A franchise’s Brand is what defines it. It’s what keeps customers coming back, and its what attracts entrepreneurs as franchisees.
Whether you’re a first time franchisee, or a seasoned franchising entrepreneur, wading through the world of franchise brand opportunities is no small task. While many offer great products and services, their brand may not be compatible with a particular territory or your goals as a business owner.
At MOM, we do everything we can to back our franchisees with the strongest possible brand, and we know a thing or two about what makes a brand what it is. We’ve also found that there are 5 characteristics that franchisees should get familiar with before investing in a brand.
1. Identity
It’s one thing for a franchise to offer a great product or service, but it’s another to be known for it. A franchise’s brand identity is what drives it. It’s identity is what you’re buying into as a franchisee. Before investing in a franchise opportunity, consider its brand’s identity, how it stands out in the crowd, and whether you want to stand next to it as a small business owner.
2. Unique Selling Proposition
A unique brand is important, but you should also consider what it is that makes it unique. As a franchisee, you’re going to face competition from rival franchises and other SMBs, so you need to determine whether the brand you’re buying in to offers something unique enough to entice consumers.
3. Customer Experience
Brand’s have to interact with its customers, and as a franchisee, that’s going to fall on you. However, you’re just one of many public facing points-of-sale, and your customers’ expectations will be shaped by experiences they had at other locations as well.
What is the brand’s reputation for customer service? Is it part of their USP? How does it affect profitability? Is it something that you want to invest in or deliver on as an entrepreneur? These are all questions you should ask yourself before choosing to invest in a franchise.
4. Consistency
Consistency isn’t just about offering the same thing day in and day out. It’s also about offering a consistent customer experience.
Owning and operating a franchise is about more than offering a certain set of products and/or services. It’s also about creating a consistent experience for your customers. As an entrepreneur, you need to understand exactly what kind of customer service experience you’re investing in, as well as decide whether that’s the kind of experience you want to build your business on.
5. Presence
Consider this: you’re interested in a franchise that has a strong brand, a unique positioning strategy, a consistent presence, and a great customer service track record. The only issue? The franchise is virtually unknown by customers in your territory.
As a franchisee, you’re investing in more than just infrastructure and a supply chain. You’re investing in a reputation that will give you an edge over your competitors. Similarly, if a brand does not yet have an physical presence in a territory, you could be getting in on the ground floor of an opportunity with immense growth potential.
What it Really Comes Down To
When you’re investing in a franchise opportunity, a big part of what you’re investing in is a brand. While its infrastructure offers you economies of scale, its brand is what is going to bring customers through the door.
Investing in a brand, however, is a lot more nuanced than betting on a winning pony. It’s about choosing which pony you want to ride as a jockey across the winning line.
You have to invest in a brand that’s right for the marketplace and right for you as a business owner. And figuring that out requires taking a hard look at (1) what that promises you because of (2) what it promises customers, and (3) how any and all of that affect your operations, from infrastructure to revenue.
