Franchise Talk

What Kinds Of Opportunities Does Franchising Offer? – Part 2

March 17th, 2009 | Author: Jack

Established Brand Awareness
Everyone knows what the McDonald’s logo looks like and what the “Golden Arches” represent. No matter where you go in the world, if you set foot inside a McDonald’s you can order a Big Mac or Quarter Pounder and know exactly what it’s going to taste like. Established brand awareness, reliability, and uniformity are part of the power of franchising.

Imagine the time and resources needed to create awareness for an independent, start-up brand. It would be tremendous. An established franchise brand already is well-known and provides each new franchisee a market presence that is recognizable locally, nationally, and globally.

Brand awareness — typically through coordinated marketing and advertising efforts — is something a franchisor handles, while you and your fellow franchisees reap the benefits. Established, successful franchisors will prepare and pay for the development of professional advertising campaigns at the national, regional, and local levels — a practice that benefits all the franchisees in the system and builds the brand.

Many franchisors also work directly with their franchisees to provide advice and resources to help them develop effective marketing programs for their local area through a cooperative marketing fund (you and all of your fellow franchisees have already contributed to the fund through your fees and royalties).

Franchisors also provide marketing materials to their franchisees, as well as marketing guidance starting with initial training and continuing through the length of the franchise agreement. One of the biggest benefits of owning a franchise is the marketing program, so keep that in mind as you make your franchise selection.

From a competitive standpoint, franchising couples market penetration with brand awareness. As additional franchised or company-owned locations are opened in your region (and throughout the world), the brand’s name recognition increases — further enhancing the value of each franchised unit.

Economies of Scale… read on.

Also read: What Kinds Of Opportunities Does Franchising Offer? – Part 1