Markething Strategies in Franchise Bussines

Marketing business sales

When a company decides to franchise its business, the questions that normally arise are what should be its marketing plan and how to get the right franchisee.

We can say that the marketing plan is the most important part of a franchise business plan. It is a part of the overall business plan and it should be clear, quantified, focused, realistic and agreed by all the parties concerned.

It’s a plan focused on product, audience, awareness and delivery. Without a workable marketing strategy, a brand franchise could die in the midst of a brand new competition which is now beginning to emerge.There are some marketing strategies that can be done to support the development of your franchise product marketed.

  • Recognize the behavior of your potential customers and markets – that way you can determine how the most appropriate promotional strategies to market products that you follow the franchise.
  • Ensuring Brand and unique look of your business – try to keep the appearance of products as well as offering a brand that is truly unique and exciting, so that consumers do not hesitate to drop by at your outlet.
  • Use mass media campaigns – radio, television, tabloids,newspapers, and many more electronic media and other print media that you can use to promote the franchise.
  • Position yourself a a solution for your consumer problems – customer loyalty will be build to strengthen your brand.
  • Direct approach to the consumer – ask consumers to writes comments and feedback.

These strategies and techniques should help you give you some ideas for marketing your franchise and franchisees.The contact with the franchisees is very important.

They are in the front line of the operations so they can recognize the behavior of the potential customers and help the franchisor  to ensure his brand and the unique look of the franchise.


One thing you should have on your mind while planing your marketing plan is that the repetition of a customer experience is fundamental for creating a successful franchise.


Factors driving franchise growth

Franchise performance drivers are:


1. Consumer Value Proposition

2. Consumer Brand

3. Franchise Model

4. Franchise System

5. Franchisees’ Performance

6. Franchisors’ Performance

7. Franchise Brand


Consumer Value Proposition

The key to success in any franchise system is, and always will be, the success of the franchisees. With that in mind, one of the most important things for a new or established franchisor to do is constantly strive to improve the value of the proposition at a consumer level.

The more the franchisor does to improve the core value proposition, the better each franchisee’s financial returns are likely to be.

The franchisor should strive to impress on franchisees the importance of high consumer satisfaction levels. Feel good statements will not be sufficient.

Validation through objective review directed through measurable outcomes is needed to lift the awareness of franchisees to the importance of a Consumer Value Proposition. Many franchise systems are now closely analysing their key performance indicators and directing these to measure consumer value with significant success.

Consumer Brand

The Consumer Brand is the basis of the relationship between the brand and its consumers.

Branding as a concept is often confused with aspects which make up the totality of branding. Franchisees need to be educated on the importance of focusing on branding as a continual reinforcement of the perception of the franchise system and its products.

It is often difficult to quantify or explain the branding of a particular franchise system and its products, due to the fact that each consumer will have a different interpretation of how the franchise affects that person. It is important that the franchise system clearly identify which group will represent their primary customers and which group of customers the franchise system wishes to target to expand its reach. The Consumer Brand will need to be accurately modelled on this target group.

Franchise Model

The Franchise Model encompasses all the elements that set a particular franchise apart from the generic business model utilized by its competitors. The Franchise Model must add significant value to every process and business activity, rather than following a template of assumptions.In developing the Franchise Model, particular focus needs to be made of the goods or services marketed by the franchise system. Where these items are subject to change due to technology, competitive forces or government regulation, the Franchise Model will need to include contingency plans and anticipatory strategic programs to allow for this change.

Franchise System

The Franchise System includes not only franchisee and franchisor manuals, but systems, procedures, management tools and resources that combine to deliver industry-leading performance achievements in every aspect of the operation of the franchise. The procedures to be followed by franchisees on a day-to-day basis are a major interface between the franchisor and the franchisee.

Franchisees’ Performance

The franchisees’ performance relates not only to the usual financial performance criteria, but also to the way the franchisees commit to and consistently deliver the customer value proposition and consumer brand. Franchisees must be consumer brand champions.

Franchisors’ Performance

The franchisor’s performance encompasses not only the specific training and support functions that are carried out, but also as a brand guardian and as a caring, supporting franchise partner.

