7 Signs You Are Suited to Being a Franchisee NZ

Summarise with: ChatGPT Perplexity Microsoft Copilot

---

Table of Contents

• 1. You Can Follow Instructions
• 2. You Are Reliable
• 3. You Have Strong Leadership Skills
• 4. You Have Excellent Communication Skills
• 5. You Are Financially Aware
• 6. You Know When to Ask For Help
• 7. You Are Open to Feedback 
• Key Takeaways 
• Frequently Asked Questions

If you want to open or buy a business in New Zealand, consider buying a franchise. Franchising is a great way to buy into an already established network of similar businesses, bringing a customer base that is already familiar with the brand, goods or services. Although there are practical steps to knowing if you are eligible to be a franchisee (such as meeting the financial requirements), you must consider whether you have the abilities of a good franchisee. This article will take you through seven signs you are suited to being a franchisee.

1. You Can Follow Instructions

One of the first signs you are suited to being a franchisee is if you are good at following instructions. When buying a franchise, you must use the franchisors: 

• proven business systems;
• operations; and 
• brand. 

As such, although you may want to do things differently from what has been established, you should not assume that your way is better than a system refined through significant trial and error. If you like to design such systems yourself or are adamant about doing things your way, then buying a franchise might not be for you. 

2. You Are Reliable

Another key trait of a good franchisee is reliability. Franchisors have worked hard to develop their operations and brand into something franchisees can replicate on a scale. This includes considerable time and financial investment. As such, you must be willing to respect this and be dedicated. In addition, you should be able to operate your franchise independently in such a way that will not harm the broader franchise network or require excessive ongoing support from the franchisor. 

3. You Have Strong Leadership Skills

Franchisees are their own boss running their own business. Although the franchisor limits some operations through the franchise agreement and operations manual, franchisees are still required to lead and manage their staff. When looking for prospective franchisees, franchisors want to ensure they find candidates who are good at dealing with and managing people.

4. You Have Excellent Communication Skills

Having excellent communication skills is a requirement for all franchisees. Strong communication skills include the ability to actively communicate with:

• customers;
• staff; and
• the franchisor. 

Good communication builds trust and loyalty with your staff and customers, which is critical for the longevity of your business. In addition, you should feel comfortable passing on feedback to the franchisor when necessary to ensure the franchise can constantly improve.

5. You Are Financially Aware

The costs of buying a franchise vary. Regardless of how much you pay, you need to have a certain degree of financial awareness as a franchisee. Like all business owners, you must ensure you have the money to establish your franchise and support yourself until your franchise can profit. Once things are up and running, you will need to be vigilant to keep on top of your income and expenditure to ensure you are constantly growing. 

6. You Know When to Ask For Help

A good franchisee knows when and is willing to ask for help. Accordingly, a good franchisee will contact the franchisor for help when necessary. This ensures the business continues to operate smoothly and reduces the chances of problems or tension building up over time. When you buy a franchise, you also get access to the franchisor’s support, so you should utilise this as much as possible.

7. You Are Open to Feedback 

Finally, as a franchisee, you must be open to feedback. Being a franchisee may not be the right path for you if you are not receptive to constructive criticism.

Although you will work relatively independently and are your own boss, you still need to take on feedback from your franchisor. This includes feedback about how to improve systems, so your business is successful.

Franchisor Toolkit New Zealand

This publication provides you with the fundamentals for franchising your New Zealand business, including set up, branding and management.

Download Now

Key Takeaways 

If you are looking to open or buy a business in New Zealand, buying a franchise may be a great choice. However, before doing so, ensure that you are suited to being a franchisee.  Some key signs that you will succeed as a franchisee include whether you:

• can follow instructions;
• demonstrate reliability;
• have strong leadership skills;
• have excellent communication skills;
• have strong financial acumen;
• know when to ask for help; and
• are open to feedback. 

If you need assistance deciding if you should purchase a franchise, our experienced franchise lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0800 005 570 or visit our membership page.

Frequently Asked Questions