Overcoming Franchise Marketing Fees

If you spend any time on franchising and business related forums, then you are probably aware that one of the biggest gripes, especially amongst small franchise owners, is the expense of ongoing marketing fees. For the big hitters, like major fast-food chains and the like, that money is obviously well spent on pricey national marketing campaigns that are highly visible and highly effective. For the smaller companies that either don't advertise on as grand scale there can be a perception that the ongoing cost of marketing fees is money wasted by the franchisee who doesn't perceive any benefit received.

Understanding Your Franchisor

The bulk of this disenfranchisement comes from not understanding the franchising organization and not having a strong grasp of marketing techniques. A smart investor will endeavor to understand his or her prospective franchisor's marketing strategies prior to contracting with them. This can help prevent misunderstanding from happening further down the line.

There are a number of successful marketing techniques used by smaller businesses that are not as visible. Such strategies such as narrowing the focus of advertising by advertising in industry and demographic specific journals is effective but not as visible as national television campaigns. Techniques such as search engine marketing work subtly to draw attention to the company without the use of splashy and costly advertisements.

The point here is, just because you don't see the advertising happening in traditional ways doesn't mean that it isn't happening or isn't being effective. Any franchisor who wishes to succeed knows that the company has to promote its franchises aggressively. If you have concerns about your franchisor's marketing techniques then ask about them and find out how you can be involved in suggesting marketing strategies. Many franchisor's are more than happy to listen to the views and needs of their franchisees.

Getting Involved

The degree to which franchises are involved in marketing varies from franchisor to franchisor. Some franchisor's hold absolute say over all marketing decisions. Others allow input from franchisees either directly or through volunteer advisory boards. Understanding the degree of franchisee involvement should be part of the initial research done before contracting with the franchisor.

At the very least, striving to understand the marketing techniques of the franchising organization can help alleviate some of the ill feelings about ongoing marketing fees. If you take the time to ask and research you may find that the money is being used more effectively than you assumed. Again, the franchisor's best interest and the franchisees' best interest are the same in this area.

Obviously, the franchisor has a pretty decent handle on marketing or the organization wouldn't have appealed to you in the first place. Does that mean you should blindly agree with every move your franchisor makes? Certainly not. However, it does indicate that it may be worth looking a little deeper than the surface appearance of the marketing strategies of the franchisor. Your franchisor may have ultimate say, but that doesn't mean you aren't entitled to know how your money is being spent for your business's benefit.