1851

Mergers and acquisitions (M&amp;A) in the franchising world can be complicated. One of the key elements that can make or break these deals is brand identity.&nbsp;Let's break down what brand identity is and why it matters in M&amp;A, and look at some tips for making these transactions successful.<h3>What Is Brand Identity?</h3>Brand identity is what makes a brand unique. It includes everything from the company’s values and mission to the way it looks and feels to customers.&nbsp;“A brand identity goes along with the values of your business and how you communicate with your product,”&nbsp;<a href="https://www.linkedin.com/in/david-brand-psb/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-role-of-franchise-brand-identity-in-ma-2726427" target="_blank" rel="nofollow">David Brand</a>, CEO of&nbsp;<a href="https://www.linkedin.com/company/brand-franchise-group/about/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-role-of-franchise-brand-identity-in-ma-2726427" target="_blank" rel="nofollow">Brand Franchise Group</a>, told 1851 Franchise. “If you have a good brand identity and you deliver on your promise, you will have a raving fan/customer for life.”In simple terms, brand identity is the personality and soul of a business. It’s what sets a company apart and keeps customers coming back. It’s more than just logos and slogans; it’s about creating a consistent and meaningful experience for customers.<h3>How Brand Identity Plays Into M&amp;A</h3>Keeping a brand identity intact during M&amp;A is crucial because franchises rely heavily on their established names and operating systems.&nbsp;“A successful merger or acquisition (M&amp;A) in franchising hinges on several key factors, with sourcing entrepreneurial or individual buyers being paramount,”&nbsp;<a href="https://www.linkedin.com/in/max-friar-calder-capital-mergers-acquisitions/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-role-of-franchise-brand-identity-in-ma-2726427" target="_blank" rel="nofollow">Max L. Friar</a>, managing partner at&nbsp;<a href="https://www.caldergr.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-role-of-franchise-brand-identity-in-ma-2726427" target="_blank" rel="nofollow">Calder Capital, LLC</a>, told 1851 Franchise.&nbsp;Franchise M&amp;A involves a “two sale” process. This means both the current franchise owner and the franchisor need to approve the new buyer. The buyer has to meet financial and operational criteria and align with the franchisor’s vision and standards.&nbsp;“The franchisor's approval is critical because they are entrusting their brand and reputation to the new owner,” Friar said.Part of this process includes discovery days, where prospective buyers get a deep dive into the franchise’s operations and culture. The transfer process involves steps like background checks, financial assessments and training sessions to ensure the new owner is prepared. All these steps help keep the brand identity strong and ensure a smooth transition.<h3>Successful M&amp;A Tips</h3>For a merger or acquisition to succeed in the franchising sector, careful planning and execution are key.&nbsp;<a href="https://www.linkedin.com/in/andrewdickow/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-role-of-franchise-brand-identity-in-ma-2726427" target="_blank" rel="nofollow">Andrew Dickow,</a> managing director at&nbsp;<a href="https://greenwichgp.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-role-of-franchise-brand-identity-in-ma-2726427" target="_blank" rel="nofollow">Greenwich Capital Group</a>, shared some essential tips with 1851 Franchise.&nbsp; Strong Back Office, SOPs and Field Support:&nbsp;Ensure the franchise has a strong back office, clear standard operating procedures (SOPs), and good field support to maintain consistency and efficiency.Good Relationship with the Franchisor:&nbsp;A strong, cooperative relationship with the franchisor is vital. It helps preserve important terms like royalties and development rights after the acquisition.Strategic Location Analysis:&nbsp;Look at the geographic locations of the merging entities to avoid cannibalization and find opportunities for shared resources. This can lead to cost savings and better service delivery.Growth Prospects and Franchising Experience: Understand the franchise’s growth potential and have experience in franchising. This helps in navigating the franchise model’s complexities and leveraging growth opportunities.Cultural Alignment: Ensure the merging companies have compatible cultures. A shared vision and similar corporate cultures make integration smoother and increase the chances of long-term success.Due Diligence and Financial Health:&nbsp;Conduct thorough due diligence to assess the franchise’s financial health and identify potential risks. This ensures the acquisition is based on solid ground.“By incorporating these elements into your approach, you can significantly enhance the likelihood of a successful merger or acquisition in the franchising sector,” said Dickow.&nbsp;Whether your brand is merging with another or being acquired, keeping the brand identity strong is key to continue thriving and connecting with customers.To learn more about franchise M&amp;A, check out these related 1851 Franchise articles:<ul><li><a href="https://1851franchise.com/the-beginners-guide-to-acquiring-a-franchise-brand-2726228#stories">The Beginner's Guide to Acquiring a Franchise Brand</a></li><li><a href="https://1851franchise.com/trends-driving-franchise-ma-2725879#stories">Trends Driving Franchise M&amp;A</a></li><li><a href="https://1851franchise.com/the-role-of-artificial-intelligence-in-ma-due-diligence-2725670">The Role of Artificial Intelligence in M&amp;A Due Diligence</a></li></ul>

