The Ultimate Guide to Responsible Franchising

Chapter 12Your Final Decision Checklist

This chapter summarizes a list of questions primarily into “yes” or “no” responses to force you to choose to better understand your risk. I understand that most of these questions could be answered on a spectrum, but at this stage of your investigation, I want to cut through the noise and mind clutter to help you identify where the brand is competent and where your risks will predictably come from so you can do your best to head them off. Special thanks to my colleague Alicia Miller for compiling this list.

Questions About the Brand

• Will this brand be successful over the long term?
• Does this brand have the potential to become iconic?
• Does this brand have the potential to scale to Regional leadership status? National? International?
• Does the brand have a clear identity, make a clear brand promise, and offer real and perceived value to customers that exceeds price?
• What are the brand risks or threats (competition, technology, emerging products, regulatory, other)? Does the franchisor have a reasonable and workable strategy to mitigate these risks?
• Is this franchise system organized to maximize the opportunity and fulfill the brand promise?
• What is the consumer value proposition? Is the value proposition unique, profitable, and defensible?
• What is the brand reputation (online reviews, social media platforms, net promoter scores, consumer ratings, and so on)?

Questions About Fit

• Is this brand the best use of my time, capital, and best ...