4 Essential Qualities That Propel Franchise Owners to Success

From adaptability to financial stability, here are the essential qualities for franchise owners that will ultimately contribute to their success.

By Erica InmanStaff Writer

8:08AM • 02/10/24

In the world of franchise ownership, success is not just about financial prowess; it's a delicate interplay of various qualities and characteristics. Lori Merrall, vice president of franchise sales for Woodhouse Spa and Sola Salons, has been working in the franchise industry for over 17 years. Recently, 1851 Franchise spoke with Merrall to gain her insights on the qualities possessed by most successful franchise owners.

According to Merral, “Effective franchise ownership requires a combination of key qualities and characteristics. Among these, adaptability, the ability to follow a system and strong leadership skills stand out as essential components for success in managing a franchise.”

Adaptability

The first quality, adaptability, is like a compass guiding franchisees through the ever-changing business environment. In the context of Sola Salons, a salon franchise concept with minimal staff that is susceptible to changing industry trends, adaptability becomes particularly crucial. The ability to pivot in response to industry trends and customer preferences ensures that the franchise remains relevant and resilient.

How does someone become adaptable? Merrall believes this trait is developed through life experiences that simply require it.

“Life experiences that emphasize adaptability, effective communication and problem-solving contribute to a franchise owner's ability to navigate challenges,” she said.

A franchisee who has had to face unexpected difficulties may be well-suited for business ownership. Merrall suggested that resilience and effective problem-solving skills also come in handy for entrepreneurs.

Ability to Follow a System

An equally vital quality is being able to follow a system. Many brands place emphasis on a turnkey model for franchisees, and the success of this model hinges on franchise owners adhering to the established framework. While franchisees often look at a brand’s success in terms of growth, these indicators typically reflect the success of those following the given model. If a franchisee departs from these instructions, the odds of success are likely to diminish.

“Successful franchise owners typically have a strong work ethic and entrepreneurial spirit alongside prioritization of communication and organization,” explained Merrall. “Detail-oriented management is paramount, ensuring adherence to franchise standards and system compliance across all facets of the business, from financial management to day-to-day operations.”

Someone who recognizes that the devil is in the details will be more likely to closely follow the given recipe for success. This structured approach ensures consistency across the franchise network, fostering brand integrity, leading to customer trust and franchisee success.

Collaboration

A franchisee's journey doesn't solely rely on individual traits. Teamwork and collaboration are indispensable characteristics that align with the franchise space.

"Collaborating with fellow franchisees is also a key habit that leads to success in franchise ownership," said Merrall. “By fostering a culture of collaboration, franchise owners can share best practices, leverage collective expertise, and support each other's growth and success within the community. This collaborative environment also enhances networking opportunities and strengthens the overall franchise ecosystem.”

Financial Stability

While there are a range of personal qualities and habits that contribute to a business owner’s level of achievement, financial acumen cannot be overlooked. To invest in a franchise, a franchisee must have the funds available or the ability to prove financial trustworthiness to secure funding. Once the business is established, it can only succeed with proper financial management.

“A strong understanding of budgeting and financial management are fundamental for navigating the business's economic aspects,” said Merrall.

Merrall also noted that work experience, especially experience in a management role, also tends to make a career transition into franchising run a little more smoothly.

In the dynamic world of franchise ownership, there are a diverse range of qualities that contribute to success. Between adaptability, collaboration, attention to detail and financial acumen, a blend of these qualities will build a solid foundation for franchisees to thrive in their business ownership experiences.

To learn more about effective franchise ownership, check out these resources: