What sort of qualities make for a good franchisee? Sure, not every individual will lead, manage, or operate a business in the same way, but there are some characteristics that tend to stand out among successful franchisees. At FranSource, we’ve worked alongside countless franchisors and franchisees, offering expert counsel throughout the entire franchise development process. In this article, we’ll uncover the traits, mindset, and skills that make for strong prospective franchisees.

Assumptions About Strong Franchise Candidates

When it comes to picturing strong prospective franchisees, there are probably some obvious factors that come to mind. From a practical standpoint, a franchise candidate must be able to raise the appropriate capital to launch and operate a franchise concept. Yet there are just as many intangible characteristics, such as personality traits and leadership qualities, that also factor into the decision of whether you should grant an individual a franchise.

One of the most common misconceptions related to screening prospective franchisees is that the ideal candidate must be a full-fledged business aficionado. Of course, existing experience owning, managing, or optimizing a previous business can provide invaluable insights that can be transferred to nearly any franchise concept. In the same breath, this expectation can hinder many franchisors from evaluating prospective franchisees who demonstrate other strengths that would make them an ideal fit for their concepts. Similarly, having direct expertise in the same industry as a franchise concept can be helpful, but not necessary.

Franchisors can also hyperfixate on temperamental qualities. Though personality traits such as extravertedness, charisma, and a natural inclination to assume entrepreneurial risk can seem like obvious must-haves, we know there are other qualities that serve as stronger indicators for measuring the compatibility of prospective franchisees.

The Positive Traits for Prospective Franchisees

At FranSource, we’ve had the privilege of accompanying franchisors through the process of vetting candidates for concepts that range from fried chicken restaurants to children’s retail to wellness spas, and many others. Across more than three decades, we’ve taken these experiences to share the universal traits we’ve observed in the strongest prospective franchisees that aren’t easily recognizable on paper.

While a franchise provides an existing system, it still requires a high level of attention and investment from a franchisee for continuous success. As business owners, franchisees should expect to ride the highest highs and lowest lows of their particular unit(s). That’s why having a deeper passion surrounding a product and its mission is a fundamental motivator in helping franchisees persevere through everyday challenges, optimizing systems, maximizing customer service, and spurring innovations. When interest among prospective franchisees seems surface-level, whether it be a hyperfixation on profitability or an obvious power play over employees, then it is likely the case they will not live up to the values and mission of your business.

Similar to passion, other indicators of strong franchise candidates include solid communication skills. If a lead waits weeks to respond to emails, misses scheduled meetings, or falters in other ways that disrupt your franchise sales process, these patterns are indicative of the type of franchisee you would inherit. Fielding prospective franchisees who respect your time, resources, and sales process demonstrates genuine interest and a strong foundation for a transparent, long-term relationship.

Along with personability and communication skills, strong candidates often bring a positive attitude and strong work ethic that complements a persistent growth mindset. When a potential franchisee displays these qualities, he or she often views the everyday needs of a unit, both in oversight and execution, as a vehicle for personal improvement, whether it be managerial skills, adaptability to unforeseen circumstances, absorbing feedback, or demonstrating general resilience.

In a nutshell, ideal franchisees are open-minded, eager to learn the ins and outs of your concept at the level where they can then share the same knowledge in hiring, training, managing, and retaining their own team of employees. Another aspect of this characteristic is compliance with the system of operation and brand guidelines. If it seems that a candidate would struggle to adopt your systems or insist on bringing his or her “personal flair” to various components of the business, then this individual is not a good fit for a franchise model. By identifying prospective franchisees eager to immerse themselves in the culture, systems, and mission of your franchise concept, you can trust that the new unit will maintain reliable and healthy performance.

And just as it is important for prospective franchisees to connect with you, it is equally important to perceive his or her ability to lead employees in a way that embodies your core values and enables them to feel appreciated and valued. Over the years, we’ve encountered our fair share of prospective franchisees who view a potential franchise as a way to exercise power over others. In these cases, the decision is easy, and an official grant of a franchise is almost always withheld.

The traits we’ve discussed so far relate to strengthening the internal operations of a franchise concept, but what many franchisors overlook in fielding prospective franchisees is a commitment to having a positive impact on the surrounding community. At the very least, this dedication means providing exceptional service in every customer interaction. However, community engagement can take shape in a variety of ways that allow the brand to interact with and steward its local neighbors.

To gauge a prospective franchisee’s level of interest, consider asking his or her plans for charitable giving, support for youth recreation or educational programs, sponsorships of local events, or hosting family-friendly events that spread awareness for the new location and display your overall involvement in the community.

Discovery Day is a Double-Edged Sword

We’ve dissected the positive qualities of an ideal prospective franchisee, but how can a franchisor test whether a candidate possesses them? Of course, there're the many phone calls, presentations, and meetings that make up the franchise sales process, and some franchisors will even incorporate personality or behavioral tests like DISC and EQ assessments.

Though these interactions all play a role in determining whether a candidate fits the mold, we know another tried and true test that has often sealed the fates, either good or bad, of many prospective franchisees: Discovery Days.

For those who are unfamiliar, Discovery Days are in-person meetings between a franchisor and a prospective franchisee where the candidate experiences firsthand what it’s like to be a franchise owner with the concept. Discovery Days also provide the opportunity for the candidate and corporate team to interact personally and get to know each other at a higher level. These settings typically take place at a flagship location and/or the corporate office depending on the concept. As part of the final stages in the evaluation process, Discovery Days serve as the final “test” that helps the franchisor and the prospective franchisee determine whether they’re a good fit.

These events usually begin with management team introductions, a review of the agenda, as well as an overview of important details, such as the franchisor’s management structure, initial and ongoing training and support, the initial investment, and the site selection and construction processes and timelines for a new unit. Discovery Days also typically include tours of existing units and an overview of the technology solutions, staffing requirements, marketing support, and branding components, before ending with a final Q&A session and a discussion regarding appropriate next steps.

Ultimately, Discovery Day serves as a thorough “final interview” for prospective franchisees. Every phase, topic, and conversation provides opportunities to gauge whether a candidate will be the right fit for your concept.

As detailed and dedicated franchise development specialists, FranSource has accompanied countless clients as they host Discovery Days with prospective franchisees. During these sessions, our team leverages more than 30 years of experience to provide observations and insights that help clients make informed decisions on whether they should grant the candidate a franchise in addition to helping clients learn how to identify the positive (and negative) qualities and traits on their own.

FranSource specializes in providing franchise development expertise at every level. Contact us today to learn about the value of Discovery Days and how you can better evaluate, qualify, and vet candidates for your concept.