How To Successfully Transition From Employee to Franchise Owner

Transitioning from an employee to a franchisee can allow you more freedom and an opportunity to grow your wealth. Here are five steps to ensure the process goes smoothly.

By Erica InmanStaff Writer

8:08AM • 05/09/24

Leaving a stable position as an employee and taking the leap into franchising can be intimidating. However, by choosing the right brand, leaning on your transferable skills and building a support system, you can make the transition with confidence.

1851 Franchise spoke with Jake Pinion, franchise marketing coach at HorsePower Brands, to learn more about what it takes to successfully transition from employee to franchisee.

Choose the Right Franchise

With support from the right franchise, your transition will be a lot smoother. Take care to choose a brand that fits your needs. Scrutinize the support, training and resources offered by the corporate team and decide if there’s enough on offer for you to confidently move forward.

“When considering the transition, it's important to choose the right brand that aligns with your values and offers a ton of support,” Pinion said. “I would say for anyone interested in franchising, you should do a lot of research and look for brands with a strong or growing reputation, a proven track record of success, good customer reviews and hands-on training and support from the franchisor.”

Evaluate the experience of existing franchisees with the brand, as well; have they been able to grow and are they satisfied with their relationship with the franchisor?

Make sure your values align with those of the brand before you enter the long term partnership. It will be much more motivating if you can get behind the concept and feel good about your business’ goals and mission.

Explore Transferable Skills

Regardless of what your role was before becoming a business owner, you will have established some useful skills. Consider which of these skills are most transferable to your new role as a franchisee and lean into those throughout your transition.

“From customer service to ops management, these skills can help to form a solid foundation for running a successful franchise,” Pinion said.

And just remember, whichever skills you do not have already are ones you can learn and develop as you go.

Follow the Established System

The benefit of franchising is in the proven business model, so be sure to actually follow that model to get the desired results. Now is not the time to be creative and think outside the box; instead, pay attention to the details and follow instructions carefully. Stick to the tried-and-true methods the brand prescribed and you will reap the benefits.

Foster Collaboration

We all experience imposter syndrome. Knowing you’re not alone in that feeling can help you overcome self-doubt. Build yourself a community that will support you through your transition. You can do this by offering to collaborate with fellow franchisees, sharing best practices and supporting each other's growth, for example.

“Additionally, seeking support from already established franchisees can provide insights and strategies tailored to the specific needs of the industry,” Pinion said.

Another option includes joining existing franchise communities such as those within the International Franchise Association (IFA).

Ensure Financial Stability

The transition from employee to franchise owner is not only a change in mindset; it’s also a huge financial investment and, frankly, a bit of a risk. Ensure you are financially prepared by reviewing the brand’s Franchise Disclosure Document (FDD) carefully so that you understand all of the costs involved and make sure you’re keenly aware of your own financial situation.

A Smooth Transition Is Possible

Choosing the right franchise sets the tone for your franchising journey, while utilizing transferable skills, following instructions and collaborating with others will empower you to thrive in your new role. By using these five tips, you can confidently tackle your transition to being a business owner. While the journey into business ownership may not always be easy, it is possible and worthwhile to persevere.

“It's challenging and things can knock you back,” Pinion said. “It's important to roll with changing markets, industry trends and what customers want, so keep an open mind for new ideas and opportunities.”

Check out these additional resources for first time franchisees: