For instance, they may hold a sweepstakes advertised in traditional media such as print, billboards, radio and TV while also running the promotion on Facebook, Twitter and other social media outlets. The internet options have given franchisors a low-investment way to reach masses of prospective buyers, allowing the smaller brand franchises to compete favorably with the bigger brands.
Public relations may be the most underused pillar of marketing. Traditionally, public relations campaigns would consist of press releases, press kits, sponsorships and other goodwill events and campaigns that would usually bring brand awareness through publicity.
In the internet age, we have found that public relations is still a very viable and important pillar that needs attention. However, the delivery has changed considerably, and in some ways technology has made it far easier to launch a successful PR campaign. An example of this may be a press release that in years past would have to be printed, put into a press kit and mailed to or news and other media outlets hoping that the individuals at those outlets would find it interesting enough to write it into an article or a category of one of their existing articles or stories.
It was difficult to measure success with this technique. Today, successful franchisors enjoy the ability to release their newsworthy articles via blogs and on industry and business startup blog platforms.
In most cases this is free, and the more creative and informational the articles are, the more traffic they will draw. This method is also measurable since the analytics can be evaluated at the franchisor level and fine-tuned. Many franchisors are still pretty new at online marketing -- this gives new franchisors with strong online marketing skills an advantage. Back then, the marketing and media options were very expensive, and the new emerging franchisors were priced out of the competition.
The internet has now leveled the playing field because the barriers of entry are lower, giving creativity and not big marketing budgets, the advantage. Consider the following benefits and tips when you develop your online marketing efforts:. Rick has been involved in the franchise industry since He franchised his first company and grew it to 49 locations in 19 states during the mid to late s. He served as the Chief Executive Officer and primary trainer focusing on franchise owner relations and creating tools and technologies to increase franchisee success.
Rick developed and launched his second franchise organization in During this period Rick served as a business and marketing consultant to small business and multimillion dollar enterprises.
He also consulted with franchise owners and prospective franchisees, franchisors, and companies seeking to franchise around the world. Contact Form You always want to give users the opportunity to fill out their information and contact you right away.
Your contact form needs to be easily found. Initially, you may only want to ask prospects for basic information name, email, states they are interested in opening a franchise in. How do you get prospective franchisees to give you their information? Give them a downloadable copy of your Franchise Opportunity Guide.
How will your franchise transform the lives of your perfect franchisees and help them achieve their financial goals? Remember, stay away from typical differentiators and stand out from the crowd. Start off with a solid base and build up your site over time. Franchise Opportunity Guide Some people refer to this as a franchise brochure.
Basically, it should be a digital guide about your franchise offering that prospects can download or print. You can hand these out at trade shows, such as the International Franchise Expo , and should have them readily available for good prospective franchise buyers. Video According to WordStream , there are staggering statistics that prove video is key for websites. Having a personal video introducing yourself and your franchisees can be very helpful to convert your leads.
No, licensing is not an alternative to franchising. Sometimes, either based on bad legal advice or a lack of information, business owners enter into a license agreement believing that it is not a franchise, and therefore they do not have to go through the franchising process. If the business relationship that you are entering into includes a the license of a trademark, b the payment of a fee, and c an agreement where you will have a level of control over how someone operates their business, the business relationship is a franchise and you will need to comply with the franchise laws.
Learn more about licensing versus franchising and the difference between them. If you have already sold licenses, the good news is you can convert your license system to a franchise system. If you are going to franchise the right way, you need to work with a lawyer who specializes in franchising and who is experienced in working with new and emerging franchisors like you.
The reason is simple : everything you will do as a franchisor — from franchising your business to selling franchises — is regulated by federal and state franchise laws and requires extensive coordination and integration into your FDD and the agreements between you and your franchisees.
A good franchise lawyer will be able to help you through each phase of the franchise development process and will provide you with franchise development insights and strategies that have worked for other brands. The good news is that there are some really good franchise law firms out there. The right lawyer for you should understand your brand, believe in your goal and vision as a brand and founder, and have the systems in place to guide and help you franchise the right way.
To learn more about selecting the right lawyer in our Guide to Selecting a Franchise Lawyer. Your FDD is a legal document that requires the integration of federal and state-specific franchise laws and regulations and should only be prepared by a qualified franchise lawyer.
If you have done a Google search about franchising your business, chances are you have come across search results that not only include franchise lawyers but also franchise consultants and franchise developers. While reputable franchise consultants offer valuable skills, their role should never be to prepare your FDD, register your franchise offering, register your trademarks, or guide the legal development of your franchise. Your franchise lawyer should work directly for you and be directly accountable to you.
Now that you have a solid foundation as to what franchising is all about and the steps involved, start building the right team to help support and guide you in franchising your business. Learn more about our Franchise Launch Program and how we help you create a winning franchise system or call us at The area representative will typically receive compensation based on a percentage of initial franchise fees and ongoing royalties paid by franchisees within the designated area representative territory.
