Franchisors and some consultants tell me that franchises are ‘awarded’ to good candidates. Am I impressing them or are they supposed to be impressing me? I’d like to know the truth about franchise sales. Am I really in competition to be awarded a franchise opportunity?
Franchise sales is (generally) just that – SALES
Franchise sales people have used the term ‘awarding franchises’ for many more years than we have been around franchising and it will continue to be a popular way of surrounding the sales process with a little bit of mystique.
In years past, the key attributes possessed by a prospective franchisee included having adequate finances and passing the feather test (i.e. breathing). We’d like to think things have changed for the better, but there will always be franchisors interested primarily in selling a new franchise rather than truly qualify a prospect.
Admission to a franchise network could, and in our opinion, should be a strict process that takes into consideration the needs of the franchisor and the ability of a candidate to meet those criteria. You’ll find that the very best franchise systems demand exacting standards be met and in those cases franchises are actually awarded to the best candidates. Quality usually demands quality and successful operations stand on their principles.
Smart franchisors are interested in long-term relationships aimed at smooth term of give and take over the length of the franchise agreement. Perhaps the most shining examples in the industry are the truly successful that are also stubborn about their criteria. Chick-Fil-A franchise opportunities and its management are more than proud of their brand; they insist in quality.
Our advice short and simple is this. When it comes to franchise sales, if the representative your are working with (whether a broker or an employee of the franchise) pays little attention to you while extolling the virtues of a franchise opportunity, then consider yourself just a number. Franchise sales people work primarily on bonus and commissions, and that is particularly true of brokers (often calling themselves franchise consultants who offer ‘free’ consulting).
Buying a franchise should be a mutually engaging process in which buyer and seller get to know each other for the sake of the long term. If you feel that franchise sales people are ‘selling’, perhaps you should look elsewhere.