When you buy a franchise, it’s important to understand what you really own. You control everything about your business—your location, your staff, and your operations—but not the brand name.
What does this mean? It means you have to follow the franchisor’s rules regarding the use of the brand name. For example, the attached document from Momo Hut provides a thorough set of guidelines for franchisees. These rules cover everything from store design to marketing practices, ensuring that each Momo Hut location maintains a consistent brand image. While these restrictions might seem limiting, they are crucial for brand uniformity.
Even though you don’t own the brand name, there are significant benefits. Using the franchisor’s established brand means you benefit from a customer base that already knows and trusts the brand. This can help attract customers more quickly than if you were starting a new brand from scratch.
Additionally, the brand name acts as a safety net. A well-established brand comes with built-in credibility and trust, which can ease the challenges of starting a new business and reduce associated risks.
In summary, while you own everything about your franchise except the brand name, this setup allows you to leverage an established brand with a pre-existing customer base and built-in trust. It’s a trade-off that provides valuable advantages.Do You Actually Own a Franchise Business?
