Personality Tests Are Key
Because franchising is such a structured activity, it's possible for personality tests such as this one to play a fairly important role in determining whether you're a good fit for a franchise.
In fact, one testing outfit TIMS Time Management Systems in Tucson, AZ is officially endorsed by the International Franchise Association to test franchisers to determine personality characteristics ideal for each organization, and to test prospective franchisees for suitability.
In their book, The Franchise Kit (New York: McGraw Hill, 1993), Kirk Shivell and Kent Banning discuss four aspects of personality often studied in matching people with franchise organizations: dominance, influence, steadiness and compliance.
A highly dominant person is more likely to succeed as a pure entrepreneur than as a franchisee, but a moderate amount of dominance is considered ideal for franchiseeism. People high in dominance tend to be difficult to please, easily frustrated and always ready for a new challenge. They're great completely on their own. Someone with moderate dominance will be more like the team player franchisee type.
"Franchisers want people who may be strong willed, but are also disposed to sacrifice some of their ego and play within the rules of the game," say Shivell and Banning.
Highly influential people star salespeople, for example would seem to natural franchise owners. Yet, franchisers aren't looking for pure salespeople and much prefers those who register only moderately in influence. The reason is that high influence people are often so focused on being charming that they overlook the hard realities of being in business.
"Often, they become trapped by their own trust and acceptance of people," say Shivell and Banning. "High influence people often need close supervision to meet their objectives" and, therefore, aren't always successful in the semi independent world of franchising.
You may think, then, that the ideal franchisee is a steady worker: a calm, easy going, dependable team player, right? Nope. Rather, successful franchisees tend to measure low in steadiness. Why would Steady Eddie be a drag as a franchisee? Because steadiness also breeds sensitivity, resistance to risk and change and an inability to make quick decisions. Thus, the preferred franchisee is someone who's not overly sensitive, but instead can take heat on the front line, is ready to respond rapidly to changing market conditions and opportunities and can solve problems quickly.
"Franchisers should be able to project the probable outcome of a certain course of action and have the will to follow a new course quickly," say Shivell and Banning. "High steadiness personalities are neither decision makers, planners nor moderate risk takers, yet all of these attributes are crucial to the success of a franchisee."
Finally, determine how you rate on the compliance scale your relative desire to avoid conflict (often through diplomacy and caution) and accommodate the wishes of others. Depending on the type of business, this is an important characteristic. In general, organizations that are highly structured, and especially those requiring franchisees to have strong technical skills, seek more accommodating franchisees.
"Sophisticated technical service franchises (quick print shops, computer and medical service businesses) tend to prefer higher compliance scores than those involved in retailing," say Shivell and Banning. High compliance types are valued for their attention to detail and problem solving skills, and they're also diplomatic. However, they can be slow decision makers. Some franchisers want people like this, who aren't likely to buck the system, while others want franchisees that are more creative and assertive.
Hey, I'm the Type!
Suppose, after taking one or more of these personality tests, you fit the mold for at least one category or style of franchising (or, you've decided to disregard such frivolous distractions and plow ahead). What next? Well, there are financial, attitude and experience questions to address.
How's your financial health? Much like lenders, most reputable franchisers want to know your credit history, current obligations and resources. Then they'll decide whether you're a reasonable risk, comparing your current standing and history with the size of the investment required. If it's $5000, this should be no big deal, but the difficulty of qualifying will rise proportionally for buy in fees in the tens (or hundreds) of thousands.
Don't give up simply because you lack financial resources, however. Real strength in other areas can make this the least important factor in qualifying.
Attitude will be reflected through applications and interviews. Franchisers will also draw conclusions about your attitude toward business responsibilities through your personal credit history. Your level of commitment should be obvious to all involved.
Perhaps trickiest is a judgment about your business skills, or potential for developing them. Having experience in some customer service capacity is virtually required. But beyond that, it's open to opportunities for you to draw a connection between your experience and what the franchise is all about. In this regard, don't make too many assumptions.
"While you may have considerable experience in management, it may be of a type that isn't applicable to franchising," say Shivell and Banning. "Experience gained as a large company executive may be considered irrelevant, or even detrimental." At the same time, it may be worth bringing into the conversation your childhood memory of the day that was so hot you opened multiple lemonade stands near entrances to the city park.
Any life experience that bears on what you're about to do next is worth looking at for clues on what your enterprise will look like, and whether or not it'll succeed. Make enough positive connections and you've made a case for the opportunity to run a successful franchise.
Still in the running? If so, then you're ready to consider the four step process of selecting a franchise company, as outlined by Sandra L. Oluwek, a Hoboken, NJ, consultant who helps entrepreneurs start businesses through network marketing and franchising.
