By Michael Seid, Managing Director, MSA Worldwide

I was asked this question by a well known franchisor, and was struck by the question because the franchisor perceived the relationship he had with his franchisees in the context of a parent and its child. He had been taught the “child myth” and did not comprehend that it was this flawed perception of the relationship that was the underlying cause of his problems.

We all base our reactions and relationships on our experiences – both those personally weathered, and those taught to us by others. These experiences color our perceptions. By understanding how events really unfolded, and how they are interconnected, we can avoid repeating mistakes, prosper from the experience, and build a mutually beneficial relationship between franchisors and franchisees.

The Child Myth in Franchising

John F. Kennedy, in a 1962 commencement address at Yale University, said “The great enemy of the truth is very often not the lie – deliberate, contrived and dishonest – but the myth – persistent, persuasive and unrealistic.” One of the most persistent, persuasive and unrealistic myths in franchising is the “child myth.”

The child myth likens a franchisor’s relationship with its franchisees to that of a parent and their child. The oft-quoted premise is that franchisees join a franchise system with similarities to infants entering the world, then become pubescent adolescents where they begin to challenge their franchisors, then finally emerge as mature adults.

This is simplistic at best. At worst, it denigrates the majority of franchisees, overstates the role and responsibility of the franchisor, allows the franchisee to look outside themselves for causes of problems, and is at the root of many of the problems between franchisors and franchisees.

Franchisees are Adults… aren’t they?

Franchisees are not children. For the most part they are intelligent adults, investing in an unfamiliar business opportunity which requires them to learn new skills. As with anything new there is a period of uncertainty, but with practice, experience, luck and a reasonable amount of training and support, they are primarily responsible for their own future.

I am frequently engaged in crisis management and litigation support assignments, both as a consultant and as an expert witness. One common undercurrent that permeates these situations is the unstated theme of the “child” franchisee and the “parent” franchisor. Franchisees and their legal advocates utilize the child myth because it provides them with a convenient cover to blame anyone but themselves when things are not to their liking.

Some franchisees will use a variation of the “child myth” in demanding they not be held responsible for failing to exercise personal care. They want to be relieved of the same type of due diligence responsibility which adults are normally held to in buying a car, buying a house, or choosing their spouse.

Even faced with adequate disclosure information and the availability of professional advisors to assist them in understanding the franchise agreements, they demand relief because they chose not to act like adults when they entered the relationship. Instead, they want to turn to a parent – either in the form of a court or legislators – to make things better.

Franchisors also Perpetuate the Myth

Franchisors are equally at fault, because they have often used the child myth to their advantage. Children are easier to control and mold. But when problems in the relationship begin, it’s not because franchisees are entering adolescence that inflames the situation; it’s because they didn’t understand that franchisees should never have been treated as children to begin with.

Franchisees are simply inexperienced adults. Sometimes they are encouraged or allowed to act like children because it makes the sale easier to consummate. Often they are encouraged to be like children because it is easier to manage the relationship.

Healthy Franchise System Relationships

It is little mystery why some franchise systems have few franchisee relationship problems, even when the experience is not perfect:

• In these systems, franchisees are challenged to do their job from the beginning.
• While they are supported along the way, it is demanded of them that they do proper due diligence by researching the marketplace, discussing the opportunity with other franchisees, engaging professional advisors to assist them, and clearly understanding the relationship they are about to enter.
• They are required to educate themselves on the amount of capital they will need to succeed.
• They are expected to understand the type of location required and to work long and hard to find the perfect location that meets the system’s requirements.

They are not allowed to be passive to their investment, unless they have the resources required to hire, train, and support management who can operate the business for them. And they are held to the letter and spirit of the system’s quality and consistency standards, or are exited from the system in order to protect the other franchisees who would be damaged if they don’t.

No matter how long the myth has been quoted, franchising is not a relationship between parent and children. It’s a relationship between businesspeople – one who should be experienced and supportive, and one who over time will become experienced. It is as simple as that.