One of the misconceptions many people have about franchising is that franchise companies are looking for “true entrepreneurs” as potential new franchisees in their systems. This isn’t usually the case at all.
True entrepreneurs are those rare individuals willing to go way out on a thin limb in terms of taking the risks associated with starting a new business. They have an idea, and they generally have some sort of business plan and financing in place. They operate on the assumption that challenges will come up, but, most important of all, they have supreme confidence in their ability to overcome whatever obstacles get in their way on the journey of building their business.
They shoot from the hip and they aren’t afraid to create new solutions or change their business model on the fly–given whatever they find in the marketplace as they proceed with building their business. These folks don’t generally want to be told what to do, how to do it and when to do it, because they’re wired to make these types of decisions for themselves. These are the true heroes of the American form of capitalism, and they are indeed a rare breed.
Contrast this with what a franchise company is looking for in a franchisee. A good franchise company has typically invested in years of trial and error, gaining the experience to know exactly what a new franchise should do in order to open and operate a business unit successfully. They aren’t looking for prospective franchisees who want to reinvent the wheel–rather, they want people who’ll simply execute very well the exact plan laid out by the franchisor.Does all this mean that, if you have strong entrepreneurial traits, you shouldn’t become a franchisee? Not necessarily, but there are some factors you should carefully consider.
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