Who makes a good franchisee?You might think at first that the profile of a franchisee is identical to that of a business owner, but this couldn’t be further from the truth. In some networks, franchising can be a rather strange hybrid between employment and self employment, in that the franchisee may be expected to perform work themselves, work to the standards set by the franchisor, and perform this work under the control of the operations manual and the franchise agreement.
Clearly, this is quite different from the day to day life of a start up business owner, who is free to set the way he or she does things and the brand that they use. Not all networks operate on this basis, and in other networks the franchisee is given near autonomy to run the business as they see fit; however regardless of network there will be a level of control and regulation from franchisor.
This can conflict with the typical personality profile of an entrepreneur, who might feel like a caged tiger with the ‘handcuffs’ of a franchise agreement and operations manual dictating day to day procedures. On the other hand, a typical employee might also struggle, in that they may be used to having direct control, supervision and direction from a superior. Once an ‘employee’ has purchased a franchise, they often find that they are shocked that work isn’t just magically coming to them!
The above is an extract from The Franchising Handbook, which is due for release later this year. Follow this link to pre-order and be one of the first to read it!