Franchisor Can’t Tell You The Profile Of The Most Successful Franchisees? Keep Shopping!

First Franchisee: “I love our products, but I can’t stand our customers! They are extremely rude and demanding.”

Second Franchisee: “I bought this business so I wouldn’t have to go out and sell door to door. I want to stay behind this cash register and make it ring. And now you’re telling me the business doesn’t work that way?”

Those quotes are real quotes.

They came directly from franchisees.

Misfit franchisees who became disgruntled franchisees.

What went wrong?

In the first scenario, the franchisee was selling soups, salads and frozen desserts. I know the story because the franchisee had heard me speak about this particular business, and about the franchisor (who was my client), and he thought he’d like to own a franchise. He visited with the franchisor, he visited a store, he met franchisees, and he did everything he was supposed to do, or knew to do, to check out the opportunity. So what happened? Why was he so unhappy just six months into the venture?

I met the second franchisee after conducting some research for his franchisor. The franchisor had asked me to compare the business practices of the chain’s top franchisees to failing franchisees. How were they different? Mostly, the successful franchisees proactively generated their sales, while the failing franchisees sat in their stores and waited for customers who didn’t show up, or didn’t show up often enough.

It’s important to note that both of these businesses were good businesses.

Both of the franchisees were good franchisees.

Both franchisors were not good franchisors – one was a crook! – but that’s beside the point. The franchisees were not disgruntled because of the franchisors.

The franchisor got the blame

In fact, both franchisees were disgruntled because they were misfits in their businesses. Of course, they blamed the franchisor!

Come to think of it, perhaps they should have blamed the franchisor, though what good does that ever do?

But the franchisor could have done something more to prevent these misfits from getting into the franchise network. Had they done so, they would have prevented two failures, because both of these franchisees ultimately closed their doors. One filed bankruptcy.

The media sent the wrong message

And everyone lost. Even franchising suffered because in both cases these chains were in the news, unfavorably. The message was that franchising doesn’t work.

Of course, that’s nonsense.

Franchising works. It can be the best way for people to get into their own business. But only some people. And only some businesses. And only when the right people are aligned with the right businesses.

The outcomes could have been different

Both of the franchisees in this story could have succeeded . . . in different franchises!

The first franchisee should never have been in a business that sold products to retail customers. The franchisee had little patience for people. He was an intelligent person with a good work ethic, but he liked to work independently. In an environment suited for his personality, he would have succeeded.

The second franchisee should never have been in a business that required him to sell services to other businesses. He couldn’t do that. Didn’t want to do that. He could have succeeded in a franchise that sold products at the mall, for example, where advertising and location drove customer traffic.

So what happened?

Good people, good businesses, bad decisions

It’s the same thing that happens over and over in franchising. The franchisees bought the wrong franchises. . . . The franchisors sold to the wrong franchisees. . . . Good franchisees. . . . Good franchisors. . . . Good businesses.

Bad decisions!

And everyone lost.

The crazy thing is that it happens every day.

Protect yourself when you buy a franchise

If you’re going to buy a franchise, make certain you’re a fit for the specific business. Ask the franchisor: What’s the profile of your most successful franchisees?

By “successful,” of course, you mean profitable and satisfied. Franchisees who love what they’re doing. And franchisees who are not only producing high volumes, but taking money home. Lots of money! (if that’s how you measure success).

Signs of a good franchisor

A good franchisor knows that profile. A good franchisor has scientifically surveyed its franchisee population to produce that profile. A good franchisor matches a prospect’s profile to the profile of the top producing franchisees in the network – and only then sells a franchise.

Don’t let a franchisor sell you a business for which you’ll be a misfit. Get the “success profile” upfront. Match your profile to it. If it’s not a fit, keep looking for another franchise to buy!

Meet Franchisors That Agree

Many franchisors insist on profiling franchise candidates upfront. Most don’t, unfortunately. I’ve written about several who do at FranchiseCentral.com. You can also learn more about profiling at FranchiseNavigator.com.

Categorised in: Buy a Franchise

This post was written by Dr. John Hayes