The first or introduction stage of the relationship between the franchisee or franchisor occurs when the potential franchisee seeks the initial meeting or communication with the franchisor. The introduction stage requires the franchisee and the franchisor to get to know each other better. Like most personal or professional relationships, each party is generally hoping to develop mutual respect, mutual trust, and a shared desire for success and profitability. 

The franchisee often finds that the relationship begins with extreme optimism, possibly blind faith, and an expectation that this business will be their life work. 

The franchisor will also be putting forth its best face because it is also hoping to develop a positive relationship with the franchisee and interest the franchisee in putting forth the effort to develop a successful franchise unit. 

The franchisor is meeting to qualify the franchisee and to see if they can award the potential franchisee the right to become a franchisee. It is during this initial stage that understanding, rapport, and communication begins to develop. It is during this stage that the potential franchisee decides to become a franchisee and to spend the next major portion of his/her life developing this specific business practice.