The following is an excerpt from the book "Street Smart Franchising."

According to Webster's Dictionary, a franchise is "the right or license granted to an individual or group to market a company's goods or services in a particular territory." The company offering the license is called "the franchisor," the person investing in the license is called "the franchisee," and the license is called "the franchise."

Webster's defines franchising in terms of a legal business relationship. This is indeed an important aspect of franchising, but it doesn't tell the whole story.

Franchising as a Distribution Model

A popular book on franchising defines a franchise as "a system for expanding and distributing goods and services -- and an opportunity to operate a business under a recognized brand name." Here franchising is described as both a distribution model for getting products and services to market and as a business opportunity. Franchisors rely on franchisees, which are independent businesspeople, to get the franchisor's products and services to market.

These are important aspects of franchising, but they don't capture the essence of what franchising really is or can be.

A Better Definition - Franchising as a Relationship

The relationship between franchisees (the independent businesspeople who license the franchisor's name and operating systems) and skilled franchisors (the parent company) transcend the boundaries of any legal and business relationship that exists. Theirs are highly personal relationships. The franchisees and the franchisor, in their successful dealings with each other, form a tight-knit community. Franchising melts down into a business relationship only when these personal relationships either break down or were never properly cemented in the first place. Franchising further degenerates into a legal relationship only when business relationships are harmed. If franchisees and franchisors only define their relationship in terms of legal and business relationships, they aren't thinking big enough. Trust, respect, and open communication defines these relationships.

The franchise relationship is grounded in a sacred trust and mutual respect between franchisees and franchisors. Each has a mission-critical job to do; each greatly impacts the other. Like combat soldiers in a platoon, franchisees and franchisors completely depend on each other to execute their jobs well to ensure mutual survival.

The franchisees' job is to serve their customers to the best of their ability consistent with the original intent of the franchisor. The franchisor's job is to maintain the integrity of the brand and create processes, systems, structures, products, marketing, and other resources which produce results that are far superior to any that one or two franchisees could produce for themselves.

Franchising as a Strategy to Co-create a Desired Future

Zig Ziglar once said, "People don't buy drills, they buy holes." Consider people who invest in franchises, they really invest in some desired future consisting of both the financial and quality of life rewards associated with owning a business.

The International Franchise Association (IFA) estimates there are more than 2000 franchisors representing over 80 different industries. As you can see, there are a lot different tools in the franchising toolbox, meaning thousands of potential outcomes. Any desired result anyone could ever want to achieve for themselves and their families is currently available in franchising.

Anyone who looks into investing in a franchise ultimately is faced with a decision. "Do I compromise on my dreams and stay on the path I already know, or do I take a chance and try to create the life I want?"

Currently there are more than 770,000 franchisee-owned outlets in the United States. Every franchisee has come to the exact same crossroads. Few who invest in a franchise, are completely aware of everything it takes to succeed within that franchise. However, in the face of not knowing, they still take a bold step of faith and trust the franchisor with both their money and dreams.

On the flip side, those who work for the franchisors also have dreams. They, too, want their lives and careers to look a particular way. They are counting on their franchisees to help them achieve their dreams also. Each is co-creator of the other's future.

This trust transcends the terms of their franchise agreement.

Franchising as a Calling

To franchisees, the franchisor is their chosen vehicle to get them from where they are now to where they want to be in the future. They experience being called forward to risk their lives, dreams, and resources to the care and talents of the franchisor to assist them in creating their desired life.

To the franchisor, the franchisee is the chosen vehicle to take the franchisor from where they are now to where they want to be in the future. They risk their proprietary systems, products, and business secrets to the care of the franchisees.

Each is called forward into the service of the other.

As the founder and CEO of a youth sports franchisor once said, "This franchise has ceased being a business to me. Youth sports is now what I am called to do, it's bigger than me. I am blessed by surrounding myself with franchisees who experience the same calling."

"The Best Definition - Franchising as One Body

Oddly enough, perhaps the best definition of franchising was written 2,000 years ago. As you read this, think of a franchise as one body consisting of several members: the franchisor (the parent company), franchisees (business owners), suppliers and customers.

The body does not consist of one member but of many. If the foot would say, "Because I am not a hand, I do not belong to the body," that would not make it any less a part of the body. And if the ear would say, "Because I am not an eye, I do not belong to the body," that would not make it any less a part of the body. If the whole body were an eye, where would the hearing be? If the whole body were hearing, where would the sense of smell be?...If all were a single member, where would the body be? As it is, there are many members, yet one body. The eye cannot say to the hand, "I have no need of you," nor again the head to the feet, "I have no need of you." On the contrary, the members of the body that seem to be weaker are indispensable...But God has so arranged the body, giving the greater honor to the inferior member, that there may be no dissension within the body, but the members may have the same care for one another. If one member suffers, all suffer together with it; if one member is honored, all rejoice together with it.

While many franchisors may embrace this definition, not all do. The founder and CEO of a successful national franchisor recently spoke at a national convention for franchise executives. During his presentation a member of the audience asked, "How do you resolve conflicts with your franchisees?"

He proudly threw his shoulders back and chest out and proclaimed, "When push comes to shove, the franchisees know this is my company!"

Keep in mind, this company is currently highly successful. However, his approach to franchising causes the pushing and shoving he spoke of. This approach to franchise leadership is the equivalent of the head saying to the feet, "When push comes to shove, this is my body!" And perhaps according to terms of the franchise agreement it is.

But someday, the head will need to walk someplace. That's when the head will have some issues.

As you investigate different franchises, find a franchisor whose leadership sees franchising as one body. If in your search you find a franchisor who thinks its their body; where they are the head and the lowly franchisees are at the feet, seize the opportunity to be the feet...and run!