During this week’s Proven Match blog, we’re going to investigate why former employees for an organization often end up as productive franchisees in the system. While this point seems a little obvious, it’s an encouraging look at how an employee can successfully transition into following their entrepreneurial dreams. In essence, that’s what franchising is all about.
Employees who spend years with an organization tend to obtain an innate understanding of what makes the business thrive. Doesn’t matter if they’re in accounting, sales or customer service. They’re gaining intimate knowledge of the profitability factor—what every business must attain in order to survive. Best of all, these employees have basically been granted a front-row seat. Employees who are fully engaged, love their job and openly participate in the unique corporate culture will make the best candidates for future franchisees.
Those destined to take charge of their own future often find that the seeds were planted well in the past. Employees who become franchisees were often at the forefront of innovation for their respective companies. They’re more likely to seek out inefficiencies, find solutions, streamline operations and increase profitability. Then came the pivotal moment when they came to think, “I can do this on my own!” And good franchisors are often on the lookout for top talent. They may even have a feeder program or openly suggest the employee begin as a franchisee in the system.
Other factors that make employees into franchisees is the management touch. If you’re fortunate, you’ve experienced it in your own career. It’s a combination of balancing good employee management while encouraging a stellar business culture. Those who have worked within a franchisor system understand the value of having proven processes, standard operating procedures, and a satisfied workforce. And they’re likely to implement carbon copies of these values with their own franchise endeavors.
Many established franchisors have taken note of the employee-to-owner pipeline and created proprietary programs designed to facilitate a smooth transition. Noted franchisor brand owners The Dwyer Group implemented a program in which employees can become vested on their own path to franchise ownership. Internally tabbed as the H.I.R.E. program, it stands for “Hiring Individuals, Recruiting Entrepreneurs.” The key component of the H.I.R.E. program allocates an elevated discount on buying a franchise based on the number of years an employee is with the company. And it’s augmented, meaning the more years an employee is a part of the company, the bigger the discount when said employee is ready to buy a franchise of their own.
If you’re fortunate enough to work for an organization that has a valid and viable franchise operation, you too can follow the pathway from employee to franchise owner. As the International Franchise Association advises, there are four key tips for interested parties:
• Get to know the business inside-out. Having an innate understanding of all internal roles and responsibilities
• Put money aside for a future down payment
• Seek other investors-- business partners, co-workers or friends. You can marshal your combined resources and spread out the financial risk
• Let company owners assist your entrepreneurial dreams by asking for guidance
There are many ways to become a successful franchisee. Taking those first steps on the pathway to owning a future of your own can be a daunting task, but if you’re fortunate enough to work for a company that already represents a franchise operation, you may just have a true leg up on the competition.
As a franchisor, you’ll want to know which existing and potential franchisees best fit your business concept. Proven Match is the proven solution in determining those factors. Through our proven behavioral assessment techniques, predictive analysis becomes a predictive success for your franchise concept. If you’re ready to show your leadership by getting started, give us a call and we’ll put you on the path to a more productive year in 2017.