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How To Find The Ideal Franchisee

user imageEden Exchange
February 23, 2024

As a franchisor, finding the ideal franchisee can be an arduous task. You’re looking for someone who not only runs a business for you, but operates to your standards, continues your brand quality, and is the face of your company in their region. You need to make sure this person fits in with your franchise and has what it takes to do it justice.

This article will serve as a guide, checklist, and descriptive list of all the things you should be looking for in a franchisee. If you’re thinking of becoming a franchisee, then check this list too to see if you have the qualities that franchisors are looking for in their franchisees. Take a look now to learn more about the soft skills a franchisee needs.

What is a Franchisee?

In the franchise business model, a franchisee is an individual or entity that purchases the rights to operate a business using the branding, trademarks, and established business model from the franchisor. This means they get access to their products, services, training, support, and entire business model in exchange for franchisee fees and royalties.

As a franchisor, you will have franchisees spread far and wide, operating in their own regions but under your name. Finding high-quality franchisees who will serve your overall brand well can take time and energy. It is imperative that you put in this time and energy, too, to ensure the quality of your brand doesn’t suffer.

What Makes the Ideal Franchisee?

Below is our list of skills and qualities we think make for a good franchisee based on our decades of experience helping franchisors find franchisees.

#1 Entrepreneurial Spirit

An entrepreneurial spirit is usually characterised by creativity, a strong drive, and a willingness to take risks in pursuit of high-value and innovative business opportunities. Someone who is entrepreneurial will exhibit signs of being resourceful, taking initiative, and having a passion for creating successful ventures for themselves.

An entrepreneurial spirit can be incredibly useful in the franchise business model as it ensures that your franchisees will aim for success and set out to achieve as much as possible. It will also give them the confidence they need to lead.

#2 Good Work Ethic

A good work ethic means that the franchisee not only wants to work for you, they want to work hard for you. Someone with a good work ethic will consistently deliver excellent results and always put the effort in to make sure things succeed.

They are committed to the job and the brand and will be reliable. Reliability and dedication are top skills for franchisees if you want someone to count on working for your brand.

#3 Financial Stability

Firstly, financial stability means that a franchisee can buy into your franchise. Most franchisors ask for a franchisee to pay a fee to use branding, trademarks, etc., so ensuring that a potential franchisee has this cash liquid is always a good idea.

Another reason financial stability is a good quality for a franchisee is that it shows good financial management capabilities. It means they know what running a business might entail and keep their accounts and finances in order.

#4 Adherence to Systems and Processes

Potential franchisees need to be able to adhere to your systems and processes to ensure standardisation across the brand and the same level of quality at each one of your locations. If your potential leads show a neglect for rules and systems, they might not be right for you.

The main difference between owning your own business and being a franchisee is oversight. Franchisees will have the support of franchisors which can be hugely beneficial when trying to create a successful franchise, but it also means adhering to strict protocols and guidelines to maintain continuity.

#5 Good Interpersonal and Communication Skills

Being a good communicator is key to being a good franchisee. You want your franchisee to communicate with you and other franchisees effectively so that you can maintain a back-and-forth. If you find your potential franchisees difficult to communicate with, then they might not be the best fit for your available locations.

You want to be able to get timely updates, be notified of issues, and build a rapport with your franchisees to ensure that everything is running smoothly on their end. You can’t do this if your communication styles don’t match.

#6 Good Customer Service Skills

The majority of franchises will require some level of customer service, so experience in the role might be beneficial. It means they’ll be able to sell your product or service and ensure customer satisfaction across the board.

One of the things your franchisee pays for is your brand recognition, so you need to ensure that they continue to foster positive associations with your brand through good customer service.

#7 Ability to Problem Solve

While you are always going to be available to give your franchisees support when they need it, on a smaller scale, franchisees will need to be able to problem-solve. Look for instances in their employment or previous franchisee experience where they have effectively solved problems without outside input.

A franchisee who can be left alone most of the time is always good for business.

#8 Leadership 

Franchisees are like small business owners. They will likely have a team of their own and, as such, need to have some leadership skills to not only delegate tasks but also to ensure that their employees continue your brand quality at their location.

You need someone who will motivate employees to develop skills, offer excellent customer service, and work their hardest to maintain your high standards in their area.

#9 A Passion For the Industry

While not all franchisees will have direct experience in the industry in which you operate, it is always good if they at least have a passion for it. In most cases, anyone applying to be a franchisee with you will have some experience or passion for the industry itself.

Having an interest in the industry they work in will often mean franchisees push to develop, work hard, and consistently dedicate themselves to the work.

#10 Local Market Knowledge

Another quality that always comes in handy to franchisors is if their franchisees have a knowledge of the local market. Perhaps they have operated a franchise there in the past or have managed another business in the area.

Knowledge of the local market will be advantageous to you because it means the franchisees will know which products and services will work best in their location.

Additionally, it may even give you the opportunity to create location-specific products or services. For example, a fast food franchise could develop products based on local cuisine to sell at the franchises in the area.

#11 Long-Term Vision

While your franchisee contract will have an end date, it is to your advantage if your franchisees want to stay on. Working with a franchisee that has a long-term vision for their franchise might mean they purchase another location or look for ways to develop in the area.

It also means they’re not going to cut and run the moment their contract is up and leave you with a vacant location!

#12 Franchise Brand Alignment

Lastly, if your franchisee aligns with your brand values, then they’re going to work hard to maintain them. If they truly believe in your brand, what you value, and what you’re working toward, then they’re going to work much harder than someone who doesn’t.

You want your franchisees to believe in your brand as much as you do.

Other Skills That Might Come in Handy

While the above are soft skills we think will always lead to a good franchisee for your brand, there are other skills you might want to look out for in your franchisees.

#1 Technologically Minded

Not all franchises have technological processes or tools that need to be used, but if yours does, you’re going to need a franchisee who can adapt to new tech and operate it smoothly as soon as possible.

Look out for franchisees who are technologically minded or at least willing to learn!

#2 Relationships with Local Businesses

Having relationships with businesses in the local area, whether from previous business or franchise ownership or past work experience, can be beneficial to you. It might mean a helping hand when the franchise opens or just community support in the area for a new business.

#3 Previous Franchise Experience

If your potential franchisee has previous experience with a franchise, then they will have a good idea of what is expected of them and how they should operate to serve the brand best. While they may have experienced a different franchise model to yours, this experience can come in handy during things like onboarding and training.

How Eden Exchange Can Help

So, how can we help you as a franchisor?

Eden Exchange is the perfect place for your franchisee hunt. Not only can you make a listing to attract potential franchisees, but we also have our DealXchange platform, where you can find qualified leads that suit your business in one handy place.

Our team is made up of business experts from around Australia, and we’re all committed to helping you find the right people for your franchise. Find out more about the DealXchange platform and how it can help you today.

Final Thoughts

The perfect franchisee is out there and waiting to come on board. Our extensive list has come after years in the business buying and selling industry, and we’re pretty certain that all these qualities will ensure you have the perfect franchisee within your franchise.

Remember, when searching for franchisees, keep an open mind and go with your gut; if it feels right, then it probably is.

If you want more information on how we can support your journey to the perfect franchisee, then don’t hesitate to contact us now.

Who we are

Eden Exchange is an integrated multi-channel platform, simplifying business buying and selling. We match, refer and connect business buyers, sellers & brokers in an ecosystem that facilitates frictionless franchise, business and finance transactions. Visit and connect with our engaged and multidimensional transaction network today.