The Ideal Franchisee - The Franchisee Point of View
Franchisees are required to put in tremendous effort to launch their business and must work extremely hard at their capacity. However, simply working hard does not guarantee success in the franchising business. There are certain other traits, which must be present within a person for them to consider becoming a franchisee.
Possessing an entrepreneurial mindset is a plus but one should also have the employee mindset as well. This lies in the fact that even though the franchisee must have the steely determination and drive to launch a business, they must be willing to be restrained and follow the directions of the franchisor. The level of control for a franchisee is noticeably less than of that of being an owner of your own independent business. However the level of risk presented to a franchisee is less than that of an independent business owner. Therefore this type of business is preferable for those looking for less risk. If we were to prepare a checklist of the traits, which were to be present within the ideal franchisee, it would appear something as:
- Willing and able to work within the structure of a franchise system
- Possesses enough capital to not rely on initial returns to support self
- Able to work long hours at work
- Can work without supervision and often support staff
- Is not scared of financial risk
- Has a supporting spouse and family
- Has exceptional time-management skills and can multi-task
- Is a Determined worker
These are a few of the traits, which are more important but should not be taken to be the only indicators of being a successful franchisee. A franchisee must have the ability to assign responsibilities, have a crisp and quick mind to identify the best opportunities, should be willing to accept advice from others and should have strong interpersonal skills to interact with the customers and management at the franchisor headquarters.
If, as a franchisee, you feel you do not possess these qualities and that you are weak in any of these then it is best that you either work in improving your skills or else choose some other line of work. Failure is never an option when launching a business and you start up with the intention of staying in the long run. So it is best to know one’s own strengths and weaknesses before starting a business venture rather than learn along the way.
Quantifying Yelp's Impact on the Restaurant Industry
Luca studied the effects of Yelp ratings on the revenue of restaurants and discovered several interesting findings. Studying the relationships of restaurants' revenues to their Yelp reviews in Seattle over a period from 2003 to 2009, he found a significant relationship between a restaurant’s average rating and revenue. One star’s worth of improvement on Yelp leads, he found, on average to an increase of between 5 and 9 percent in revenue. The average rating is more important than the review, as many Yelp users are overwhelmed by the sheer number of reviews on manyrestaurantpages and find it easier to consult the star rating. Luca also found two features which exacerbate the effect on revenue Yelp has. First, the more reviews a restaurant has, the more impact an increase in its Yelp rating will have on its revenue. Second, the more reviews by Yelp “elite” members, the more impact; “elite” reviews have almost twice as much impact as other reviews.
But she's doing it: Can franchisors treat franchisees differently?
So, what do you do, then, when your fellow franchisees start using rougher towels, or take the milkshake off of the menu? Now all of a sudden some of the inherent value in your franchise is gone. Your hotel chain is seen as declining in value, and out-of-towners stay away because they think that you, too, have taken their favorite milkshake off of the menu.
From Enlisted to Entrepreneur: Veterans Receive Franchise Discounts Nov. 11
On November 11th, we not only honor those who’ve fought for our country, but recognize the 4.7 percent of veterans who have contributed their blood, sweat and tears and are continuously fighting this constant battle we call “unemployment.” In honor of Veterans Day, various franchises across the country have taken the approach to thank our veterans and active military by offering phenomenal franchise discounts (some even all year round)!