“Buying” a Franchise vs. Being “Awarded” a Franchise
Are franchises andldquo;boughtandrdquo;, andldquo;soldandrdquo; or andldquo;awardedandrdquo;? Is the franchisorandrsquo;s representative in the andldquo;franchise developmentandrdquo; department or andldquo;franchise salesandrdquo; department? This may seem like semantics but it is at the essence of what a successful franchise relationship is all about.
If you andldquo;buyandrdquo; 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 andldquo;buyandrdquo; the franchise.
If a franchisor andldquo;sellsandrdquo; 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 intention is to andlsquo;closeandrsquo; the deal knowing, of course, that they will never see you over again.
The good news is that you should have neither experience in todayandrsquo;s franchising world. Today, high quality franchisors focus on andldquo;awardingandrdquo; franchises to the best candidate. The franchise development personandrsquo;s job is to bring a partner for the franchisor - someone who demonstrates potential to be thriving in that particular franchise system.
The term andldquo;awardingandrdquo; came into widespread use in the 1980s. It reflected franchisorsandrsquo; collective realization that it was in their best interest to work with quality franchisees who would present assets to the brand.andnbsp; 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 doesnandrsquo;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 andldquo;soldandrdquo; or that you have the simple option of andldquo;buyingandrdquo;. 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. When you find the system thatandrsquo;s good for you, and you reach the end of the discovery process, you should have the belief that you will be working with people you like and trust, and who share your drive to be successful.
http://www.educatedfranchisee.com Since 2002, I have been given the wonderful opportunity to share my experiences in the franchise business by providing coaching services to individuals considering buying a franchise. My objective in this book is the same as in my practice. I want to match the right person to the right franchise and, in the process, share my knowledge about the franchise business.Buying a franchise is an important decision.
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