3 Reasons You Should Groom Your Employees Into Franchisees

3 Reasons You Should Groom Your Employees Into Franchisees



Growing your footprint is exciting, but sifting through multiple franchisee wannabes isn’t. You have your next location in mind, but no one seems to be right as the owner of the new store. Have you considered your employees for the task?

The annual PwC Franchise Sector Indicator survey found that the key growth challenge for franchisors is finding suitable franchisees. While this doesn’t indicate a lack of franchisees, it does signal the need for more innovative methods of acquiring the correct people to run their locations.

“Former employees actually make great business owners,” says franchise coach Rick Bisio of FranChoice.

“They know what it takes to operate a business from the inside and have already acquired many of the traits of a successful entrepreneur.”

You already know how much they know about franchising, but here are more reasons you may have struck franchisee gold with your players already working within your business:

Their core business skills are developed

Successful corporate employees know how to lead a team while also respecting the organisation they work for.

Related: 5 Strategies For Franchise Leadership Development

They have well-developed core business skills such as sales, marketing, finance, leadership and people management, says franchise coach with FranChoice, Rick Bisio.

“All of these skills are essential as a business owner, and corporate employees have already learnt many of them.”

The structure of a quality franchise system is better appreciated by former employees can who will know what it takes when it comes to making their franchise a success.

Their knowledge of your business is entrenched


Recognising strong players and being aware of those who constantly exceed their job expectations is key to scouting franchisee material within you organisation. Encourage these individuals by acknowledging their efforts and advancing their strengths.

“These people may offer opportunities for growth and expansion of a business,” says Brooke Wilson who was a customer service representative for Two Men and a Truck before buying her own franchise. “My industry training came from working within the franchise prior to becoming a franchisee.”

Encouraging the entrepreneurial spirit of others is the mark of a true entrepreneur. It’s an excellent way to inspire the success of their own business. Losing an employee in favour of gaining a franchisee is a small price to pay for another successful location on the map.

They’ve already proven themselves

The transition from employee to franchisee isn’t going to easy just because you have settled on someone from within the organisation. But the learning curve can prove beneficial for your business as a whole.

Related: The Youngest Body20 Franchise Owners Share Their Success Story

“Before a franchise agreement has even been signed, the franchisor has plenty of evidence how well the potential franchisee can follow the business’s best practice,” says Phil Harrison, national franchise manager at sustainable ventilation supplier EnviroVent.

“As a franchisor you know exactly what you’re getting so there are no nasty surprises.”

It is likely that employees being considered have been part of the franchise for a long time, and besides knowing the people, the product and the process, there is a pre-existing trust element, built up over many years.

Diana Albertyn
Diana completed a BA in Journalism in 2010 and has honed her skills as a newspaper reporter, senior communications specialist and most recently worked at a weekly magazine as a writer. She joined the EMTS Group in 2016 as a writer for Entrepreneur magazine and SmartCompany Networks. Passionate about honing her writing skills and delivering exceptional client results, Diana continues to keep a finger on the pulse of industry news and insights.