Awarding vs. selling: Why the best franchise systems choose their franchisees

After our first 10 units, we got excited and started adding locations fast. If someone could write the cheque and seemed enthusiastic, we’d usually find a way to bring them on

Awarding vs. selling: Why the best franchise systems choose their franchisees

On paper, it looked like progress. In reality, we were planting timebombs: misaligned owners, inconsistent performance, and headaches for the brand and our existing network.

Over time, we made a fundamental shift at PropertyGuys.com: we stopped selling franchises and started awarding them.

That mindset changed everything—from who we bring into the system, to how we protect our culture, to how confident top candidates feel about joining us. It’s a shift every emerging brand needs to make if they want to be in the EF100 conversation not just this year, but ten years from now.

Selling vs. awarding: A subtle shift with massive impact

When you’re selling franchises, the focus is on closing the deal:

• How many leads did we get?
• How quickly can we move them through the funnel?
• What do we say to overcome objections?
• When can we get them to docs?

When you’re awarding franchises, the focus is very different:

• Is this person a cultural fit?
• Will they protect and strengthen the brand?
• Will they follow our system?
• Are they prepared to do the work required?

Awarding means you’re willing to say no—even to qualified buyers—because you’re protecting something more important than short-term fees: the long-term health of your network.
That starts with recognising the difference between a grounded, committed candidate and someone chasing a fantasy.

Red flag mindset: Buying a dream, not a business

Every system meets candidates who love the idea of entrepreneurship more than the reality. They’re not bad people—but they’re dangerous for an emerging brand.

Over the years, I’ve noticed a consistent set of “fantasy” questions and phrases that signal misalignment between what the candidate wants and what the franchise actually is.

Red flag phrases (indicators of fantasy)

When you hear questions like:

• “How passive is this?”
• “How soon does it start running itself?”
• “Do you bring the customers?”
• “What do you do for me vs. what do I have to do?”
• “What’s the least amount of time I need to put in?”
• “How much money can I make?”
• “I want something stable without too much hands-on work.”

…you’re not just hearing curiosity—you’re hearing expectations.

Underneath those questions is usually a belief that the franchise will:

• Generate demand with minimal effort
• “Carry” the owner to success
• Operate like a guaranteed income stream rather than a business that requires leadership, resilience, and daily effort

That’s not franchising. That’s a lottery ticket.

As an emerging brand, you can’t afford owners who think the system will do the work instead of them rather than with them.

Behavioural red flags: When the story doesn’t match reality

Words matter, but behaviour is even more telling. Watch how candidates actually show up.
Some of the biggest red flags we look for:

Avoids community presence or talking to people

Franchisees need to be visible: networking, building relationships, engaging locally. If a candidate clearly dislikes being out in their community—or keeps trying to outsource it all—you’re forcing them into a role they’ll resent.

Wants the system to “carry them”

Listen for: “Once I’m set up, the system should just keep me busy, right?” That mindset misunderstands the relationship: the system is the platform, not the pilot.

Looks for shortcuts

These candidates obsess over hacks: fastest way to break even, minimal marketing, how to avoid certain parts of the work. The same people looking for shortcuts in the sales process will likely cut corners on brand standards.

Blames external factors early

If they’re already blaming “the market,” “my last employer,” or “no one supports small business here” before they’ve even joined, you can predict how they’ll explain underperformance later.

When you see these patterns, don’t try to “coach it out” during the sales process. Your job isn’t to rescue someone from misalignment. Your job is to protect your franchise family by only awarding territories to those who are truly ready.

Green flag mindset: What strong franchisees sound like

The right candidates also reveal themselves quickly—often by the questions they ask.

  • They talk about contribution, not just extraction

Instead of “What do you do for me?” they ask:

• “What does a top-performing franchisee do differently day-to-day?”
• “How can I add value to the brand and the network?”
• “What does great look like in year three, not just year one?”

They see themselves as partners, not passengers.

  • They embrace community and visibility

They’re comfortable being the face of the brand. You’ll hear:

• “I enjoy meeting people—it’s one of my strengths.”
• “I’m active in local organisations already. How can I leverage that?”
• “Are there brand-approved ways to get involved in community events?”

For brands like ours, where local presence is everything, this is pure gold.

  • They respect the system and bring initiative

Strong candidates hold two ideas at once:

• “I want to follow your proven system.”
• “I’m prepared to work hard and bring my own energy to it.”

They don’t want to reinvent your model, but they’re not looking for a script they can run in their sleep either. They ask detailed questions about training, support, and performance expectations because they plan to use them.

  • They have a realistic relationship with risk

Great franchisees understand that:

• There are no guarantees.
• Early months may be demanding.
• They must invest time, not just money.

Instead of “How soon does it run itself?”, they ask:

• “What does a typical ramp-up period look like?”
• “What metrics should I focus on in the first 90–180 days?”
• “What were the biggest surprises your most successful franchisees faced in year one?”

Those are the questions of an owner, not a dreamer.

Building an awarding process: Practical steps for emerging brands

So how do you operationalise awarding versus selling? Here are a few practices that have helped us—and that any emerging brand can adopt.

  • Define your “ideal owner” beyond the cheque

Get brutally clear on the non-negotiables:

• Personality traits (coachability, resilience, relationship-driven)
• Lifestyle realities (time availability, local presence)
• Values (integrity, community-mindedness, alignment with your mission)

Share this profile internally so your whole team is aligned on who you’re looking for.

  • Write your red and green flags down

Don’t keep this in your head. Document:

• Phrases that concern you
• Behaviours that signal misalignment
• Questions and attitudes that correlate with your top performers

Review them regularly with your team. A strong pipeline can tempt you to excuse red flags “just this once.” That’s how culture erodes.

  • Use your process to test fit, not just sell fit

Treat each stage—webinar, discovery call, validation, discovery day—as a mutual selection process, not a sales funnel.

After each interaction, ask yourself:

• “Would I trust this person with my own brand in that market?”
• “Would our existing franchisees be proud to introduce them as a peer?”
• “Would I want to sit beside them at conference for the next ten years?”

If the answer is anything less than an enthusiastic yes, listen to that.

  • Empower your network to be gatekeepers

As your system grows, your franchisees become your best validators.

Encourage them to be honest, not promotional, with candidates. Ask for their feedback after validation calls and discovery days. They’ll often spot misalignment head office misses.

When owners know you take awarding seriously, their pride in the brand—and willingness to refer other great operators—goes up.

The long game: Slow down to go faster

The franchisors that stand out in rankings like the Elite Franchise 100 aren’t just the ones who grew quickly. They grew deliberately—protecting culture, supporting performance, and choosing partners as carefully as those partners chose them.

Awarding instead of selling may mean:

• Saying no more often.
• Walking away from deals that help you hit short-term targets.
• Having uncomfortable conversations when a candidate isn’t a fit.

But the payoff is enormous:

• Stronger unit-level performance
• More resilient brand reputation
• A network of owners who lift each other—and the system—higher

At PropertyGuys.com, we often remind candidates: you’re not just buying a business, you’re joining a team. The same is true in reverse: every time we award a franchise, we’re inviting someone onto our team.

As an emerging brand, build a process—and a mindset—that honours that responsibility.
Because in the end, the difference between selling and awarding isn’t just semantics. It’s the difference between a franchise system that burns bright and fades fast… and one that grows stronger year after year, owner by owner, door by door.

ABOUT THE AUTHOR
Ken LeBlanc
Ken LeBlanc
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