Why do some franchisees fail and others succeed? It’s a question I often get from candidates, especially those who are nervous about risk. In my opinion – and my experience – franchising is less risky than traditional entrepreneurship. With a proven business system to guide you, marketing and operational help from your franchisor, and a network of fellow franchisees to provide mentorship and advice, you have abundant safeguards to support your success. But beyond that safety net, you need to have the personal traits of a successful franchisee. If you’re lacking these qualities, the deck will be stacked against you from Day One. But if you have them, you’ll be equipped to achieve your goals.
Trait #1: Work Ethic That Builds, Not Burns
I love franchise ownership for the freedom and flexibility it provides. Executive franchise ownership, especially, is an excellent way to earn a full-time income with part-time work.
However, I’ll freely admit that the part-time work part doesn’t come along until later in the game. When you’re first launching your franchise, you’ll have to put in some long hours. This is true for owner-operators, who are often the business’s sole employee in its early days, and for executive owners, who often juggle a day job while starting their franchise business.
But the key to franchise success isn’t just a willingness to work hard. It’s the ability to work hard in a way that builds the business. Of all the traits of a successful franchisee, this one may be the most important. You have to combine a strong work ethic with vision, strategy, and discipline, so that your long hours pay off in profitability. If you just work hard without exercising your executive know-how, your business will consume your time and cash without delivering the wealth and freedom you’re seeking.
Trait #2: A Balance Between Compliance and Innovation
Why buy a franchise when you don’t intend to follow a plan? You’d be surprised to know how many new franchisees do just that. For whatever reason, they go into the process thinking they’ll hang the franchise brand on the door and then just do things completely their own way.
But here’s the thing: any good franchisor is in business because they’ve figured out how to be successful. Their system is a proven method for selling their product or service, so going completely off on your own track doesn’t make sense. Especially in the early days of your franchise, it’s crucial to become an expert at implementing the franchisor’s system.
Once you’ve done that, however, you can innovate from within. The most successful franchisees are those who follow the system but know when and how to suggest modifications that help the business evolve. This might mean supplementing corporate marketing with your own campaigns, or working with your franchisor to plan and test new promotions or even a new product or service. However you do it, balance is key.
Trait #3: Ability to Problem-Solve Without a Committee
Particularly in large corporations, decisions are often made by committee. Even CEOs frequently have to get board approval for major changes. So if you’re coming to franchising from the corporate world, you may be accustomed to setting up working groups, spending weeks or even months analyzing data and writing reports, and then making multiple presentations to higher-ups before you can solve a problem.
That kind of process won’t work in the franchise world. As you grow your business, you’ll want to build a good team around yourself and pay attention to their expertise when making decisions. But the buck stops with you. And when a problem emerges, especially in the early days, you need to be able to assess the situation quickly, act decisively, and keep going.
You also need to be okay with failure. In the corporate world, especially as you climb higher in large companies, failure is a dirty word. Everyone wants to be successful, all the time. Mistakes can be outrageously expensive, both to the bottom line and to your job. When you’re a business owner just getting started, however, failure is going to happen. The key is to learn from it, adjust, and move on.
Trait #4: Culture-Oriented Leadership
Turnover is bad for any business. Even if an employee was not a good fit for your franchise, when they leave, some amount of institutional knowledge leaves with them. And the team that’s left behind has to adjust – a process that reduces efficiency and morale.
So if you’ve hired good people, how do you hold onto them? It’s all about culture-driven leadership. As the business owner, you set the tone, and it’s important to think beyond just hitting your revenue goals. Make your workplace a happy place, and people will not only want to stay, they’ll want to do their best for you.
When I say “happy place,” I’m talking about something deeper than people just feeling cheerful while they’re at work (though that can be an important part of it). I’m talking about creating a company where your employees know that you appreciate them and have their backs. A key part of this is accountability – not just holding your employees accountable to their KPIs, but holding yourself accountable to creating the conditions for their success.
Trait #5: Ability to Embrace Change
Particularly in today’s world, the marketplace shifts daily. So one of the key traits of a successful franchisee is the ability to embrace change. All the other key traits can feed into this. Adapting to change is much easier if you’ve laid the groundwork for growth, you understand when and how to innovate within the business system, you’re not afraid to make decisions without a committee, and you’ve created a culture that fosters healthy high performance.
As the owner, it’s your responsibility to be aware of broader economic trends and understand how they’re likely to affect your business. Stay plugged into your franchise ecosystem and maintain a positive relationship with franchisor HQ – both can provide key intelligence and support if you have to adapt. Most importantly, maintain a mindset of constant improvement and education. The moment you stop learning is the moment your business starts to die.
I’ll be completely honest: None of this is easy. But it is incredibly engaging, rewarding, and fulfilling. And unlike in the corporate world, it’s all for you, your family, and your employees. If that sounds like the life you want, book a call with me today. I can help you figure out a path to franchise ownership that fits your personal goals – and I do it all for free. A 20-minute call is all it takes to get started on your road to independence.
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