Being part of an established brand is often one of the most important and overlooked aspects of joining a franchise. Derin Clark looks into why branding is so important in determining the success of a business
The fact that you have picked up this magazine and flicked through the pages shows that you probably have some interest in starting your own business. If this is the case then you might already know about the advantages of launching a franchise business over a start-up.
What you may have overlooked, however, is the many benefits of opening an established branded business has over creating an entirely new brand. Most franchises involve doing just this and to give you some idea of how much this could impact the success of your business here are a few of the advantages of being part of an established brand.
Launching a business under an existing brand means that many potential customers will already recognise the brand and the services or products it offers. This means that, unlike with start-ups, you will not have to spend the first few months letting people know you exist and what you can offer them. Instead you just need to let them know you have opened and can concentrate on growing your customer base.
Brand recognition is so important that many franchisors can charge higher investment fees just because they are a well-known brand. For example a McDonald’s restaurant is one of the most expensive franchises to purchase. This is not only due to it being a restaurant-based business, which is traditionally a more expensive sector to invest in, but also because the McDonald’s brand is so strong that its franchise owners are happy to pay more to purchase its branding rights.
Marketing and advertising
As many customers will already be familiar with the brand when you open your new franchise business you will not have to spend a lot of money on advertising and marketing campaigns to get your brand message across. This will already have been done by the franchisor. Instead your branded shop, website, stationery etc. will act as an important advertising tool for you.
Although nearly all franchise owners will need to spend some time and money advertising their services and products to potential customers, the owner of a well-branded franchise business will find this a lot easier than those with start-ups. Also, as a franchise owner, you can usually expect to get advice and guidance from the franchisor about what marketing methods work best for your business.
Many well-established brands will have built a relationship with their customers over a long period of time. These brands will be a trusted and familiar business or retailer and will be the place many people immediately think of to get a particular service or product.
This sort of relationship between a business and consumer takes years to cultivate, however by investing in an established brand, a franchise owner can tap into this history from their first day of trading.
Clearly branding is an important part of owning and operating a successful business. Many well-known brands will have spent a lot of time and money on making sure their branding reflects the company, its message and its personality.
Franchising is a great way of gaining access to this already established branding and your franchised business will reap the benefits from the first day of trading.