Franchise Brand

The franchise brand represents more than the procedures manuals and support service; it is the emotional bond between the franchisee and the franchisor. Unless the franchise brand engages the franchisees in a positive and natural dialogue, the full potential of the franchisees’ input will not be realised. The contribution of the franchisees to the success of the franchise can be cost-effectively harnessed by franchisors developing and nurturing the power of the internal franchise brand.Franchisors should be realistic and understand that many franchisees are constantly approached by other franchise systems to move to greener pastures. If a franchisee does not have a close affinity to the Franchise Brand, these offers will be considered carefully. Franchisors who fail to guard against their loss of a franchisee do so at their peril.


Buying A Franchise Business

Buying a Franchise offers many benefits over starting a business on your own. The franchisees benefit from the training and ongoing support that they receive whilst trying to  make their business successful. People starting a business on their own often have no help or guidance in the day to day running of the business!

The franchisees receive guidance on location, fixtures and fittings, marketing and operation of the business model. This guidance is based on years of experience the franchiser has gained not only from running the business model but also from advising other franchisees.

Buying a franchise business is at least a five year commitment and as such should not be taken lightly. It is important to make the right lifestyle choice rather than basing the decision to buy purely on profitability of the business model.

A prospective franchisee should always look at the market trends to ascertain whether the need and requirements of the products of the franchise opportunity are predicted to grow or decline over the medium and long term. Getting advice from an experienced accountant can help in this respect.

What makes the franchiser’s products better than the competition? Is the franchisor continually investing in improving the products to reflect changes in latest trends and requirements of the customers? Analyzing which products have been changed and new ones introduced over the last five years will help in this regard.

The territory is just as important as the franchise model. Not all franchises work in all territories as each area has their demographics and buying patterns. Decent knowledge of the local area is invaluable and the choice of which type of franchise business to buy should be made with regards to this information.

Making the right choice of franchise that is based on individual skills as well as the individual requirements of each particular territory should serve to ensure that the business model works both in the short term and the long term

Different Markets, Different Age, Different Size

The franchising industry  today has grown significantly and now represents such a broad spectrum of business concepts and market segments it has become nearly impossible to define any singular strategy, structure or method best suited for the task of franchisee support.With all this diversity it is no wonder there is no single answer for the effective delivery of franchise support.How does a growing franchise business deal with the inevitable organizational changes and development associates with an ever increasing number of franchise locations ? How can a mature established franchise organization further develop and retain top quality personnel ?

The answer to the questions above is “depends”. The advice may depend on how long the franchise organization has been in business or how many units have been sold.It may depend on how geographically wide spread the franchise locations are or just how difficult it is to learn and comprehend the business model.

The inevitable conclusion for developing a franchise organization is “one size does not fit all”.


What is “Effective?”

For the purpose of this report, the effective development of a franchise support organization is a process which involves a variety of both individuals and groups, it happens over an on-going amount of time, and it can vary wildly based on the type of business model or industry involved. We have already acknowledged “one size does not fit all” in terms of developing this organization, but just exactly how do we determine whether or not it is truly “effective?”

The most fundamental and broadly applied definition of the word “effective” is to “cause a result, especially the desired or intended result,” or alternately, defined as “successful, especially in producing a strong and favorable impression on people.”

In franchising then, the measure of an effective franchise support organization is defined by the favorable impression made primarily on the franchisee constituents and the desired results achieved by both the franchisees and the franchisor. Franchisee and franchisor satisfaction with the quality and quantity of support, along with both network-wide and individual-unit financial success IS the definition of EFFECTIVE.

Franchising in Sweden

    The interest in franchising in Sweden has increased noticeably over the past few years. There are over 500 franchise organizations within Sweden and this number is growing by the minute. More and more foreign business concepts see Sweden and the other Scandinavian countries as an attractive market in which to establish their systems. What is especially exciting, however, is the interest shown from the many young entrepreneurs in Sweden who see franchising as an efficient and cost effective way to spread their business ideas. Many of the new generation´s business owners do not have the prejudices against this business model that characterized previous generations. As organizations attempted to reduce operating costs during the most recent recession, bottom-line factors played a role in companies searching for lower cost alternative.