The Brand:
What is the value of the franchise brand in your target geographic market? Perhaps the brand has a great presence in the Northeast, but that may have little to no value for you if you are considering opening the first unit in the Southwest. A big part of what you are paying for is the brand recognition that the franchisor has ideally already invested in and developed.
A strong, positive and established brand is one of the biggest advantages of franchising. It would be extremely difficult to build a brand by yourself to the level that a successful franchise can achieve. A great brand should have positive value in the eyes of the customers or clients you're trying to attract. Important considerations on this point include:
What is the value of the brand in your market?
Does it have a positive reputation, or have there been issues in the past that have tarnished it?
Is it a tired and dated brand, or is it fresh and relevant?
If the franchise you are considering is just getting started, or has limited to no presence in your area, then you should evaluate their ability to execute. What are their plans for building a brand that will benefit your location over time?
As other franchise locations open in the same area, is there a budget and plan for marketing the brand image specifically?
What is your monthly cost to participate in developing and maintaining the brand (this is typically the marketing component of the monthly dues to the franchisor)?
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