What to look for when investing in a franchise, according to Maslow’s hierarchy

ActionCOACH UK co-founder Ian Christelow explains how you can spot franchise models that are endeavouring to satisfy franchisee’s human needs by building on Maslow’s hierarchy

When we invest in a franchise, what do we look for? Profit potential? Work-life balance? A supportive franchisor? 

What we are doing is scratching an ‘evolutionary’ itch to satisfy our basic human needs… even when choosing a business to invest in.

What is Maslow’s hierarchy of needs?

Abraham Maslow, an American psychologist, introduced his hierarchy of needs in 1943. It is a framework categorising human needs into five levels – often represented as a pyramid. 

With basic needs like food, water and shelter at the base, these must be fulfilled before focusing on higher needs such as safety, relationships, self-esteem and personal growth. Maslow believed as each level is met, we can move on to the next. 

But how does this relate to franchising? You’d be surprised… Maslow’s hierarchy of needs and the franchise model are incredibly in sync. Below is just a snapshot of what I mean:

1. Physiological

At the base of Maslow’s hierarchy are our most essential needs, such as food, water and warmth. In franchising, this translates to the need for certainty – through a proven business model, with lower risks than those associated with starting out independently, and the addition of potential support from high street banks. These are the key fundamentals any good franchise should deliver on. For instance, ActionCOACH offers a guarantee of a minimum £10,000 monthly income in your first seven months, ensuring a solid financial foundation from the start. 

2. Safety

The next need to satisfy is our safety, which includes our health, personal security and financial stability. A good franchise should provide a sense of safety by offering comprehensive training, a proven business model and ongoing support. This acts as a safety net, ensuring if you’re ever stuck or uncertain, the franchisor is always on hand to guide you. 

3. Love and belonging

Humans are social animals and connections are key. Being part of a franchise provides access to a network of fellow franchisees, ensuring you never feel isolated. A good franchise will offer constant opportunities to connect, both virtually and in person, fostering a sense of community, thus meeting the need for belonging. 

4. Esteem

The next level is esteem, which focuses on gaining respect and recognition from both yourself and from others. Franchisors should provide opportunities to be recognised for the work put in, commonly through hosting internal conferences and award ceremonies, celebrating the achievements of their franchisees. It’s a great way for franchise networks to acknowledge hard work, boost confidence and create a sense of pride within the franchisee community. 

5. Cognitive

The higher up the hierarchy we go, the less basic the needs become. Next, we have our cognitive needs – our need for creativity, curiosity and continuous learning. In franchising, there should always be opportunities for growth, with franchisors providing plenty of resources to keep you learning and developing. Running a business naturally brings new customers and fresh challenges, helping you grow along the way. At ActionCOACH, there’s a strong focus on continuous improvement, with constant access to expertise through numerous events, our podcast and industry experts. 

6. Aesthetic

This level relates to our desire for beauty and harmony in our surroundings – both in the physical sense and in the satisfaction we get from meaningful experiences. Franchising offers the opportunity to create this by building a legacy, whether it is through positively impacting your local community, creating connections through your business or expanding into multiple territories to spread your influence. It is all about avoiding the dull and monotonous and, instead, crafting something you can be proud of. 

7. Self-actualisation

The pinnacle of Maslow’s hierarchy, self-actualisation embodies our desire to achieve our fullest potential. By choosing a franchise aligning with your passions – whether it is fitness, education, food or something else – you have the chance to express yourself and make a meaningful contribution to society. This level is all about pursuing your goals, developing yourself and having the time to give back. 

Investing in a franchise is the perfect way to satisfy your human needs. By selecting a franchise that reflects your passions, you are embarking on a journey that positively impacts lives, including your own.