5 Ways to Spot Franchise Marketing Success

Before you invest in a franchise, make sure their brand brings in customers.

There’s nothing worse than investing in a company as a new franchisee, only to find out that the company you thought to be a sure-fire great investment was struggling to drive business through the doors.

In franchising, one of the greatest strengths is centralized marketing – pooling money from all franchise locations to leverage greater marketing power.

But before you sign your franchise agreement, keep an eye out for certain things. Here are 5 Ways to Spot Franchise Marketing Success:

1. It drives customers through the doors. The #1 question to ask a franchisor: Does your marketing bring customers to all regions? What are their strategies? Find out what ideas they have coming up, and track how recent marketing strategies have affected sales.

2. Franchisees’ ideas are incorporated. Great ideas often comes from great teams. That’s why some of the most successful franchises seek marketing input from their franchisees, to better strengthen their strategies. If a franchise has some sort of marketing bridge between franchisees and franchisors – such as an advisory group – it’s a good sign they take franchisees’ ideas seriously.

3. It allocates money effectively. From the marketing fund, money needs to be allocated into three key areas: (1) internal/external costs of administering ideas; (2) cost of producing marketing materials; and (3) advertisement costs. If a company is spending too much in one area than other, it’s a sign their marketing efforts aren’t being conducted effectively – which could have a major effect on sales.

4. Marketing plan and strategies are well documented. Marketing strategies with significant thought and effort put into them will be well documented. They’ll have drafts, ideas, and formalized presentations of them available. While a franchisor won’t hand everything over to a franchisee, they will likely give you the skin-and-bones of it to ensure you have a good understanding of the level of effort they put in.

5. Check with franchisees to see if marketing works. There really isn’t anyone better to ask than those benefitting (or not benefitting) from a franchise’s marketing. Find out if different marketing strategies have had an effect on sales, and whether they have any concerns.

To learn more about entrepreneurship through franchising, attend our free monthly webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.

You may also register by calling 866-246-2884.