“Is the reason why people buy a franchise just for the franchise name?” We get asked this question quite often. And given that there are many established franchise names that over time have become branded in the world, it can seem daunting if you are wanting to franchise your business and realize that no one knows your name yet!
It Takes Time to be a Brand
First of all, it’s important to understand what it takes to become a “brand name”. Regardless of how long a business has been operating in an area and whether it has one, two, three or even a dozen locations, a business doesn’t really become a brand or become known until it has a presence in multiple markets. And in order for a business to accomplish this kind of recognition, it really has to have a lot of successful operators. So when you really think about it, the REAL underlying reason why people buy a franchise is because there are proven methods, techniques, processes and best practices that have been developed, not just for the franchise name (to learn more see “Why People Buy a Franchise“). So this myth is FALSE!
The truth is that name (or branding of a business) becomes more valuable over time as there becomes a presence in different markets. Franchising is simply the catalyst to make that happen quickly (learn more about franchising your business). So if you are thinking about franchising your business you must have a business which is scalable, unique and easy to operate (learn what the key points are to building a successful franchise). And once that begins to happen, then slowly the name of your business becomes recognizable and gradually your brand starts to take shape.
The Entire Business Model
People who buy a franchise typically want to get into a business quickly and learn how to do that business without having to try to figure everything out. This means that your responsibility as a franchisor is to teach these new business owners everything that they need to know about starting your business in their market. That’s right your entire business model. Everything from how to put the business together to advertising for customers and even down to how often you do the bookkeeping for the business. The whole idea is that these operators do not have to go through the same mistakes, trials and tribulations that you did when you first started your business (read more about our strategy and how we help you structure your franchise training program). In other words, as a franchisor, you are going to fast-track things so that a new business owner can immediately start your business in their market and immediately start generating revenue.
What Does the Business Actually Provide
Another unit of measure for value of the franchise business is what the business actually provides and is there a demand for the service or product the business produces. in otherwards, does the franchise business meet a need? Has the franchise business been proven to work (proof of concept) and has it been operating already?
But make no mistake, the true value of a franchise business is the: methods, techniques, processes and best practices that you give to the new business owner (see if your business makes sense to franchise by reading “Can I Be a Franchisor?“). And as different franchisees operate the business in different markets, the name that is associated with the business becomes more valuable over time. Once there is a presence in other markets, then you gradually begin to become a brand.
You could have the best name in the whole wide world (see this article “Franchise Because My Name is Gold“), but that doesn’t mean anything if you don’t have something successful behind it. In order for a business to become a recognizable name that people are going to want, you first have to have a business model that works on all levels. That is the real value of a franchise business! If you are interested in wanting to make your business name a recognizable brand then call us directly at 1-877-615-5177 and we will be happy to explore if franchising makes sense for you.
- Your Role as a Franchisor
- Should You Franchise Your Business?
- People Buy a Franchise for More than Just Ongoing Support
- What Does it Mean to Franchise Your Business?
