Analyzing the profiles of successful franchisees is an incredibly valuable exercise for those still involved in the preliminary stages of franchise research and application. In today’s post, we offer a glimpse into the franchisor’s perspective, sharing data defining the perfect prospect so you can see how you stack up. Read on to learn what franchisors are looking for, and to determine whether owning your own business is right for you.
The Basics: Prospective Franchisee Snapshot
In this section, we synthesize research from several franchising studies to provide a basic snapshot of the average prospective franchisee.
- How old is the average franchisee? Franchising is most popular among prospect – aged 45-54, comprising 31% of those polled. The next highest group was 25-34 at 28%. At the other end of the spectrum, the 18-24 range came in dead last at only 6%.
- How educated is the average franchisee? 62% of surveyed franchisees indicated that they had achieved some level of postsecondary education, either at the college or university level, though only 29% achieved graduate degrees. But don’t feel like you’re unqualified without a postsecondary education: 9% of our survey participants were successful owning their own business with only high school degrees.
- How much capital is the average franchisee working with? 28% of those surveyed had between $100,000 and $250,000 in investment capital. Intimidated? Don’t be. 20% of participants bought their own franchise with between $10,000 and $50,000 in savings. There are enough franchise opportunities in Canada to accommodate almost any start-up budget.
- How much time down the average prospect spend on franchise research each week? Not sure if your preliminary research efforts are up to par? Research by the Canadian Franchise Association found that 60% of prospects spent 1 hour or less studying potential business opportunities, while only 19% spent 5 hours or more each week. Don’t take this as justification for a halfhearted effort, though; if you plan on owning your own business, you’ll need to be 100% sure that you’re making the right decision. You can either sink hours into research, partner with a franchise broker to help, or roll the dice with your family’s financial future!
Franchisor Perspectives: 3 Traits That Make a Perfect Prospect
In this section, we break down some traits that your franchisor will be looking for when evaluating your eligibility.
- Work capacity. Owning your own business takes a lot of work, and your franchisor will want to know you’re up to the task before they entrust you with their brand reputation. Due diligence during the research process is a great way to show them you mean business. Come prepared with pertinent, well-researched questions to show your franchisor you’re engaged, enthusiastic, and unafraid of hard work!
- Coachability. Though creative freedom fluctuates from one franchise system to the next, most franchisors want to know that you’re willing to abide by their playbook. Franchising is about consistency and efficiency, and that means learning how to do things their way. Showing the franchisor, you possess this trait is often as simple as saying so during your initial consultation.
- Chemistry. Franchising with somebody means welcoming them into a franchise family. Regrettably, you can’t choose your family in your real life, but your franchisor has this power in a professional context. Make sure that you engage your franchisor in a kind, polite, and professional manner from the moment you make contact!
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About FranNet Canada
FranNet is a 29-year-old company with roots in the U.S. Its purpose being to nurture every entrepreneur’s dream of business ownership. We actively employ a specific profiling and consultation method. This method is geared to each investor with a specific business model and based on franchise trends typically found in Toronto, Ontario, Vancouver, British Columbia, or Calgary, Alberta. The most lucrative Canadian franchise opportunities are waiting for you. For more details visit – http://frannet.ca/buy-a-franchise/canada-franchise-buying-process/