There are numerous advantages of franchising. Learn why the use of a well-known brand name with an established reputation is one of the most important benefits.
First impressions are crucial. For a business, that first impression is guided by brand awareness, and often the brand name itself carries a great deal of weight. A brand is more than just a logo, jingle or color scheme. It’s everything consumers know (and think they know) about a business and the experience they perceive they will have.
There are several advantages of franchising, including the ability to use a nationally recognized brand name. In fact, the brand is one of the most important and powerful components of franchising. A powerful brand attracts customers to the franchise network as a whole, not just a single location. It is invaluable for both franchise owners and franchisors.
The Power and Importance of a Franchise Brand
No matter what product or service a business provides, building a strong brand that’s widely recognized is critical. In a franchise network, brand awareness impacts both the franchisor and franchisee. Here are four reasons why the power of the brand is so vital for entrepreneurs when opening a franchise business:
It attracts customers. Effective branding not only raises awareness of the products or services offered but also sets expectations in the minds of potential customers regarding the experience they will have.
It attracts franchisees. A strong brand has a reciprocal benefit. The loyal customer base it creates generates more business for all its franchise locations, which helps to reduce the start-up risk and to encourage more entrepreneurs in opening a franchise business.
It is a differentiator. Competition in the marketplace can be fierce, making it critical to stand out from the crowd. A strong brand not only helps differentiate a company and its products or services but also increases customer loyalty and keeps the brand top-of-mind when potential customers seek out products and services.
It increases the value of the franchise. A powerful brand fosters consumer awareness and loyalty, which increases demand for more locations, thereby increasing the value of the entire franchise system.
It takes time to nurture and grow a popular, recognizable brand. Brand awareness is a major advantage that potential franchisees consider when learning all about franchising, and inherit when opening their own franchise business. Consumers can count on a certain type of product or service and the experience they will have at any location within the franchise network, no matter where they are in the world. In other words, franchise locations are the brand. When a customer experiences one location, they are experiencing the brand itself and therefore have an expectation of consistency on subsequent experiences.
New or small franchises may have little or no brand awareness to rely on to bring customers through the door, but this doesn’t necessarily mean investing in a new or small franchise business shouldn’t be considered. It’s important to be mindful of the brand’s reputation, metrics and other implications, as well consider both the advantages and disadvantages of franchising. Smaller, less well-known franchises do offer an opportunity to get in on the ground floor of building brand awareness and franchisees can gain satisfaction from helping the brand grow, but they and the rest of the brand ecosystem must work harder to build a strong brand from scratch.
Hallmarks of a Strong Franchise Brand
Regardless of its size, brand awareness is essential for growth. Hallmarks of a strong franchise brand include the following:
- Established brands should have strong brand recognition and a reputation for excellence. New or small brands should have a solid strategic plan for building brand awareness and loyalty.
- New or established, the best way to build a brand’s reputation and attract loyal customers is by delivering a world-class customer experience. Well-known brands focus on creating great relationships with customers and earn their reputation one customer experience at a time.
- A great franchise knows the work is never done and should continue to grow brand awareness with consistent, ongoing marketing campaigns at the national, regional and local level.
- The franchise system should provide local marketing support to their franchisees with location-specific materials, templates and tools to maintain a cohesive brand look, tone and feel.
- To maintain brand consistency, the franchise should provide all the assets their franchisees need for use in marketing like fonts, colors, logos and images along with usage guidelines.
Benefits of Franchise Branding
Great franchise systems provide extensive training and several tools like marketing plans to help their franchisees build their own business. This support and expertise are among the many unbeatable advantages of franchising. Proven marketing strategies allow you to promote your business from day one without having to rely on trial and error to find what works for your business or the brand itself.
National or regional marketing support is also an instant advantage of franchising since many small businesses can’t afford that kind of broad exposure. In addition, franchise marketing plans guide you along the way from the very beginning, so you can focus on daily operations and developing strong customer relationships, rather than starting with basic brand awareness.
Profitable franchises have at least one thing in common – they have built robust and widespread brand awareness. Having a national brand name on your side when you open a business is a definite advantage that should factor into your decision on choosing a franchise brand. When opening a franchise business, there is no need to market tirelessly to build brand awareness; a franchise has an established reputation from the very beginning. Also, access to national marketing and advertising campaigns offer peace of mind knowing you have instant access to a customer base that is already familiar with your brand and what it offers. Often, customers are anxiously waiting for a franchise location to open in their neighborhood to give them convenient access to the products or services they desire. A brand name speaks volumes, which is why brand awareness is one of the most important advantages of franchising.
Brand Awareness and The UPS Store
When considering whether to invest in a franchise business and all the other important details like the average cost of a franchise, franchise agreement terms, marketing support and more, brand awareness is a critical consideration. In fact, it’s one of the top 10 reasons to invest in a The UPS Store franchise.
When entrepreneurs choose to become part of The UPS Store network, they join forces with a strong brand name that is already top of mind with consumers and businesses alike. Ranking consistently in the top of Entrepreneur’s Franchise 500 list for over 30 years, The UPS Store provides franchise opportunities to business-minded professionals along with the brand values, support and training to support them along the way.