By: Mark Schnurman

Franchising is a great way to launch and build a business because it reduces risk and increases the opportunity for success. However, success in franchising is never guaranteed. Drawing from my industry experience and founder of The Perfect Franchise, a franchise consulting and brand matching firm, I have listed 10 traits that differentiate top from bottom performers.

Commitment to being a business owner: Some people choose the franchise path because their career has hit a ceiling or completely derailed. Devoid of job options, they look to franchise business ownership as a last result – a big mistake. Successful franchisees want to be business owners and challenge themselves. They want to take the risk, put in the hard work, and change their lives. They are committed to do anything to build their business.

Time to run the business: I speak to people all the time who want “passive” income. We all do, but the reality is that passive income is built, not bought. While a franchise can optimize your chances for success, it is up to you to run the business. You need to be able to commit time, even in semi-absentee franchise models. If you cannot do that, then franchising is not the right option for you at this time.

Financial ability to fund and run the business: Franchising requires a significant investment both up front and on an ongoing basis. Most franchisees do not turn cash flow positive for six to twelve months and, during that time, you need to be able to fund your life while keeping liquidity to make additional investments in staff, marketing, etc., if needed.

Leadership: Most franchises require building, motivating and managing a team. That requires strong leadership. Specifically, franchisees need to create the vision, culture and expectations for the team and personally live them. The franchise will have systems to help you manage the business, but the leadership skills come from you!

Ability to follow a process: Franchisors invest heavily in developing proven systems and processes that are designed to drive consistent results across locations. These systems are the backbone of the brand’s success and are built on years of experience, data, and refinement. If you’re not willing or able to follow the established model, then franchising simply isn’t the right path for you—period. Becoming a franchisee means committing to the playbook, not reinventing it. It’s all about a consistent service or product across the network system.

Ability to deal with ambiguity: When people transition from the corporate world to franchising, one of the biggest adjustments is the amount of responsibility that they take on. As a business owner, the buck, for everything, stops with you. That includes a lot of things you have absolutely no experience with. You’re the one making decisions, solving problems, and owning the outcomes. It can be overwhelming if you’re not ready for that level of responsibility.You need to be able to manage through those challenges and solve problems. Similarly, you need to be able to ask for help from the franchisor when you don’t know how to do something or are confused about how to handle a situation. You are paying royalties for support, so make sure you get the value of what you are paying for.

Quick decision making: Franchisees make a myriad of decisions each and every day. I strongly suggest making them quickly. Gather information, assess it and decide on how you want to proceed. Once you have the information, there is no reason to procrastinate. If you don’t make quick decisions, you will create a logjam that will hinder your business’s performance.

Success DNA: Successful people bring that same drive and discipline to franchising. They have the skillset and mindset to use their transferable skills in their own business. Winners keep score, and that is a great trait for franchisees.

Abundance mindset: People who approach life with an abundance mindset are great franchisees. They see competition as good and see opportunities broadly available. These individuals believe that there’s always room for improvement and success, not just for themselves but for everyone in their network. This mindset allows them to take risks, innovate, and stay resilient even when facing adversity, and view setbacks as temporary.

Resilience and Adaptability: Nothing about business ownership is easy, but everything is rewarding. You will face challenges – staffing, supply chain issues, or changing market conditions – but none of these are debilitating unless you let them be.  Strong franchisees stay calm and solution-oriented.

By developing these traits and being fully prepared to take on the responsibility of business ownership, franchisees can unlock their potential for success and build a thriving business. Franchising is a powerful tool, but it requires the right mind and skillset to make it work.