Investing in a Master Franchise program takes more than money – it takes the right mindset. And when it comes to connecting the right prospects to Mint Condition’s Master Franchise program, it’s important to note that our franchise program is not the typical franchise program. Therefore, the right person for the role is not your typical individual either. The individuals who are successful in our Master Franchise program are entrepreneurs at heart, who have built and developed teams and who have the patience for delayed success – because they understand the journey it will take to get there.
The Entrepreneurial Mindset
There are major differences between the entrepreneur and a businessperson, and while these terms may be used interchangeably in casual conversation, they are in fact a key differentiator in the type of person who will be successful in a Master Franchise program. Someone who has worked almost exclusively in an established organization, even at the executive level, does not have the same mindset as someone who has started their own business. Although later down the line, they may share many of the same day to day tasks (such as understanding financial projections, building a team, etc.), it is their mindset that sets them apart. Much of that has to do with the environment in which a businessperson vs. an entrepreneur operates.
The “Established Business” Environment: Executives in an established business are typically working within industries that have a set of best practices and an understood market already in place. With much already known, they can focus on executing and optimizing processes to grow the business and reach the organization’s goals.
The Entrepreneurial Environment: Entrepreneurs are often seen as visionaries who build their ideas from the ground up, writing (and re-writing) the playbook as they go. Without an established framework behind them, entrepreneurs tend to thrive on taking risks, which is a key characteristic that other business executives may lack.
A Risk-Tolerant Appetite
While an entrepreneur may be more comfortable and willing to act on risks, simply taking risks in and of itself is not a qualifier for being a successful Master Franchise owner. Risks may not always have an upside, and there needs to be strategic understanding and knowledge behind the decisions that an entrepreneur makes. Successful entrepreneurs possess a growth mindset no matter what. Even failures are an opportunity to learn and improve. Furthermore, successful entrepreneurs don’t tie their identity to the “wins” or “losses” and they don’t hang their hats on either of those terms. As Thomas Edison famously said, “I have not failed. I’ve just found 10,000 ways that won’t work.” For Master Franchise owners, while they will have many benefits and support, including working directly with our Founder, they are still building a startup in a new territory with the potential for unknown risks and hurdles. Without an appetite to manage some risk, they won’t see the full success possible.
The Assets to Invest
Of course, one of the most tangible risks of starting a franchise is the financial investment. The person who works as a Master Franchise, like many startup entrepreneurs, will need to A) have the ability to invest in their franchise and B) be comfortable not taking a salary for the first year or so. Although the exact dollar amount varies on the territory or region of the country, typically, we see the most successful individuals as a Master Franchisee with liquid assets between $250K-$500K and a net worth between $1.5M – $3M. This affords them the money to buy into the franchise as well as support them as they weather the first year.*
The Achievers Profile
For brokers who are familiar with the Zorackle profile, our most successful Master
Franchise owners fall in the Achievercategory. In a nutshell, the achiever has opinions, wants to inform change and values growth, success, efficiency and – you guessed it – achieving. Achievers thrive on “being the boss” and often seek out opportunities where they can run their own businesses. Enter: our Master Franchise model. Achieves work well within this scalable model as well as having the opportunity to work independently. Furthermore, our business model, once successful, allows owners to take a more passive role, while still maintaining control over the growth and long-term development of their franchise. This often translates to generational or legacy wealth that they can share with their families in the future. For many Achievers, and similar personality types, this is a win-win.
Understanding Their Role
While some people may not think of “janitorial services” as an industry they want to work and build a business, it’s important to differentiate that our Master Franchise program does not manage clients for a cleaning service. That’s the role of the Unit Franchisees. Our Master Franchisee builds and mentors the unit franchisees. You can see the hierarchy in the below image.
The question we ask any of our Master Franchisees is, “Do you want to help build other businesses?” Because that is – at the core – what they are doing. Our Unit Franchisees are handling the cleaning clients within a territory, while the Master Franchise provides overarching marketing and operational support. This is when the skills of building and developing a team are especially important for a Master Franchisee. They should like and be successful working with others.
The Right Candidate
While there is no silver bullet in terms of the right candidate for our Master Franchise program, the following checklist may help you narrow down on a potential prospect:
- Entrepreneurial experience or mindset
- A willingness to manage some risk
- Liquid assets above $250K
- Net worth above $1.5M
- Ranks as an Achiever on the Zorackle Profile
- Understanding of the Master Franchise role
Much like running a new department, or starting a small business, the Master Franchise needs to have a toolbelt of skills that will help them remain flexible to the tasks required to be successful as well as the grit and know how to make adjustments when necessary in order to meet their goals. And, at the end of the day, they require the intangible characteristic that all entrepreneurs – and many business owners – share: faith. Faith that the time and money they invest into a project will prove fruitful and faith that they are taking a step in the right direction for their long-term success.
If you feel you have a possible candidate for us to speak with, or if you have any questions for us, please reach out. We’re always happy to discuss the benefits of our Master Franchise program and the individuals who would be right for the role. Contact our Director of Master Franchise Development, Randy Abernathy at randya@mintconitioninc.com or 916-337-3532.
* Unfortunately, SBA loans cannot be used in the investment of a Master Franchise. This type of business is considered passive income and therefore does not qualify.