Bernard Jansen, marketing consultant and founder of Firejuice, explains what to consider from a marketing and branding point of view before buying a franchise.
When you own a franchise or are the exclusive license holder for a brand in a territory, you inevitably understand the importance of marketing to drive sales, but often miss the critical role it plays in brand building. Long term, you need a strong brand to build a franchise.
Many franchisees think they inherit a brand from the onset and only need to worry about sales. While it may be true for well-established brands, such as KFC or Nandos, it often does not apply to smaller brands brought in from abroad via licensing agreements, or a Durban based business franchising out to owners in Johannesburg and Cape Town.
As a franchisee, you should understand what you are, in reality, buying: a brand. But a brand is not a brand because it has a following overseas, or a cool logo, or a funky name or even because someone calls it a brand.
A brand is only a brand when customers recognise it as one, right in your area. The customer decides if it is a brand, and if they haven't made up their minds, you are either in deep trouble or have lots of work to do.
The problem is that most franchisees are unprepared when it comes to brand building. The fact that the franchisor, or owner in another territory, provides you with brand guidelines and marketing materials does not mean that now you can tick off the brand box. You still need to do the hard work of establishing it in the minds of customers.
So what should you do as an aspiring franchisee?
Too many franchisors sell licenses to entrepreneurs giving them rights to open the same business elsewhere, but without the same brand awareness. The result is almost always businesses that fail, or never really gaining traction - like a barbecue on a cold fire.
When you invest in a franchise license, make sure you also invest in a brand. If not, know one thing, your road to success will be twice as long