5.02 – Franchise + Brand = Success
Recognising the Importance of Brand in Franchising
The brand is a franchise system’s most valuable asset. Consumers decide what to buy based on their perception of the brand. Typically, they don’t consider who owns the local franchise; in their minds, they are interacting with a branch of a larger chain. This mindset is evident in the signage most franchisors require, which notifies the public that the location is locally owned and operated. Essentially, a company’s brand equates to its reputation.
Franchisors invest considerable time, energy, and money to ensure consistency across all their locations. This consistency is a significant advantage for new franchisees, promising them a steady flow of customers. A strong brand can communicate a positive message to customers. Conversely, a negative brand experience can tarnish the entire brand’s reputation. With a strong brand, consumers can anticipate and almost feel the experience they will have even before entering the local business.
Positive brand recognition is the goal for every franchisee. A well-known and successful brand means new franchisees don’t need to build brand awareness from scratch, as the franchisor and other franchisees have already done the groundwork. This established reputation for positive brand experiences is a major advantage of well-established franchise systems.
However, brands don’t start fully formed. Smaller franchise systems or those with limited brand recognition need to work harder to gain consumer acceptance. New franchisees in these systems may need to spend more on advertising and promotion to build brand recognition. When reviewing a franchisor’s offering, prospective franchisees should note that the specified advertising budget is usually the minimum required, and additional investment might be necessary to establish the brand locally.
Building Brand Recognition in New Markets
Establishing a brand in a new market requires a strategic approach. Here are some key steps for new franchisees to consider:
- Local Marketing: Invest in local marketing efforts such as community events, sponsorships, and local advertising to increase brand visibility.
- Customer Engagement: Focus on excellent customer service to build a loyal customer base that will spread positive word-of-mouth.
- Consistent Experience: Ensure that every customer interaction is consistent with the brand’s promise to reinforce the brand’s reputation.
- Feedback and Improvement: Collect customer feedback and continuously improve to meet and exceed customer expectations.
By following these steps, new franchisees can effectively build brand recognition and contribute to the overall success of the franchise system.