Franchise Development Prospects Share Their Perceived Strengths
By: Michael Alston for Franchise Insights
November 13, 2024 — Almost 57% of franchise prospects in recent surveys attested to their “willingness to follow a proven system”, an essential ingredient for succeeding at franchise ownership. Grit, or “persistence towards a goal despite obstacles” was cited by over half (53.2%) of respondents, followed by “team leadership experience” at almost 40%.
It would not be unusual to find these traits in aspiring franchisees, given that the vast majority of today’s would-be franchise owners are near prime entrepreneurial age and are leaving full-time jobs according to recent aspiring franchise owner demographics from the monthly small business startup sentiment surveys.
Survey respondents were invited to select only three of the seven factors provided, or to provide an “other” response, so the above are what they deem their most valuable attributes for franchise ownership.
Willingness to follow a proven system, “grit” and team leadership experience are most cited by franchise seekers.
Grit was coined to mean “perseverance and passion for long-term goals” by psychologist Angela Duckworth and colleagues in a 2014 study of the predictors of success. In this pivotal work, the authors found that traditional predictors like intelligence (as measured by standardized tests like IQ) and talent — possession of extraordinary abilities — were secondary to what they came to define as grit. If not previously exposed to these research findings, you might enjoy this six-minute TED talk by the author whose video has been viewed over 15 million times.
Grit may be a necessary trait, but it is not sufficient for the successful operation of a franchise. The willingness of franchisees to follow a proven system is a known success factor, and the belief among today’s prospective owners that they possess that characteristic bodes well for the coming generation of franchisees.
Many franchises require team leadership skills, which were reported by 39.8% of respondents. Over 35% of respondents cited a supportive partner or spouse, and access to sufficient startup capital was reported by 33.3%. Over 28% have experience in the business segment they are pursuing for a franchise.
Another 24% of respondents to this question included prior business ownership among their top three strengths. Further, data from over five years of surveying aspiring franchise owners shows that about 15-20% already own at least one business.
In the most recent surveys, 24% of respondents included prior business ownership among their top three strengths, consistent with the 15-20% who currently own a business.
An “other” category garnered some valuable other traits that we may include in future rounds of the survey. “Drive and desire for ownership”, “35 years of store ownership”, and “prior sales and marketing skills” are a few examples.
The Small Business Startup Sentiment Index™ is based on a monthly survey of individuals who have recently inquired about businesses or franchises for sale on the Franchise Ventures lead generation platform. Data for this article was collected September-October, 2024.
Franchise Ventures is the leading franchise lead-generation platform for potential franchisees to thousands of growing franchise systems in the United States and Canada. Its franchise lead generation brands include Franchise.com, Franchise Solutions, Franchise Gator, Franchise Opportunities, Franchise For Sale, SmallBusinessStartup.com and BusinessBroker.net, and together they provide the largest aggregation of prospective franchise buyers in the U.S.
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Published on Wednesday, November 13th, 2024.