What these contributions end up paying for differs from company to company, but it usually covers all costs relating to the marketing of the brand. This may include salaries for the marketing team, national advertising campaigns and any costs associated with local marketing.
As an example, at Ocean Basket, the franchisee marketing contributions also fund any research we do, such as customer specific research or product innovation. We also use marketing funds to pay for the design and printing of menus and in-store marketing support. Ultimately, we ensure that all marketing contributions are spent on franchise marketing in some shape or form.
One of the biggest advantages to belonging to a strong franchised brand is that as a franchisee you become part of a business that customers instantly recognise. If the brand is loved and has loyal consumers, it helps you run a highly successful business - as long as you adhere to the brand standards.
As a franchisee, you also benefit from national promotions, which ultimately help drive feet into your store. If you were to try to use your small franchisee marketing contribution and do a bit of advertising by yourself, you would not benefit from the larger sum of money that has been pooled together and so your overall reach would be much smaller.
In terms of knowing how your franchise marketing contributions are spent, most franchisors have franchisee councils that represent franchisees on a national level. The franchisor will consult with them and share any marketing plans, which turn is shared with the rest of the franchisees.
Belonging to a franchise means that you get the benefit of having experts on your side. Franchised brands usually employ marketing professionals who develop strong strategies based on consumer needs, trends, business objectives and the company vision. They then translate these into communication strategies that deliver optimal return.
