Do You Know Who Is Your Ideal Franchisee?

Most franchisors, if not all, have an idea of who they want to bring into their systems, what we call The Ideal Franchisee Profile. Many of them have written documents detailing the characteristics of this ideal individual. However, too many other franchisors don’t have enough clarity around this issue as to attract and accept the most suitable candidates for their opportunity. Bringing the wrong individual into the franchise system can be very costly for both the franchisee and the franchisor.

Creating the Ideal Franchisee Profile requires the franchisor to reflect about the company values, the beliefs it holds, its culture, and the traits and skills required of franchisees for the success of the business. It also calls for franchisors to be flexible and recognize that the profile will most likely need fine-tuning and modifications as the franchise organization changes and grows.

For example, new franchisors that don’t have an established and recognizable brand need and tend to attract more risk-taking franchise candidates when they first start to franchise. As the franchise system grows with increasing numbers of franchisees, the risk tends to decrease as the brand becomes stronger and the franchisor hopefully gets more financially stable.

An increasing number of franchisees usually leads to a higher name recognition making it easier for franchisees to market their business and get customers. Further, as the franchise company grows it will most likely develop stronger support systems that can result in higher success levels for some franchisees. Both of these factors lead to lowering the risk associated with the franchise opportunity. Therefore, it is appropriate to think that most franchisors will need to modify their Ideal Franchisee Profile at the point when these factors are achieved. Risk tolerant candidates will probably not make the most suitable franchisees under the new conditions and individuals with different characteristics may become better franchisee candidates.

15 Questions to contemplate and answer to create the Ideal Franchisee Profile include:

  1. What is the company’s mission and how must it align with ideal franchisees?
  2. What are the values ideal franchisees should have?
  3. What kind of prior experience should they have?
  4. What kind and level of education should they have?
  5. Where do they want to open their franchises?
  6. What reasons should they have to invest in the franchise? And, what reasons would make them undesirable candidates?
  7. Would they want to be owner operators or investors who want to operate the franchise with an appointed manager?
  8. Would they want to own one location, multiple locations, or either?
  9. What type of management style should they have?
  10. What is their ideal communication style?
  11. What is their preferred work environment?
  12. How resilient should they be?
  13. What should be their preferred tasks?
  14. What should be their abilities and skills?
  15. What are the economic resources that they must have: net worth, liquid assets, and total investment parameters?

Make sure to write down your answers to these questions and use this criteria in evaluating each franchise candidate.

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  1. […] the best chance of success in their franchise system. They need what’s called an “ideal franchisee profile“ describing the characteristics and personal traits of the individual most likely to […]