The Role of Franchise Brand Identity in M&A

The Role of Brand Identity in Franchise Mergers and Acquisitions

1851 Franchise

Keeping a strong brand identity is key to successful mergers and acquisitions in franchising, helping ensure smooth transitions and ongoing success.

the-role-of-franchise-brand-identity-in-ma

Dillas Quesadillas

Design with photo of Michael Mabry and Dillas Primo Quesadillas logo

Franchise Times: New Franchise Exec Says Dillas Is Bringing ‘Excitement’ Back to QSR Category

michael-mabry-franchise-growth

Lawn Squad

Greener, Faster, Smarter: Why Entrepreneurs Are Choosing Lawn Squad 

Greener, Faster, Smarter: Why Entrepreneurs Are Choosing Lawn Squad as a Treatment-Only Lawn Care Franchise

lawn-squad-franchise-opportunity

Jollibee

How Jollibee’s Veteran Leadership Team Is Rewriting the Playbook for U.S. Expansion

franchise-leadership-growth

Woodhouse Spas

Photo of guest checking in at Woodhouse Spas reception desk

franchise-questions-answered

Mellow Mushroom

How Mellow Mushroom’s Model Made it the Perfect Addition to Brad Harper’s Restaurant Portfolio

How Mellow Mushroom’s Flexible Model Made it the Perfect Addition to Brad Harper’s Growing Restaurant Portfolio

mellow-mushroom-brad-harper-restaurant-growth

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Buying a fitness franchise, people exercising

Boutique vs. Big Box Gym Franchises: Which Offers Best ROI in the $7 Billion Fitness Market?

buy-fitness-franchise-boutique-big-box-comparison

Pieology Pizza Enters Chapter 11 Following Costly Bid To Save Struggling Stores

pieology-pizza-files-chapter-11-bankruptcy

CNBC: McDonald’s Will Assess if Franchisees Are Offering Value for Customers Under New Standards

mcdonalds-franchise-standards-value-metric

How AI Is Transforming Restaurant Operations and Franchises

ai-impact-restaurants-franchises-human-centric-technology

Round Table Pizza Franchisees Take FAT Brands to Court Over Marketing Fund Mismanagement

round-table-pizza-franchisees-take-fat-brands-to-court-over-marketing-fund-mismanagement

Photo of group of dogs standing together in day care facility

Top Pet Boarding and Day Care Franchise Opportunities for 2025

top-pet-boarding-daycare-franchises

Do You Qualify? A Look at the Chick-fil-A Franchise Requirements

do-you-qualify-a-look-at-the-chick-fil-a-franchise-requirements

The Top 15 Pet Supplies and Retail Franchises for 2025

the-top-15-pet-supplies-and-retail-franchises

The Top 15 Pet Wellness and Vet Care Franchises for 2025

top-pet-wellness-franchise-opportunities

A Practical Playbook: Who To Call First When Franchising Your Business

franchising-your-business-who-to-call-first

image of jerome hanway from right at home Las Cruces, New Mexico 1851 franchise franchisee spotlight

Jerome Hanway Is Building His Right at Home Franchise Around His Mission To Serve

right-at-home-franchise-las-cruces-jerome-hanway

AI-related job cuts, October U.S. job cuts, American job cut record

AI-Fueled Layoffs Reshape the U.S. Job Market — And Highlight Franchising’s Resilience

ai-job-cuts-franchising-path-forward

The Role of Franchise Brand Identity in M&A

MORE STORIES LIKE THIS