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Awarding a Franchise Semantics or Not

Written by: Rick Bisio

Article Overview: This article explores the nature of the franchise relationship. It discusses the commonly used term - Award a Franchise - and explores the importance of this perceptive in for formation of a healthy franchisor/Franchisee relationship.

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Awarding a Franchise Semantics or Not

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 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 ‘close’ the deal knowing, of course, that they will never see you over 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 bring a partner for the franchisor - someone who demonstrates potential to be thriving 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.

When you find the system that’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.

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Home > Small-Business-Loans > Rick Bisio > Awarding a Franchise Semantics or Not
Article Tags: 1980s, best interest, broccoli, business model, car lot, cash register, collective realization, franchise development department, franchise relationship, franchise sales department, franchise system, franchisee, franchisees, franchises, franchisor, grocery store, introvert, sales person, semantics, world today

About the Author: Rick Bisio
RSS for Rick's articles - Visit Rick's website

As one of the most respected franchise consultants in the United States, Rick Bisio has guided thousands of people to great decisions regarding business ownership and franchising. Rick has owned both franchised and non-franchised businesses. He has bought, sold and invested in businesses and worked as an advisor to others seeking the same. (Full Bio) Mr. Bisio is also the author of the acclaimed franchise book. (Learn more – The Educated Franchisee). The Educated Franchisee is an extension of the work that Mr. Bisio does on a daily basis in his franchise consulting business. In this book Rick freely shares his experiences and advice regarding business ownership and franchising. Rick also authors a monthly newsletter. (Sign up– The Educated Franchisee Newsletter.) Rick is a regular speaker on the topics of business ownership and franchising and currently lives on a small resort island in Florida with his family. If you wish to speak directly with Rick Bisio in order to discuss franchising, please feel free to Rick at (941) 778 4660 or email at rbisio@educatedfranchisee.com. Always remember – there is nothing more expensive than ignorance.

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More from Rick Bisio
Home Based Franchising The Give and Takes
How to Evaluate a Franchisor Training Program
Awarding a Franchise Semantics or Not
Maximizing Discovery Day
Understanding the Franchise Disclosure Document FDD


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