Compare the marketing
Don’t forget to ask about PR, advises Lindsay Jones
There’s a wealth of advice out there on how to choose a franchise, but very few people mention one of the most important aspects that should be put into the decision matrix – what kind of ongoing marketing support will be available from the franchisor? It is a well-known fact that buying into a proven business model gives you a head start but, regardless of whether you have started up from scratch or bought a franchise, you still have to market your products or services to generate sales.
Marketing is an essential aspect of running a business yet it is an aspect not widely considered when buying a franchise. For some people marketing comes naturally. Prospective owners with a sales and marketing background may be more confident in this area of running a business.
But if you don’t have any previous experience in promoting a business, marketing will be something you have to buy in locally or create from the resources provided by the franchisor. And this is where it pays to take the time to find out exactly what level of marketing and PR service you could expect from your shortlisted franchise options. The support provided can vary greatly from franchise to franchise.
Most franchisors will offer a limited amount of marketing assistance to help launch your business, but what happens after that? When the balloons have gone down, the newspaper containing your advert is in the recycling bin and the franchisor has left you to it after the initial mentoring period, what then?
Some franchisors offer a basic support package that may be literature only. As part of the initial fee you’ll get a suite of marketing collateral but after that you could be left to your own devices. This might be adequate if you come from a sales and marketing background but nowhere near enough if you are a marketing newbie. Does the marketing support include helping you with local PR?
Many franchisors are good at promoting the brand and the franchise opportunity itself but what help do they provide for franchisees to promote their business locally? PR is one of the most effective ways to publicise your product or service within your own community, yet very few people put this on the checklist of things to ask about when interviewing the franchisor. Several franchise organisations, including Recognition Express, Revive! and Petpals, incorporate what is known as a central marketing fund within the model. The way it is structured varies from franchisor to franchisor but the principle is broadly the same.
Franchisees pay into the fund on a regular basis and the cash is spent on marketing activities that benefit its members. This pot of money is usually managed by a committee of franchisees, who have a big say on how the money is spent. For example, at Revive! the central marketing fund has enabled the franchisees to sponsor British Touring Car Champion racing driver Andrew Jordan.
At Recognition Express, the fund supports major PR campaigns including running an annual competition in conjunction with the road safety charity BRAKE, whilst Petpals’ fund supports website development specifically for its franchisees. All three provide on-demand access for franchisees to outside PR, incorporated as part of their central marketing fund contributions. Whilst this may look as if the franchise will cost you more, in reality you get a very good deal if a marketing fund is in place.
This is because PR and marketing are relatively expensive services to buy in. For a start-up business, hiring marketing help is financially out of the question. Through a central marketing fund you can access resources that would cost you multiples more than your monthly fee if you had to pay the full cost yourself.
As part of your fact find you’ll be invited to speak with other franchisees about the opportunity and their experience of being a franchisee. This is a good opportunity to enquire about the level of marketing support available and if there is a central marketing fund. Whilst a monthly fee towards the marketing and PR could feel expensive, the impact of not doing enough marketing could have a far greater negative impact on your business. It is well worth taking the time to find the franchise opportunity that suits you.
Successful franchisees promote their businesses well and successful franchisors know that an important part of helping owners to succeed is through providing not only a first-class franchise model but also by offering ongoing business support, which includes top-quality marketing and PR.
Lindsay Jones is managing director of LJPR, a PR consultancy with a specialist franchising division. A trained journalist, she holds a masters degree in public relations and has been working with clients in the franchising industry for over 10 years.