A business can only be franchised if it is possible to train franchisees how to manage their territory successfully. If specialist skills are required then it becomes harder to franchise. As things currently stand, it is extremely difficult to recruit intelligent and hard working people without adding any extra burdens on the franchise selection team.



A Franchise Business generally requires larger profit margins than normal. This is because the profits have to be shared between franchisee and franchisor. The franchisors share is normally between ten and twelve percent of turnover which is a huge chunk when calculated as a percentage of profits.

A strong brand name is essential for success. The franchisee is not only buying into the business model but paying a franchise fee based on an easily identifiable and distinctive brand. The business name, logos, mission statements and other design characteristics that make up the franchise should be constantly marketed so that the franchisee can remain focused on managing the business.

The niche in which the business operates should have strong growth potential in the future if the franchise model is to succeed in the long term. It might take many years to roll out the franchise in designated territories and during this time it is essential that the market for the products and services is experiencing some growth.

Finding the ideal franchisee to manage the business is often the hardest part of franchising a business. There is huge competition in the market place and most franchisors are seeking the same type of person to buy their franchise opportunity.

In a nutshell the ideal characteristic of a franchisee is the ability to work without supervision. They must have strong interpersonal skills & be able to communicate with customers and staff clearly and efficiently. They must possess decent knowledge of computers to be able to learn how to use and operate the new business systems of the franchisor.

The best age range for an ideal franchisee is between thirty and fifty years old. Any younger and their life experience is severely lacking. If they are older then fifty they usually do not possess the same drive and determination that younger people do. This obviously does not apply in all cases but does generally hold true.

Not all the essential ingredients apply in every business that is considering the franchise model. This article is not about dictating what franchisors should think about. Instead, it is about giving them some ideas of the factors at play and how to think about approaching the franchise model.