What is so good about franchising

What’s so good about franchising…?

It seems franchising has it all, but franchisors just need to shout a little louder, discovers Vesna Siljanovska

If you were to ask the average person about their understanding of a franchise they would probably say “a brand used across many different stores’ or ‘buying into a big company”. Although this is not entirely wrong, it certainly does not capture the essence of franchising and more importantly, it does not reveal the huge benefits of the franchising business model. So how can we overcome this… enter the power of PR.

Having a positive relationship with the public can be one of the most effective marketing tools available. If people like your business and they see that it is good, reliable and successful, then chances are your business will thrive. On the other hand, if you have had bad press, numerous customer complaints and the word has spread, rebuilding a positive image amongst the public is extremely hard and can take some time!

We’ve heard from many franchisors that one of the main challenges facing any franchise is finding new franchisees. The bfa/NatWest survey states that 65 per cent of franchisors believe that the “lack of suitable franchisees continues to be the main barrier to growth”.

Indeed, we’re often asked how franchisors can expand the pool of potential franchisees. In order to overcome this, the concept of franchising must be communicated to those outside the industry or those who are already sold into the concept if franchising is to continue to grow. For instance, more people should be aware that franchising is a proven business model, which deals better with difficult economies. Peter Stern, former Head of Franchising for NatWest, who saw the franchise industry through the recessionary times of the late 80s and 90s, said in his final word last issue: “Franchising can indeed be a safer way of doing business, as very few franchise systems failed and the vast majority of franchisees survived [during the recessionary times].” It seems all the good factors concerning franchising are staring franchisors in the face, they just need to be conveyed effectively to the general public.

Simon Dalziel, Franchise Director of Franchise Marketing Award winner Bluebird Care Franchise Ltd, explains that “the biggest challenge is to get the message across about the advantages of franchising as a means of starting your own business and not seeing franchising as either a ‘poor alternative’ or the franchise sector being full of companies ‘just wanting to take your money’.” One method of tackling this problem is to publicise success stories, which results in letting successful franchisees sell the franchise to others by telling their story, “third party selling at its best!” summarises Julie Pittilla, Managing Director of PR agency, Pittilla. Positive news about real people in franchising helps to dispel any fears about unethical franchising

If you’ve got it flaunt it
Your current franchisees are extremely valuable when it comes to not only marketing your franchise brand, but also promoting the benefits of the franchise industry. Nicola Parsons, Marketing Manager at Tumble Tots also a Franchise Marketing Award winner, says: “People are likely to believe the success stories of franchisees rather than what a franchisor might say. Therefore every success story has to be told to the local, regional and national press.” She also recommends “at franchise exhibitions, have at least one franchisee on the stand so people can question them about the business from a franchisee’s perspective. The more franchisors can prove the successes of their franchise networks, the more positive the reception will be to franchising.”

When it comes to promoting the benefits of franchising, Julie encourages franchisors to provide training and support to their franchisees, particularly as “most franchises operate by their very nature on a local level. The franchisee can cultivate the local press, organise promotional offers through the editorial sections of the local papers, join in with local events and sponsorships, and place local success stories where relevant.”

Co-ordinating your franchisees to generate PR coverage can be achieved through internal communication, according to Nicola. This is a great method of supporting and encouraging franchisees to work within their local communities to generate publicity. She explains: “Internal newsletters can communicate successes within the network, [including] business and operational tips to keep franchisees aware of business solutions and making news of small successes locally and regionally so that everyone can read about the success of franchising.”

Spread the word
The PR campaigns at Tumble Tots, which include National Children’s Activity Week, Positive Parenting Week and Eat Fit Keep Fit, have attracted big brands in promotional activities, including pack promotions in supermarkets. What makes these campaigns so successful is, firstly, they have a national appeal, which interests the national press, and secondly, they unite the franchise through one campaign, creating a strong franchise brand. Nicola adds: “[These campaigns] give potential franchisees an insight into the amount of support they are going to receive when they take on the franchise.” This also reveals that a well thought-out PR campaign can generate revenue through sponsorship, free publicity and promote a strong franchise brand.

It is also important to consider PR coverage within your industry sector. Julie reveals that for one of their clients, dietcare, franchisee success stories are also promoted in women’s media, particularly as the franchise is suitable for women who want to incorporate a flexible business into their work-life balance: “Our coverage on a national level has gone through daily newspapers as well as health orientated media such as Zest and Healthy.” Similarly, Hayley Rissman, Marketing and PR Executive of NBC Bird and Pest Solutions, says how many of NBC’s existing franchisees are already keen falconers, therefore they have started to focus on generating PR within specialist publications. Hayley says: “NBC has successfully recruited franchisees from campaigns that have been featured in online falconry forums, countryside magazines, pest control publications and local newspapers. By advertising in a variety of publications, this introduces franchising to a market of people that have not even considered it in the past.”

With any press coverage, always remind the reader of not only the benefits of your franchise, but also why they should choose a career in franchising. We all know that it is a proven business model where you have the freedom of running your own business, but with the support of the franchise network, and not to mention working within an industry that continually grows in value. Clearly, the franchise formula has got something right and if franchisors do more to make this known, then the result will be, as Simon summarises; “more franchisees and more franchisors! People see the benefit of starting their business through a franchise system and companies can see the growth of their brand that can be achieved quickly through franchising.”

The message is simple: explain, shout about, reveal and even show-off all the good things about franchising to as many people possible using PR. The more people know about franchising and the benefits it has, the more chance you have of securing new and enthusiastic franchisees!