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Choosing A Franchise; Is The Franchise Concept’s Brand Important To You?

Some of the people that have met with me for franchise selection advice have insisted on investing in an opportunity that has a recognizable name. Why is that?….

(This post may contain affiliate links. Please read my disclosure policy).

The discussion that I always make sure I have with prospective franchise owners includes a discussion of brands, and how it relates to their risk level.



I have found that most of my candidates feel that if they invest in a franchise of their own that has a great brand, like an AAMCO, a Dairy Queen, or even something like Subway, that they are entering the world of franchising in a way that really lowers their risk. That is not necessarily the case.

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Just because one invests in an extremely well branded franchise like Subway, does not mean that their investment equals what will amount to guaranteed financial success. What if:

  • They have no food service experience
  • They have never managed a group of hourly workers
  • They did not do their research, correctly
  • They didn’t have enough capital

Do any of those possible errors in franchise selection negate any positive impact of a recognized brand?

Another thing to think about as it relates to brand, is how does a franchise’s brand impact the availability of a great location for a prospective franchise owner?

If you are just starting your franchise selection process, you are probably thinking about where you would like to put your franchise? {If the franchise you are looking at requires a leased space} It is only natural to start thinking about where you would want to put your new business. it helps you visualize things better.

If you are looking into investing in a franchise that has a great brand, be prepared to be very flexible about your location choices. After all, if the franchise concept is branded, the choice locations may already be spoken for.

I have outlined a few things you may want to think about, when choosing a suitable franchise. Yes, the brand is important, and if you happen to have a strong brand, it will help you set yourself apart from the mom and pop operators in your geographic location.

In the future, I will discuss investing in franchise opportunities that may not be well branded. But, maybe it doesn’t have to be, for you to be successful….

This month’s Poll Question has to do with this article.

You’ll find it just to the right. Please vote on this important question…

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I'm The Franchise King®, Joel Libava. I help prospective franchise owners avoid bank account emptying mistakes. For over 20 years, I’ve been helping people make smart, informed decisions on franchises to buy, and I can help you, too! #thefranchiseking
The fantastic thing about Joel is his neutrality. Because he is not getting an incentive fee, he will always give you the advice that you need (even if not what you necessarily want) and that's pretty unique these days. Thank you Joel!"
- Nic Church, France
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