AAFD Franchise Tip #4: Go With A Strong Brand
The American Association of Franchisees & Dealers (AAFD) is a non-profit organization that acts to educate the public regarding fair franchise practices, quality franchise opportunities, and to expose the unethical practices. The AAFD recommends that individuals considering franchise opportunities should look for 8 elements to consider in a franchise. They believe all 8 are critical in selecting a good franchise opportunity.
TIP #4: Go With a Strong Brand.
According to the AAFD:
Select a franchisor with a well accepted trademark.
* From “8 Things to Look for in a Franchise” by the American Association of Franchisees and Dealers.
In the most literal interpretation of this tip, make sure that the franchisor has a federally registered trademark that is clearly distinctive and unlikely to be challenged in court. The trademark is an important advantage you’re paying for and agreeing to build. Make sure they have clear rights to use and defend it from imitators.
The broader interpretation is the franchise should have a strong brand, both in terms of current recognition, but also something that can be further developed in the future. If you buy into a chain called “Just Lamps,” you’ll want to be sure 1) They have a great reputation - if only regionally - for being the name in lamps, and 2) that you’re confident that just selling lamps will sustain the concept in the future. If they decide to branch out into a broader home decor product line, the specificity of the name is going to be a real liability.
Learn about some great regional brands by downloading our free guide:
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POSTED IN: x Franchise 101, x General, x Insider Tips
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