franchise ownership.  

10. Confidence

Even when they aren’t feeling confident, franchise business owners should project confidence in their business and the product or service they provide. If you don’t believe in your business, then nobody will. You can gauge if your candidate is confident if they ask questions and present themselves in a professional, knowledge manner.  

11. Perseverance

Business owners will always make mistakes, but it’s how they react that makes a difference. If a franchise candidate has perseverance and doesn’t let failures stop him, he could be ready for franchise ownership. Ask candidates about their struggles in life and in work to get a better sense of how they handle difficulties.

Is Your Franchise Candidate Ready for Business Ownership?

When working with a franchise candidate, there are specific ways to determine readiness for franchise ownership. Financial health is important for any business owner, so that is a primary marker. More intangible characteristics necessary for franchise ownership include leadership skills, coachability, confidence and perseverance. Franchise Consultants have a responsibility to set their candidates up for success. It’s your obligation to work with ideal candidates who have the values, economic background, and skill set best suited for franchise ownership.