Are franchises "bought", "sold" or "awarded"? Is the franchisor's representative in the "franchise development" department or "franchise sales" department? This may seem like semantics but it is at the essence of what a successful franchise relationship is all about.
If you "buy" a franchise it would imply that you have control over the process, much the same as if you were buying broccoli at the grocery store. You simply appraise the various franchises that are available then walk up to the cash register and "buy" the franchise.
If a franchisor "sells" you a franchise it may bring to mind dealings you might have had at a used car lot. You would face a heavy handed sales person whose goal is to 'close' the deal knowing, of course, that they will never see you again.
The good news is that you should have neither experience in today's franchising world. Today, high quality franchisors focus on "awarding" franchises to the best candidate. The franchise development person's job is to discover a partner for the franchisor - someone who shows potential to be successful in that particular franchise system.
The term "awarding" came into widespread use in the 1980s. It reflected franchisors' collective realization that it was in their best interest to work with quality franchisees who would present assets to the brand.
This is a logical change from the early days of franchising. When franchising was young, many franchisors thought that if they provided a successful model and adequate training, anyone could succeed. While the model and training are decisive, the other key ingredient is the franchisee. An introvert in a business that requires extroverts, for instance, would tend to struggle, and that doesn't help anyone. Quality franchisors want happy and prosperous franchisees as they make the system flourish. Even a superior business model run by a brilliant franchisor could fail if it was populated with the wrong franchisees.
Today, you should never feel that you are being "sold" or that you have the simple option of "buying". As you gather franchise information and investigate franchises, you should have the experience that the franchise development person is investigating you, too. S/he will investigate your skills, your priorities, your past experience, and may look into weak areas so that you can work together to decide if they are issues. You might even be given a skills or personality inventory, which will compare your scores to those of successful franchisees already in the system. The franchise education process will be one of reciprocal discovery.
Once you discovery the system that's right for you, and you reach the end of the discovery process, you should have the feeling that you will be working with people you like and trust, and who share your drive to be successful. - 16747
If you "buy" a franchise it would imply that you have control over the process, much the same as if you were buying broccoli at the grocery store. You simply appraise the various franchises that are available then walk up to the cash register and "buy" the franchise.
If a franchisor "sells" you a franchise it may bring to mind dealings you might have had at a used car lot. You would face a heavy handed sales person whose goal is to 'close' the deal knowing, of course, that they will never see you again.
The good news is that you should have neither experience in today's franchising world. Today, high quality franchisors focus on "awarding" franchises to the best candidate. The franchise development person's job is to discover a partner for the franchisor - someone who shows potential to be successful in that particular franchise system.
The term "awarding" came into widespread use in the 1980s. It reflected franchisors' collective realization that it was in their best interest to work with quality franchisees who would present assets to the brand.
This is a logical change from the early days of franchising. When franchising was young, many franchisors thought that if they provided a successful model and adequate training, anyone could succeed. While the model and training are decisive, the other key ingredient is the franchisee. An introvert in a business that requires extroverts, for instance, would tend to struggle, and that doesn't help anyone. Quality franchisors want happy and prosperous franchisees as they make the system flourish. Even a superior business model run by a brilliant franchisor could fail if it was populated with the wrong franchisees.
Today, you should never feel that you are being "sold" or that you have the simple option of "buying". As you gather franchise information and investigate franchises, you should have the experience that the franchise development person is investigating you, too. S/he will investigate your skills, your priorities, your past experience, and may look into weak areas so that you can work together to decide if they are issues. You might even be given a skills or personality inventory, which will compare your scores to those of successful franchisees already in the system. The franchise education process will be one of reciprocal discovery.
Once you discovery the system that's right for you, and you reach the end of the discovery process, you should have the feeling that you will be working with people you like and trust, and who share your drive to be successful. - 16747
About the Author:
This article was written by Rick Bisio, franchise expert and respected author of the book, Educated Franchisee. Rick has owned both franchised and non-franchised businesses. He has purchased, sold and invested in businesses and has taught others about franchising. Visit the Educated Franchisee to subscribe to Rick's free newsletter.
