Self-Employed Business Guide: Should You Purchase a Franchise?

buying a franchise

Want to Start a Franchise? Try This Quiz

The Franchise Times once conducted a survey of the “average franchisee.” What they found was that the standard franchisee is male, in his mid-40s, owns a few franchises, works more than 50 hours a week, and went to college.

But don’t worry if this does not describe you. Franchisees come in all varieties.

Potential franchisees are people looking for a change, maybe someone in mid-career, maybe even someone who was recently laid-off. They like the idea of owning their own business and being self-employed, but want some help. They appreciate that with a franchise they are buying a brand as well as getting someone who can and will help them.

By the same token, franchisors want and need good franchisees, for several reasons. First, a successful franchisee builds the brand, while an unsuccessful one hurts the brand. And while unsuccessful franchisees can be litigious, successful franchisees become valued business partners.

So What Makes a Good Franchisee Then?

From the franchisor’s point of view then, a good franchisee should be:

• A person who is highly motivated and enthusiastic

• A hard worker

• Someone who is coachable, that is, someone willing to take direction

• Someone also willing to try new ideas and ways of doing business

• Someone with relevant experience

But the question remains: Would you make a good franchisee, is that a valid path for you to self-employment? To help you decide, take the following quiz. As you answer, please be totally honest with yourself. Some answers may seem like the right one, but it really does you no good to answer the question correctly if it does not really help you understand your franchisee aptitude. Buying a franchise is also a major commitment of time and money, so there’s that reason too.

Answer Yes or No to the Following Franchise Quiz Questions

1. I do not need to be the only boss; I am willing to listen and even follow the directions of the franchisor
2. I am willing to work very long hours
3. I personally have the financial wherewithal to get the business off the ground, and if I don’t, I am willing to borrow the necessary funds
4. I am very organized
5. I have at least five years of relevant experience, preferably management experience
6. I have managed people previously and have hired and fired employees
7. I am good at sales and marketing
8. I am willing to take a risk with money to make money
9. My family supports my decision to buy a franchise
10. I am very motivated and willing to do whatever it takes to succeed in the business
11. I am willing to follow the system, even when I disagree with it
12. I am creative, committed, and hardworking
13. I am willing to participate in company-wide events and advertising promotions
14. I like to lead
15. I can live without the certainty of a regular paycheck and benefits

If you answered yes to at least 10 of the questions, then it is likely that you have what it takes to be a franchisee. Also, note that while all of the characteristics above are important, it is especially vital that you be willing to be part of a team, are sales oriented, and are hard-working and motivated.

Even in a challenging economy, people are starting businesses and franchises and making them work. If they did it, so can you.