What's in a name?
investing, it’s not unusual for them to ask themselves: “Why not just set up on my own?” The answer is twofold. First: why not, indeed? If you are the kind of person who will have diffi culty following a tried- and-tested business model and wants to strike out on their own, then perhaps the independent route is for you. Second: because franchises are statistically more likely to succeed than startups. There are a few reasons why this is the case but the most signifi cant is that you are working with a recognised brand in its fi eld or market.
W
The benefi ts of working with a brand According to Ashtons Franchise Consulting, the relationship between franchisee and brand is defi ned as: “Franchisees typically operate under a brand name and image, which is nationally or internationally recognised, promoted and respected. This accelerates local market uptake and business development and reduces customer acquisition costs.” So far, so good, but what else is in it
for you?
1. The customer or client knows exactly what to expect Consumers are extremely loyal to names that they know, love and can rely on, often
hen potential franchisees are researching the franchise industry with a view to
at a subconscious level. The trust between customer and product or service has been built up over years and is something that you can instantly take advantage of.
2. You already have a marketing strategy in place Companies allocate budgets worth hundreds of thousands of pounds, if not millions, to marketing. When you’re working with a franchise, you are receiving the direct benefi ts of this spend.
3. Your franchisor is fi ercely protective of their brand Because you are becoming part of, and trading on behalf of, an established name and reputation, it is in the franchisor’s best interests to train and support you to deliver their product or service to the standards that have ensured its success so far. For this reason, franchisor support tends to be very strong and a franchise brand will be able to help its network at any given moment. Suzie McCafferty of franchising
consultants Platinum Wave agrees that having a known and successful name behind you is one of the main drivers for new franchisees. She says: “Brand recognition is undoubtedly one of the primary reasons for choosing an established franchise over setting up on your own. Imagine being able to own and run a business where your potential customers already know exactly who you are and what you do before you even open your doors!
“There is a fl ipside to this, however, which should always be considered when choosing a franchise – as a franchisee, you are somewhat at the mercy of the brand’s national or global reputation. Your potential customers might indeed know who you are and what you do, but may have already made up their minds that it’s not for them. But you can’t please everyone and, on balance, it is a far better sales and marketing advantage to have brand recognition than to not. “There's never been more places
or ways to buy products or services and people are defi nitely more confi dent spending their money on a known quantity with a track record. That’s exactly the advantage the power of brand recognition brings to a franchisee.” Lorenza Fedele, marketing and
communications manager at Esquires Coffee, imparts the franchisor’s point of view: “When you are looking to franchise in a marketplace that is busy and popular, it’s imperative you choose a brand with positive associations to its name. Do you want to stand out in that market? Ask about the company's ethical stance and its sustainability commitment, as well as whether it considers its impact on and place within the local community. It’s something we are very conscious and vocal about at Esquires Coffee.” Here are just some of the brands within
the franchise industry that stake a claim on their good name.
à
BUSINESSFRANCHISE.COM 41
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84
