How to Know If You’re a Good Franchisee (And How to Become One)

Best Franchisee Characteristics

At Bane Enterprises, we often talk about something we call the Connected Transaction®—essentially, the bond between two parties entering a commercial arrangement. When it comes to franchising, the human element is often the deciding factor in whether a franchise system succeeds or fails. Franchise recruiters spend a significant amount of time marketing franchises and selecting franchisees, but what makes a great franchisee? And how can you, as a prospective franchisee, make sure you’re making the right choice before signing the dotted line?

Let’s break it down and see what qualities make someone a successful franchisee and how you can ensure you’re in the right position for a thriving franchise journey.

So, What Are the Key Traits of a Successful Franchisee?

1. Understanding the Basics of Franchising

First things first—franchising is not for everyone, and certainly not for those looking to go off on their own and reinvent the wheel. Successful franchisees are typically described as “risk-averse entrepreneurs,” business-minded individuals who prefer structured systems with proven success. It’s all about following a well-established model and making it work, so if you’re someone who resists conforming to a set framework or dislikes taking direction, franchising might not be for you.

2. Aptitude & Attitude Matter More Than Experience

When looking for franchisees, recruiters assess both abilities and attitude—and often, the right attitude can be more important than specific skills or previous experience. While retail experience can be helpful, it’s not a dealbreaker. What truly matters is the ability to work with people and to align your values with the franchise’s mission.

At Bane Enterprises, we’ve learned that cultural fit is key to long-term success. Franchisees who share a similar mindset and approach to the business tend to perform better in the long run. If you’re a people person with a strong work ethic and a willingness to learn, you’re off to a great start.

3. Is Your Family on Board?

This one is crucial. Franchisees often underestimate how much support they’ll need from their families to succeed in business. Going into a franchise venture isn’t the same as traditional “steady employment,” and many franchisees face resistance from their families, especially if the decision involves significant financial risk or a big lifestyle change.

If you’re considering starting a franchise with a spouse or other family members involved, it’s essential to have separate and group discussions to ensure everyone’s on the same page. Strong family support can be the difference between long-term success and early struggles.

4. Assessing Financial Capacity

Before you dive in, you’ve got to take a hard look at your finances. Being financially underprepared is a common pitfall for new franchisees. At Bane Enterprises, we provide a range of funding and finance options through our Alliance Partners to help franchisees prepare for the financial demands of running a business.

Financial capacity isn’t just about having enough to get started—it’s also about weathering the lean periods that most franchises experience in the first few years. You’ll need to assess your financial situation and ensure you have the resources to cover both startup costs and ongoing expenses.

5. Be Ready for the Reality Check: It’s Not Always a Quick Profit

Many prospective franchisees walk into the game with unrealistic expectations about how much money they’ll make right out of the gate. Let’s be real: the first year is often about breaking even, and it could take a couple of years before you start seeing substantial profits. It’s essential to manage your expectations and focus on controlling costs and improving efficiency in the early stages.

6. Understanding the Risks

Franchising offers a much lower risk compared to starting a completely independent business, but that doesn’t mean it’s risk-free. Before committing, perform a full risk analysis and be clear on what risks you’re willing to accept. Understand that like any business, there are challenges, and the success of your franchise depends on your ability to adapt and navigate these hurdles.

Tips for Aspiring Franchisees

1. Do Your Homework: Research thoroughly before jumping in. Understand the franchisor’s business model, the competitive landscape, and where the franchise stands in the market.

2. Talk to Existing Franchisees: Speaking with current franchisees is one of the best ways to gain insight into the day-to-day realities of running the business. Ask them about their experiences and whether they’re happy with their decision.

3. Review Financials Carefully: Look at the franchisor’s disclosure document and financial history closely. Understand what the franchise will cost and the realistic income potential.

4. Ensure Cultural Fit: Make sure there’s a Connected Transaction® between you and the franchisor. A harmonious relationship built on shared values will help both parties thrive.

5. Assess Family Commitment: Before committing, ensure your family supports your decision. Franchise businesses require a lot of time and effort, and family backing is vital to your success.

6. Seek Professional Advice: Franchising can be complex, so having the right professional advice is essential. Enlist the help of accountants, lawyers, and franchise consultants to ensure you make the most informed decision.

At the end of the day, being a successful franchisee is about understanding the business, having the right mindset, and ensuring the support structures are in place. When you know what to look for and how to assess your own readiness, you’re setting yourself up for long-term success in the world of franchising. Ready to take the next step? Reach out to us at Bane Enterprises, and let’s have a chat about your potential franchise journey!

Bio - Barry Money, Founder - Bane Enterprises

For the first ten years of Barry’s career, he consulted in global franchise standards and led significant transformation and innovation projects.

Barry has diverse corporate experience across multiple disciplines including sales, marketing, customer service, product management, export, quality assurance, engineering, IT and supply chain with full accountability for P&L.

At the end of Barry’s corporate career, where he earned the nickname “Goliath Slayer,” Barry transitioned to the C-Suite. Barry Money is a graduate of the Australian Institute of Company Directors and a C-Suite professional, with an MBA in entrepreneurship.

Barry has held director, board member, CEO and leadership positions in start-ups, NFPs, Founder-operated entities, industry peak bodies and commercial organisations. 

He held a leadership role at Australia’s largest franchise group, where he was instrumental in driving disruption and growth.

Barry has worked in franchised industries, franchise consulting companies and some of the largest franchised brands globally.

After many years living and working all around the world, he is fluent in Japanese, French, German and conversant with several other languages.

A dynamic, results-driven leader who prides himself on lateral, entrepreneurial thinking and creativity, Barry is renowned for developing and fostering strong teams and a collegiate spirit.

Barry Money now heads up Australia’s ethical, efficient, effective, end-to-end choice for franchising solutions, Bane Enterprises.

Contact details

E: online@baneenterprises.com