Franchisee Requirements: 6 Criteria Every Potential Owner Should Meet

Do you want to own a business? Franchising offers a proven business model with a recognized brand to help you stand out from the competition. Learn more about standard franchisee requirements and what criteria you need to meet to become a franchise owner.

A survey conducted by GoBankingRates revealed 42% of people have considered being entrepreneurs. And while there are 33 million small businesses in the U.S., many people never make the move from Corporate to Main Street.

If you want to make your entrepreneurial dreams come true, franchising can be a stepping stone to building a successful business. As a franchisee, you’ll get a brand with an existing customer base, training, and ongoing support to increase your chances of success. You’ll also gain access to a franchise system — peers who can share best practices to help you build a profitable venture.

Can I Be a Franchisee?

To become a franchise owner, you’ll have to meet requirements outlined by the franchisor, which can vary depending on the brand and the level of investment. In general, here are the franchisee requirements you need to get started:

1. Net worth and liquid capital: A potential franchise owner needs to have a certain net worth and liquid capital for the long-term success and viability of a business. Meeting these requirements enables franchisees to have working capital while they build their businesses, and ensures they have the borrowing power required to qualify for a small business loan. Bath Tune-Up requires its franchisees to have a net worth of $200,000 and liquidity of approximately $68,000 to qualify.
2. Borrowing power: Having access to capital and the ability to secure financing is crucial during the early stages of your business. Unlike a corporate job, a new business takes time to ramp up. There are a variety of sources you can turn to for a loan. You can get a traditional bank loan, home equity loan, or franchise-specific loans from the U.S. Small Business Administration. They guarantee loans, making them less risky for lenders, and the loans often have lower interest rates and longer repayment periods. Many franchisors also offer financing to make the business more attainable. Bath Tune-Up offers $36,000 in financing to qualified candidates.
3. Business acumen: Franchisees need to understand basic business principles, such as marketing, sales, and management, even if they are not experts in the industry. People who have experience managing teams or leading projects already have the transferable skills they need to succeed at business ownership.
4. Ability to follow a system: One of the hallmarks of a franchise is the operational playbook. The franchisor has established guidelines to follow. You won’t have the creative freedom to improvise, but it eliminates much of the guesswork involved with opening a business.
5. Strong work ethic: Starting a business is incredibly rewarding, but it requires hard work. Despite long hours pounding the pavement, most franchisees are happy they started a business. At least 70% of franchisees are happy they decided to launch a business, according to Guidant Financial.
6. Networking expertise: Customer service is a big part of business ownership. You’ll need to network and market your business to build a loyal customer following. Taking time to build a positive network, particularly with existing franchise owners, can enhance your business and help prevent setbacks.

Remodel Your Future with Bath Tune-Up

If your skillset matches the criteria for franchise ownership, Bath Tune-Up can help you start the franchise process and remodel your future as a small business owner. Bath Tune-Up was started in 2020 after customers of its sister brand, Kitchen Tune-Up, were so pleased with the successful revamps of their kitchens, that they asked us to remodel their bathrooms, as well. We’re a one-stop shop for bathroom remodeling and we rely on curated designs to help streamline the process for our customers.

Inquire now to learn more about how Bath Tune-Up can help you achieve your entrepreneurial vision.