First the news that some aspiring franchisees could be targeting the wrong sectors.
The latest FranchiseSales quarterly survey showed that while just 29% of franchise seekers would consider only a franchise business in which they have experience, 42% of franchisors say that experience in the sector is essential.
Only 7% believe it is unimportant.
So there’s a clear disparity between the expectations of franchisees and franchisors.
It seems that some franchisees could be considering opportunities they have little hope of buying, as franchisors are seeking candidates with more specific experience.
Drawback
Which is surprising, as franchisors always provide full training and often indicate that attitude and enthusiasm matter more than experience.
In fact, one franchisor told us that industry experience can actually be a drawback.
This might seem daft but there’s definitely some logic to it.
Changing someone’s habits is often easier than instilling new habits.
A new franchisee might find it difficult to change their approach after so many years of doing things in a certain way.
They might insist that their way works better and be reluctant to embrace the franchisor’s tried and tested system.
Someone new to the field, on the other hand, is a blank slate and will arguably be more receptive to instruction.
Despite these survey results, franchisors have generally led us to believe that experience still comes a distant second to having the right attitude and plenty of enthusiasm.
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The global survey of franchisors and franchisees also revealed that fast food was the most popular sector among franchise seekers.
34% of those surveyed are interested in the sector
This is unsurprising given fast-food businesses account for such a large proportion of franchise opportunities.
Fast food is ideally suited to the franchise model – easily scalable, easily replicated and with a relatively simple business model.
However, the fact that fast food is recession proof may well have influenced franchise seekers amid tough trading conditions.
As many high street retailers go to the wall the Subways and McDonald’s of this world are still thriving.
It’s little surprise when you consider that people seek affordable indulgence during tough times and fast food is often cheaper than cooking a meal at home.
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