What is a Franchise Brand Worth?

With a recognised brand name often put forward as being one of the important most valuable parts of a franchise I have given you a few questions to think about when looking at a potential franchisor.

 Did you ever hear of the franchise you are considering before you investigated franchises?

 Has anyone you know ever heard of them?

 Have any of your potential clients/customers ever heard of them? A good bit of due diligence around this one question alone can prove invaluable.

 Have any industry commentators i.e trade press, specialists, forums e.t.c ever heard of them?

 For the type of business you are going to be in is a national brand really needed?

 If a national brand is beneficial is there any way of putting a financial value to it? How much are you prepared to pay someone just to access the brand name.

 What plans does the franchisor have to develop and grow the brand?

 What does the brand mean and stand for? Any good well developed brand will convey planned images, associations and meaning to a customer. Ask the franchisor what their brand stands for and judge their response. If they can’t tell you then is it worth paying a premium for?