Is Brand Recognition for a Business Coaching Franchise Valuable?
Often, when you’re considering a business coaching franchise, the franchisor will tell you that their “brand recognition,” in and of itself, is a valuable asset that will bring you business. But is brand recognition for a business coaching franchise really valuable?
True national brand recognition is generally only achieved by massive corporations, the result of billions of dollars being spent constantly on print, broadcast, and internet advertising. (Think McDonald’s or Dunkin’ Donuts). Even the largest business coaching franchisors in the world simply don’t have the kind of cash and traction necessary to make themselves a household name.
This means that the “brand” you’re buying probably isn’t worth as much as they claim. In most cases, the money you would have spent on a brand-name that nobody recognizes would be much better invested in building your OWN brand, one that you can control and make a powerful force in your local market or niche–where it matters most.
In most cases, the money you would have spent on a brand-name that nobody recognizes would be much better invested in building your OWN brand, one that you can control and make a powerful force in your local market or niche--where it matters most.
How to Check Claims of Brand Recognition for a Business Coaching Franchise
First, look critically at the level of brand recognition the franchisor can legitimately claim. Make a list of the brands you know off the top of your head. Are ANY of them professional services companies, such as business coaching firms? If so, what size are these businesses? If you’re like 99% of the people who complete this exercise, you’ll realize fairly quickly that national brand recognition is usually NOT achieved by smaller organizations like business coaching franchises.
Then call five of the most influential accounting firms in your region and ask them if they’ve ever heard of the franchise system you’re considering buying. If they have, ask them about the reputation of the system. If they’ve never heard of them before, then most likely their clients (your prospects!) haven’t heard of the franchise either – guaranteed! If they HAVE heard of the franchise you’re exploring, what’s their reputation like? Will it help you or harm you?
For more inside tips on doing due diligence on business coaching franchises, check out our FREE ebook, The Business Coaching Franchise Buyer’s Guide.