Franchising and the importance of Brand Profile

When I mention the names McDonalds or Dominos to you what do you think of? Do you think of a popular Scottish family name and a popular pastime played with little black wooden blocks? I would propose that for many people the first thinking in their head was actually two popular fast food eating establishments. This is the power of branding.

Branding is important in favor of the straightforward reason that a potential patron might already have a preconception on the subject of what to anticipate from a business. This could naturally perform both ways:-

Benefit of brand recognition in a franchise business

United with a franchise model, a strong branding can help to convince a buyer to your favour when choosing between a brand popular franchise or an unbranded option. This only works as long as a positive message is looked after across the franchise network regarding the brand reptutation to ensure that prospective buyers possess a favourable outlook of your business regarding probable value of products or services provided. Generally, consumers ought to feel comfortable to try any franchised outlet in the awareness that their expectations should be met about that brands excellence and service, even when they have not up to that time been to that outlet. The brands repute provides them self-assurance.

Disadvantages of brand name recognition in a franchise business

It is worth considering that if an isolated shop delivers inadequate service then this can tarnish the whole network in the buyers mind. In these days of collective networks and open online discussion, poor service can expand like wildfire. A broadly advertised Youtube video detailing a particular airlines inferior treatment of a travelling artists guitar demonstrates the ability of this direct communication and the impact it might have on a brand name. While the video was probably very funny for the 8 million odd people that saw it, the stocks in the air carrier bombed 10% once this film was released costing the company $180 million and inestimably more in lost customer loyalty. Just one example of how an isolated occurrence could provide exceedingly costly to an entire network.

Consequently what does this mean to me?

When thinking about franchise business opportunities, looking at the businesses brand history could be something you would do well to consider. What do shoppers think about the brand? What’s being said online in discussion boards and social networks? Though it is clearly advisable to adopt a well balanced view (as displeasure can often be articulated considerably more noisily than satisfaction), these elements can make a difference when determining where to put your hard earned cash. It’s worth remembering however that no one expects perfection, although they do demand wrongs to be made good swiftly and effectively.

Thoroughly measured, the branding of a franchise business may be of significant benefit, provides belief and attracts purchasers. Simply ensure you’re properly knowledgeable of what is being understood regarding the branded company and how the franchisor handles bad media.