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3 qualities of successful franchisors

Having the right mindset will dictate whether you will become a success or a failure in franchising.
By Joselito G. Samson, CFE |

As a franchise consultant, I have met and talked to a lot of entrepreneurs who have varying thoughts about franchising and what it can do for their business. And for those whom I have seen succeed because they chose the franchising path, these are their characteristics which made them stand out:




1. Awareness of their strengths and weaknesses

These successful franchisors know and then acknowledge that, indeed, they have strengths and weaknesses. Fully knowing what their core competence is, they are open to delegating tasks in areas where they are weak.


Franchising to them is a unique industry that requires specific expertise to plan out and build the right organizational structures. At the outset, these entrepreneurs understand the value of getting things right.


Related: 3 lessons from next-generation franchises



2. Passion for teaching

Franchisors like to share their successes via teaching or mentoring their franchisees. This trait is critical to building a long-term and mutually satisfying franchisor-franchisee relationship that is based on trust, exchange of ideas, openness to suggestions, and, yes, replicating the successful business model.


More than the documents that bind franchisor to franchisee, a harmonious relationship will ensure a fruitful and profitable partnership, especially because franchisee suggestions and feedbacks, when coursed through the franchising system, are valuable listening posts for customer feedbacks and preference.



Related: Avoid these 3 pitfalls when investing in a franchise



3. Ability to see the big picture

One of the biggest mistaken notions that entrepreneurs have when embarking into franchising is thinking about the business as costing very little effort and money but returning huge paybacks.


On the contrary, franchising requires thorough study, needing, at the very least, a franchise business plan, franchise agreement, and a franchise operations manual. Setting up a franchise system is meticulous and will require additional investment. A potential franchisor must assess his current company structure, cost structures, operations, training capabilities, and supply chain to determine if it can handle additional operating units generated from selling franchises.


As for the “huge payback,” this will not be realized on the first, or even on the second, year of the franchise offering. During these times, you are still developing efficiencies as a franchisor, putting in place your franchise support systems, and are still learning the ropes of managing the system. What you will get during these stages of development is an increase in the number of your stores, as well as sales volume generated from newly-opened franchised units.



Franchisors should also give careful thought about selecting and awarding franchises. A franchise term usually lasts from three to eight years, so it is crucial that you get the right franchisee since they will be your partner in growth. Therefore, it is in your best interest to ensure that they too experience profitability and success. Eventually, they will be your best selling proposition.


Related: The 9 advantages of franchising


Franchising is an effective strategy for companies who are looking to expand their business. But having the right mindset as a franchisor will dictate whether you will be a success or a failure in franchising. An honest assessment of one’s mindset and objective will spell the difference between failure and success.


For more information on franchising, Francorp Philippines is organizing “How to Franchise Your Business” seminars for entrepreneurs on April 13 and May 18, 2016. For inquiries, please contact (+632) 638-3149, email info[at] or visit  




Lito is the associate vice president for consulting of Francorp Philippines. He has a 15-year training and experience covering McDonald’s, Carl’s Jr., Burger Machine, and Jollibee. He is a Certified Franchise Executive (CFE) and is a certified Serv Safe Executive.

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