The licensing partnership between franchisee and franchisor means a long-term commitment for both parties over years or even decades. In particular for the franchisee, who possibly works within the framework of a franchise concept for the very first time, it is important to realize the importance and necessary prerequisites of a productive franchise partnership before concluding the franchise agreement. That is why, Engel & Völkers summarizes the basic information for prospective franchisees, that should be considered in order to make your franchising investment a successful project, below. These references, based on recommendations from the International Franchise Association, are applicable beyond the real estate franchise and are designed to help franchisees across various sectors to make the right decisions on their way to the franchise partnership.
Your basics as a franchisee: what do you bring to the franchise partnership?
Before giving your franchise idea any deeper considerations, you should reflect on whether your personal qualities, abilities and living conditions are compatible with working as a franchisee.
In your new position as a franchisee, you have the responsibility to bring your franchise business on an economically successful course and to keep it there on your own responsibility. On the one hand, this requires skills such as leadership, risk management and stress resilience, and on the other hand it requires professional qualifications in the field of business administration. In addition, you benefit from industry-specific knowledge, which you can acquire either before the franchise partnership or through parallel training courses.
Give enough attention to the estimation of your time reserves in preparation for the franchise partnership. Working as a franchisee does not have a fixed working schedule: Conception, administration and control of the company require capacities that can go beyond working as a dependent employee - instead, you are rewarded with a high degree of self-organization and unlimited earning potential.