Last time, we talked about how onerous the restrictions on franchisees can be and I suggested that part of your due diligence should include checking out your business coaching franchise franchisor’s online reputation by going to www.ripoffreport.com to see how many unresolved complaints have been leveled against them. Then Google the phrase “business coaches who have left XYZ” to see what people are saying.
Today, I want to go over the fourth franchise myth from Robert Purvin’s book, The Franchise Fraud. I consider this one to be particularly relevant for prospective business coaches.
Business Coaching Franchise Myth #4
The Franchisee Gains a Valuable Asset in the Trade Name and Trademarks of the Typical Franchise.
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.
Unfortunately, this is usually not the case.
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. Even the largest business coaching franchises in the world simply don’t have the kind of cash and traction necessary to make themselves a household name.
This means that the business coaching franchise “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 — where it matters most.
Before you invest, we recommend the following critical steps in your due diligence process…
Business Coaching Franchise Due Diligence
1. Look critically at the level of brand recognition the business coaching franchisor can legitimately claim. Make a list of the brands you know off the top of your head. Are ANY of the brands 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.
2. Call 5 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?
3. Get social with Coaches’ Coach! Take a minute now to join our LinkedIn Group, Facebook page, and follow us on Twitter. Social networking is a critical part of success in the information age — and by connecting with our thriving community of successful business coaches, you’ll be able to find more success, faster. Just follow the links below…
Like our Facebook Page HERE.
To your success,
P.S. As an alternative to buying a business coaching franchise, consider enrolling in a FREE 30 Day Trial of the Coaches’ Coach members only site! It’s our complete business coaching system, including customizable marketing campaigns, sales scripts, client training materials, business optimization modules, and more. Now, you can get a FREE 30-day trial. One of our clients recently closed $1,500 in recurring monthly revenue after just 3 days with our system…think what that could mean for YOUR business!