Many incoming franchisees place their faith and confidence in the business’ brand, and what it represents. For a potential franchisee looking at a new system as an investment option, Jess Logan from BrandsRPeople2 would advise checking if the business strategy has been built around what consumers have said they want.
“And that the brand is built to focus on clear differentials, is single minded and different.” Another question to ask the franchisor is how the brand plans to innovate and bring it to business.
Ecowash Mobile rebranded as Nanotek as part of a futuristic platform which involves focusing on its exclusive liquid polymer nano-technology.
With the Nanotek label, Ecowash can leverage off the back of the technology, indicates Logan. “It’s all about advanced technology built around a futuristic platform.” Spreading the word will include guerilla marketing and augmented reality, where mobile phones bring a billboard to life. Nanopods, the retail outlets, will have innovative layout and seating.
Because no matter how good the brand, if this reach does not extend to strong and appropriate marketing, it’s wasted. That’s a point highlighted by Byron Smith, franchisor of the salad bar retail chain, MYO.
“Recently at the FCA National Convention at a session run by Greg Nathan in regards to franchisee satisfaction the comment was made that according to their research marketing is one of the biggest issues franchisees have with the franchisor.
“As a franchisor the main aim in marketing nationally is to increase the brand. The brand is what people are trusting in when making buying decisions regarding purchasing a business and or the products sold. Creating a positive customer emotion and personal attachment to the brand is the ultimate way, to not only grow the business, but also to protect the brand for the future.”
As a franchisor Smith sees that selling franchises relies on the strength of the brand. It also assists franchisee’s increase their returns, not only by increasing customer numbers and sales, but also elevating the value of their business by increasing the multiple when they sell.
“As a franchisee I felt the role of the marketing fund was to increase my turnover and profits. So when campaigns did not have this strategy or outcome I would become frustrated with the marketing program.
“Well on reflection, from a purely strategic marketing perspective, sales strategies are only a part of the overall marketing mix to increase the brand.”
There are many other components which are also used by franchisors, marketing and advertising agencies to increase the brand of a franchise, says Smith.
“As franchisors I feel that we need to understand that the sales component is critical to our franchisees and even more so in the correct economic climate. Therefore, it is important to develop more ways to listen to a franchisee and their beliefs, strategies, issues and concerns in marketing which is paramount to grow a brand.
“This does not necessarily mean that these will be acted upon as obviously it will depend on the overall business and marketing strategies of the franchise. But listening is essential because innovation for any business comes from the floor and ideas can then flow.”