You have a Right To Expect More in Franchising by David FarmerPart 1 of a Series
We all know that it is a new world for potential franchisees. We have come a long way from the days when owning a franchise was a choice only between frying chicken and flipping burgers. The latest statistics indicate that there are more than 2,400 different franchise opportunities in 75 different industries in the U.S. alone.
That means franchises touch almost every aspect of our lives today. There are franchises for mobile vans that groom poodles. There are franchises that focus on our personal fitness and health. There are franchises that pick up the junk we no longer can use. There are even franchises that help us sell it on eBay.
Franchising is limited only by our own creativity. If the list of opportunities for prospective franchise owners is any indication, creative thought in this vital aspect of American entrepreneurship is limitless.
Along with the many new opportunities have come new ways of thinking about the relationships between franchisors and individual operators. Technology has become one of the most important keys in selling franchises.
It's not just accounting or inventory technology anymore. Franchisees are looking for marketing technology that can help build their business and take full advantage of the knowledge and experience of the franchisor.
There are two questions that prospective franchise operators usually ask when they are considering the pros and cons of various companies:
How are you going to help me get customers through the door if I choose your franchise?
How are you going to make my brand more appealing than the others?
But there is a third important question that should be added to this list: What are you willing to provide that will enable me to do my job better?
The first two questions can be answered by reviewing the way franchisors brand and market their products and services, build their public identity and create goodwill and positive customer response. Effective advertising campaigns, attractive packaging and consistent messaging all help franchisees get the return they desire on their investments.
However, operational excellence is critical to day-to-day business. Good franchisors - those that franchisees should be seriously interviewing - need to have quality systems in place that offer complete training for the franchisees and their employees, an effective network for delivery of marketing pieces, advertising, displays and signage, and a catalogue of the individual requirements of all franchise outlets.
Competition makes it vital for franchisors and franchisees to have fast and accurate communications systems in place that work effectively. That allows companies to know their franchise operators and to understand what they need to be successful and responsive.
MARKETING MUSCLE
Franchisees also want - and have a right to expect - to benefit from the marketing "know how" that has made the franchise so successful. That is why marketing and technology no longer are separate entities in the world of franchising. The new technology of marketing is coming together in more ways than ever and in more ways than franchisees have ever considered.
Uniformity of message and appearance are critical to the success of any franchise marketing campaign. Sure, as a franchisee you want to say what you want to say to your audience when you want to say it, but you don't want to make the mistake of saying it in a way that contradicts the very brand for which you have spent so much money to become a part. Consistency is key, as is the speed of delivery of the message.
There is marketing technology that many franchisors are using today to connect franchisors, creative agencies and franchisees together to work at maximum efficiency on marketing needs.
Such systems can dramatically speed up the process and ensure that everyone is operating on the same page. They allow headquarters to stay in touch with franchise operators. And they eliminate a tremendous amount of waste by maintaining information about each franchise outlet and its needs for sales and marketing.
Technology has become one of the most important aspects of the franchise relationship. |
Here is a good example of a marketing disconnect when the central office of a franchise doesn't know the franchisees' stores.
My wife once worked in the shop of a well-known women's apparel company. The company launched a major national marketing campaign that included expensive window displays. The franchisor sent three displays to her shop - but there were only two windows. She asked if she should mail the costly material back, but was told that postage to send it back was too expensive, and to just throw it all away.
Like many franchisees in similar situations, my wife felt that the franchisor didn't care about her store, was not being a good franchise partner and, ultimately, was wasting her money. Franchisees want to feel that they are part of the franchise family, and the most successful franchisors foster those feelings with systems that include marketing technology.
Online collaboration tools are systems that help franchisees understand the important role they play in marketing, and it allows them to see the advantages of their partnership. Plus, it can encourage them to bond with other franchisees when they realize the success that comes through working together.
HIGH EXPECTATIONS
With so many alternatives for prospective franchisees, you have the right to expect franchisors to invest in technologies and marketing tools that will help you to stay abreast of the competition.
Look for a franchisor whose technologies, systems and structures will make you feel part of a team as your business grows. After figuring out what you want to do, your next goal as a potential franchisee is to be sure that you are entering into a partnership with a company that is prepared for the challenges ahead.
Is it unreasonable to think all franchise companies should be up on the latest technologies and willing to have the right tools to make certain marketing campaigns are effective? No. That's a big part of what you are buying.
This is an opportunity to be a true partner with your new franchisor, which means that there will be some rules you have to follow. If you feel a franchisor's rules are too restrictive for your entrepreneurial spirit, maybe that franchise isn't the one for you.
Move to the next step. Find out what sort of training program the company offers prospective franchisees. Is it only a two-week session with no follow-up or any additional information provided via the Internet? Or is it ongoing training with regular updates and a real person who calls you to check in?
Does preparation include crisis management training and a commitment to follow through if a serious incident occurs at your store? Is there separate training on every system so that you can absorb each one before you move to the next?
Ask how the company markets its products. Does it have a comprehensive plan that is presented uniformly throughout the franchise cities? And does the promotional material that will be sent to you work effectively with the campaign?
These are certainly exciting times for the franchise industry. A whole generation of Baby Boomers is reaching retirement age and looking for additional financial outlets. More and more, they view franchises as a good way to supplement their income from pension funds and 401K plans. Franchising is both fun and profitable, but I urge you to consider well before you make a final decision.
Look for a franchisor whose technologies will make you feel you are part of a team. |
I have spent 20 years in marketing and have witnessed a significant evolution in the business of franchising. Through technology, franchisors now have sophisticated systems in place that give them a direct line to their franchisees and a much more effective way to deliver their products and message. If used correctly, online collaborative tools can make franchising easier and more successful then ever before.
David Farmer is founder and chief Executive officer of Ad Giants, a Dallas-based company that provides process management systems for marketing and advertising.
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