Franchise Branding
Franchise Branding
Franchising, by definition, requires adherence to the franchise concept. Only through a consistent application of the franchise’s image and methods will the separate businesses of individual franchisees result in one cohesive brand.
A brand is the most valuable asset of a franchise system. The stronger the brand (i.e., the more people who recognize it) the more valuable it is. A study conducted by the University of Toronto business school in the 1980s found that the sales of franchised doughnut stores were almost 100% greater than the sales of un-franchised shops. Why? Because in our busy world, we want predictability. As a result, when someone who has never been in your town or city drives into town looking for a coffee and a doughnut, they are more likely to drive to a well-known brand name, rather than experiment with “Bob’s Do-Nuts” — even though Bob might make the best doughnuts in the world!
A franchise brand includes the name of the franchise system, its building design and decor and, importantly, it’s menu and the precise makeup of all of the food and beverages (and other items) available on the menu. Tinker with any one of those things, and you dilute the consistency, and therefore the strength, and therefore the value of the brand. By allowing different franchisees to “go their own way” the franchisor is, in effect, breaking its promise to the consumer. It’s kind of like saying “you can’t trust us anymore to deliver our goods and services to you in a predictable way”.
For those Star Trek fans out there, you can think of the a franchise as the “Borg Collective”. The entire organism must think and act with one mind. That does not mean that the individual creativity or initiative of franchisees must be eradicated. On the contrary, good franchise systems have means to receive, assess and implement good ideas from the field. It may very well be that your cookies can be integrated into the brand. However, before the brand can be adjusted, the item in question must be itself tested for consistency, appeal and marketability. If you’re looking to sell hot dogs, your franchisor is more likely to say “that is so far outside of the concept that we won’t even consider it”.
Remember, as a franchisee, while you do retain individual responsibility for the conduct of your business, you do not have carte blanche to operate it in any way you please, and the franchisor has the right and a responsibility to all of the other franchisees of the system to maintain a consistent image and methodology. If total independence is what you want or wanted, then you should not get into franchising and if you are a franchisee, you should sell your business. When purchasing a franchise, your expectation should be that your franchisor knows more than you do. You are also buying into something where the actions of others can positively or negatively impact your business. For instance, if other franchisees within your system don’t keep their washrooms clean, that will (according to my wife) have a decidedly negative impact on your business – even if you keep your washrooms spotless. This is because customers who have never been to your location will assume that you have the same standards of cleanliness as the other franchisees in your system.
On this franchising issue, “all for one and one for all” makes sense.
Franchise Branding - To learn more about this author, visit Peter Macrae Dillon's Website.
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FRANCHISE BRANDING
Franchising, by definition, requires adherence to the franchise concept. Only through a consistent application of the franchise’s image and methods will the separate businesses of individual franchisees result in one cohesive brand.
A brand is the most valuable asset of a franchise system. The stronger the brand (i.e., the more people who recognize it) the more valuable it is. A study conducted by the University of Toronto business school in the 1980s found that the sales of franchised doughnut stores were almost 100% greater than the sales of un-franchised shops. Why? Because in our busy world, we want predictability. As a result, when someone who has never been in your town or city drives into town looking for a coffee and a doughnut, they are more likely to drive to a well-known brand name, rather than experiment with “Bob’s Do-Nuts” — even though Bob might make the best doughnuts in the world!
A franchise brand includes the name of the franchise system, its building design and decor and, importantly, it’s menu and the precise makeup of all of the food and beverages (and other items) available on the menu. Tinker with any one of those things, and you dilute the consistency, and therefore the strength, and therefore the value of the brand. By allowing different franchisees to “go their own way” the franchisor is, in effect, breaking its promise to the consumer. It’s kind of like saying “you can’t trust us anymore to deliver our goods and services to you in a predictable way”.
For those Star Trek fans out there, you can think of the a franchise as the “Borg Collective”. The entire organism must think and act with one mind. That does not mean that the individual creativity or initiative of franchisees must be eradicated. On the contrary, good franchise systems have means to receive, assess and implement good ideas from the field. It may very well be that your cookies can be integrated into the brand. However, before the brand can be adjusted, the item in question must be itself tested for consistency, appeal and marketability. If you’re looking to sell hot dogs, your franchisor is more likely to say “that is so far outside of the concept that we won’t even consider it”.
Remember, as a franchisee, while you do retain individual responsibility for the conduct of your business, you do not have carte blanche to operate it in any way you please, and the franchisor has the right and a responsibility to all of the other franchisees of the system to maintain a consistent image and methodology. If total independence is what you want or wanted, then you should not get into franchising and if you are a franchisee, you should sell your business. When purchasing a franchise, your expectation should be that your franchisor knows more than you do. You are also buying into something where the actions of others can positively or negatively impact your business. For instance, if other franchisees within your system don’t keep their washrooms clean, that will (according to my wife) have a decidedly negative impact on your business – even if you keep your washrooms spotless. This is because customers who have never been to your location will assume that you have the same standards of cleanliness as the other franchisees in your system.
On this franchising issue, “all for one and one for all” makes sense.
Franchise Branding - To learn more about this author, visit Peter Macrae Dillon's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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