Franchising can be a lucrative venture, especially when compared to starting a business from scratch. According to the International Franchise Association, franchises have a higher rate of success than start-up businesses, with fewer than 5% closing due to failure within the first 5 years. This contrasts sharply with the Small Business Administration’s report that about 50% of all new businesses do not survive past the fifth year. This stability is often attributed to the tried-and-tested business models provided by franchisors.

Key Traits of a Successful Franchisee
Self-Starter Yet System-Follower

The paradox of needing to be both a self-starter and a strict follower of the existing system is central to franchise success. Franchisees must be proactive and adaptable, yet disciplined enough to adhere to the franchisor’s established methods. This balance ensures efficiency and compliance, which are crucial for leveraging the brand’s proven success formula.
Financial Readiness

Starting a franchise requires substantial financial investment. Initial fees can range from under $10,000 to over $100,000, with the average cost hovering around $35,000, according to Franchise Direct. These fees often cover training, support, and sometimes a degree of marketing. Ongoing costs include royalties, which are typically a percentage of gross income. Prospective franchisees must have access to capital either through personal funds, loans, or franchisor financing programs.

By Haadi