In franchising a name that counts with the customers is a very popular asset in licencing - one could even say it's central to it.

In reality not many franchises can offer that kind of starting point. In fact many new companies are coming on to the scene and some of them are fairy young and cannot realistically exploit the big name factor in marketing. Among their offerings is training and head office support wich will theoretically permit the franchisee to learn how to operate the franchise even with minimal prior experience on business matters.

If a franchisor has not established his trade name to the degree of instantly wide recognition, he should not charge a great deal for it in the franchise package. So if you are dealing with a new franchisor you, make sure that you negotiate a fair price for the licence fee in propotion to the value of thw name under wich you will bw traiding.

« Previous article