WHO IS THE IDEAL FRANCHISEE?

by Ken Hollowell - Mr. Hollowell is one of the nation's leading franchise developers and consultants.

The success of franchising partly depends on the selection franchisors make of their franchisees. Nearly all franchisors have a specific profile of who they are looking for to be part of their franchise network and system. However, there are general profiles that need to be evaluated.

The Age
The general age range for a potential franchisee is between 35 and 55 years of age. That is not to say a younger or older person could not qualify for a franchise but generally speaking the average franchisee is in his early 40’s. Franchisors are careful when it comes to lack of life experiences which can be found in younger individuals. With older individuals, the franchisor is careful because of health reasons and energy that older individuals may lack.

The Background
Franchisees come from all walks of life. Depending on the specific franchise business and the profile of the franchisor will often depend on the background of the franchisee. The average potential franchisee is coming from corporate America from middle to upper management. Because of the stress, uncertainty of their career, and possibly no potentials of advancement, the potential franchisee is ready to go out on his own.

Male
Although in recent years more and more females are buying franchises, the male is still the majority when it comes to a franchise. As more franchises are developed with women in mind the tide will turn.

Financial Ability
The average franchisee will only have a portion of what it takes to purchase the franchise and will require some assistance in financing the franchise business. This will be a challenge for each franchisor unless they have already acquired the assistance and cooperation of funding companies. The easiest funding is equipment packages. Also the SBA is a preferred way to fund a franchise business.

Education
The potential franchisee has attended either a Junior College or graduated from a College or University. Teachers are among one of the professions that seem to lean towards a franchise business in their later years.

Martial Status
The potential franchisee is usually married with 2 children. One of the motivating factors of buying a franchise is the future education of the children and advancing in the lifestyle desired of the family.