Article

Are you suited for a franchise business?

If you are wanting to start or purchase a business in New Zealand, franchising presents a great opportunity to buy into an established brand and network, which will often come with a built-in customer base.

A key part of assessing a franchise opportunity is also assessing yourself. Franchisees are required to operate their businesses according to the terms of the franchise agreement. This is great news for some people, as it offers support and guidance in running your business, but it doesn’t work for everyone.

Find out if you have the qualities of good franchisee below:

1. You thrive when following established procedures

Franchises generally have standard operating procedures and systems in place that franchisees are required to follow when running their franchise business. These are in place to ensure customers have a consistent experience with the brand across the entire franchise. If you’re going to purchase a franchise business, it’s important that you are familiar with the systems and procedures they have in place, and that you are comfortable and able to thrive as you operate your business accordingly.

2. You’re a good communicator

Being a great communicator is essential to running any kind of business, as you must be able to communicate effectively with your customers and key stakeholders. This is especially the case with franchise businesses, as you must also be able to communicate well with the franchisor and head office team. You’ll need to build a certain level of trust with the franchisor through healthy communication, so that you can feel comfortable discussing the performance of your business.

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3. You’re a natural leader

Franchises generally have standard operating procedures and systems in place that franchisees are required to follow when running their franchise business. These are in place to ensure customers have a consistent experience with the brand across the entire franchise. If you’re going to purchase a franchise business, it’s important that you are familiar with the systems and procedures they have in place, and that you are comfortable and able to thrive as you operate your business accordingly.

4. You’re a natural leader

Franchises generally have standard operating procedures and systems in place that franchisees are required to follow when running their franchise business. These are in place to ensure customers have a consistent experience with the brand across the entire franchise. If you’re going to purchase a franchise business, it’s important that you are familiar with the systems and procedures they have in place, and that you are comfortable and able to thrive as you operate your business accordingly.

You may not be suited to becoming a franchisee if you:

1. Have an innovative or entrepreneurial mindset

Due to the nature of franchises often adhering to established systems and procedures, franchising may not be a good fit for you if you consider yourself to be very innovative or entrepreneurial. If you are always coming up with new ideas to boost your business, you might be better off in an independent business.

This is because franchise business owners need to follow the same protocols as other franchisees in the network. While the franchisor may be willing to take on board some of your ideas, they will have the final say, and may block some of your business endeavours if they aren’t in the best interest of the franchise as a whole.

2. Prefer to do things your own way

Similar to the above, franchisees must be able to follow standard operating procedures set forth by the franchisor. If you have difficulty following instructions, and often find yourself doing things your own way or ‘winging it’, franchising may not be for you. This is because the products and services you provide need to be of a similar quality and experience to those provided by other franchisees in the network, and your offerings as a business must be in line with the brand identity. Franchises work because customers know what to expect from the quality of their services or products. Straying from the franchise’s business model can result in customer’s expectations not being met, which will not only damage your business’s reputation, but the franchise as a whole.

3. Aren’t much of a team player

Though you will be your own boss, owning a franchise will require you to be a team player. This is because you will need to work with many people, including the franchisor, key stakeholders, and the employees you hire to help you run your franchise. This requires you to have good communication skills, the ability to give and receive feedback or criticism, and be able to have empathy towards others. If you struggle with these things, owning a franchise business may not work for you. Just like running any business, being a franchisee comes with it’s challenges, and you will want to have people in your corner to support you through the ups and downs of being a business owner.

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