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Let’s face it. When you’re buying a franchise, the amount of options available to you is overwhelming. It’s easy to look to well-known and award-winning franchises, but is that the right choice for you? Here are a few ways to know whether you should consider a franchise that’s a household name and has received accolades from the industry, or if you should opt for another franchise instead.
Pro: More Name Recognition
One of the biggest benefits of buying a franchise is tapping into that instant name recognition. Award-winning franchises are sure to be a household name to your audience because of the reputation the franchise has built over the years. When you buy the franchise, you’re buying those years of hustle, making your new business an instant household name. That’s a tremendous upside if you’re trying to gain traction quickly.
Pro: Better Internal Processes
In addition to having built an external reputation, the franchise has also had time to hone the internal processes. The mistakes have been made for you and you get to reap the benefits by buying into a business that has won awards for its success. Having these refined internal processes isn’t anything to brush aside either. The smoother the process of getting up and running, and then managing your franchise, the faster you’ll make money. It’s an important consideration and major benefit to you, the franchisee.
Con: You Might Have More Local Competition
The potential downside to buying a franchise that’s already a household name is that you might have more local competition. Check your region to gauge how busy the same franchises are in your area and the demand for more options. In some cases, even with local competition, it might make sense to open another location. In other cases, especially if the franchise has territories, you might not be able to buy that particular franchise.
Con: More Expensive
Often, a well-known, award-winning franchise comes with a higher price tag. That price tag is understandable because of the years and investment that has already gone into making the franchise so recognized and loved.
Before writing off a potential franchise for the cost alone consider how this con could be turned into a pro. If you’ve done your research and know there’s a local demand for that particular franchise, chances are you’ll make back your initial investment faster than if you buy a franchise that isn’t needed or known.
Is It Worth It?
Most often, the answer is yes, the higher cost is worth investing in because of the promising benefits that go along with buying an award-winning franchise. However, before you jump at this opportunity, make sure to do your competitive analysis and be certain your area is ready for and needs another franchise like this one.
Susan Guillory is the President of Egg Marketing & Communications, a marketing firm specializing in content writing and social media management. She’s written three business books, including How to Get More Customers With Press Releases, and frequently blogs about small business and marketing on sites including Forbes, AllBusiness, The Marketing Eggspert Blog, and Tweak Your Biz. Follow her on Twitter @eggmarketing.