Designated Territory — A designated territory, also sometimes referred to as an operating territory or protected territory, is a territory within which a franchisee is granted the right to establish and operate its franchised business. For brick-and-mortar franchised businesses, a designated territory is typically defined and measured as a radius or area surrounding the location of the franchised business.
For service-based businesses, a designated territory is typically defined as a geographic area within which the franchisee is authorized to offer and sell the services and products of the franchised business. Typically, a franchisor will agree to not authorize or establish a competing franchise within the designated territory. The scope of protection afforded to franchisees in their designated territory varies from franchisor to franchisor.
Development Agreement — A form of a franchise agreement that involves the development of multiple franchise outlets and locations by a single franchisee. Under a development agreement, a franchisee is typically assigned a development territory and within the development territory the franchisee is required to establish and operate multiple franchise outlets and locations.
The development agreement will include a development schedule that the franchisee must comply with. FDD — The abbreviation for franchise disclosure document. Federal Trade Commission — In franchising, at the federal level, the Federal Trade Commission is charged with overseeing and regulating franchise sales. Learn more about financial performance representations. Franchise Agreement — The legal agreement that creates the franchise relationship between a franchisor and franchisee.
Development agreements, area representative agreements, and master franchise agreements are different forms of franchise agreements. Before offering and selling a franchise, a franchisor must disclose its franchise disclosure document to its prospective franchisees no less than 14 days prior to signing a franchise agreement or receiving any fees from the franchisee.
The contents of a franchise disclosure document are broken down into 23 disclosure items or sections that are mandated by the Federal Trade Commission. Certain states have enhanced the requirements as to what information and disclosures must be contained in a franchise disclosure document. Franchise Fee — The initial upfront one-time fee that a franchisor charges a franchisee at the time of signing a franchise agreement. The franchise fee represents the initial license fee that a franchisee pays to become a part of a franchise system.
Franchise fees are typically used by franchisors to compensate themselves for issuing the franchise license and to absorb costs incurred by the franchisor in the franchise sales process and costs that the franchisor will incur in providing the franchisee with initial training and support.
Franchise Filing States — The franchise filing states are states that require a franchisor to file a notice with the state before offering or selling a franchise in that state. Some franchise filing states require annual filings and some require one-time filings. Franchise Laws — A combination of federal and state laws that govern and relate to the offer and sale of franchises and the relationship between franchisor and franchisee.
The franchise laws include the Federal Franchise Rule and an assortment of state-specific laws. Franchise Lawyer — A franchise lawyer is a licensed lawyer who possesses expertise and experience in franchising. The American Bar Association Forum on Franchising is one of the largest lawyer membership organizations focused on franchise law.
Franchise Registration States — The franchise registration states are states that require a franchisor to register its franchise disclosure document with a designated state regulator before the franchisor may offer or sell franchises in that state. Franchise registration states require franchisors to renew their franchise disclosure document registrations no less frequently than annually.
Franchisee — The individual or entity who purchases and is granted the right to operate a franchise. A franchisee will sign a franchise agreement giving him or her the right to establish a franchised business. Commonly, a franchisee will pay an upfront franchise fee to obtain the initial license and right to become a franchisee, and the franchisee will pay ongoing royalty fees to the franchisor.
Franchised Business — The business that a franchisee establishes and operates under the terms of the franchise agreement. Franchisor — An individual or entity that offers or sells a franchise. Through a franchise agreement, the franchisor grants to its franchisees the right to establish and operate a franchised business that is owned by the franchisee.
IFA members include franchisors, franchise suppliers, franchisees, and franchise professionals. The IFA is a franchising advocate for its members and is active in franchise education, networking, and legislative lobbying. Master Franchise Agreement — An agreement in which a franchisor transfers its rights in a designated territory as a franchisor to a third-party master franchisee. Within the designated territory, the master franchisee acquires all the rights of the franchisor and possesses the legal authority to directly sell franchises and sign franchise agreements.
Operations Manual — The confidential manual provided by a franchisor to its franchisees. Royalty Fees — Royalty fees are ongoing recurring fees that a franchisor charges a franchisee on a periodic basis, such as weekly or monthly. Learn more about our fixed-fee Franchise Launch Program and how we help you win at franchising.
To reach our team directly, give us a call at Introduction: What Is Franchising? Franchising is a legal and business relationship that can help grow your business. Below are links to help you navigate through the topics covered in this Ultimate Guide. How Do I Get Started? What are the Steps to Take to Franchise a Business? Instead, franchisors usually publish franchisee information on the franchise system's website. If a franchisee is permitted to create their website, they are usually required to link it to the main site.
Positive word-of-mouth from your customers is one of the most powerful methods of marketing your franchise. It is critical to maintaining a loyal customer base. Loyalty and reward programs tend to work well.
Special promotions and coupons are also popular methods of keeping returning customers. Finally, referrals are always an important part of a marketing package. Referrals can be exchanged with other business owners or via existing clients. An incentive program with existing clients, who refer new clients, is one popular method of obtaining referrals. Actively scan device characteristics for identification. Use precise geolocation data.
Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Franchises Basics. He is an experienced entrepreneur who has trained individuals to become Certified Franchise Consultants.
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