There are many good reasons to pursue opportunities in franchising, however one of the most typical is for brand recognition.
Individuals who want to start their own businesses trade off a certain element of control over the operation of their business in exchange for the security of an emerging or established brand that, ideally, customers associate with a certain level of quality.
However, for the franchisor to ensure that consistency for the brand across the city, province or country, certain system controls have to be in place, and this becomes particularly apparent in the area of advertising.
Franchisors need to be certain that any advertising being conducted by a particular franchisee does not vary from the message and brand that the franchisor has expended time and resources to develop and sustain.
As a result, most, if not all, franchise agreements will stipulate that all of the franchisee’s advertising activities must be approved by the franchisor, as well as typically requiring a certain percentage of the franchisee’s gross sales to be spent on advertising. Read more.