Why Franchises are ‘Awarded’

By Rick Bisio – Franchise Consultant & Author of the Franchise Book -The Educated Franchisee

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 heart of what a health 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 review 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 could bring to mind dealings you might have had at a used car lot. You would face a heavy handed sales person whose objective 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 find a partner for the franchisor – someone who demonstrates 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 be 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 critical, the other key ingredient is the franchisee. An introvert in a business that requires extroverts, for example, would tend to struggle, and that doesn’t help anyone. Quality franchisors want happy and successful franchisees because they make the system thrive. Even a top-notch 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 ask about your skills, your priorities, your past experience, and  may probe for 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 mutual discovery.

When you find 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.

The Educated Franchisee is dedicated to franchise education through the sharing of franchise information.

Our objective is –‘To create educated franchise buyers that have clearly defined objectives and are able to recognize the right, or wrong, franchise when they see it. An educated franchise buyer will move into the franchisee role with their expectations properly set and will have a heightened potential for success within the franchise system creating a win/win for all involved.”
To get more franchise information about how to stack the deck in your favor you can –