Strategies for Success
A brand is far more than just names, logos or slogans. A brand represents a business’ unique identity, values and reputation. This will have been cultivated and earned though investment, innovation, marketing and customer experience to nurture success and loyalty in the marketplace.
Franchising is a tried and tested route for international growth and expansion. It can provide access to local market expertise and investment with a quicker return on investment than a simple corporate expansion. It can reduce the burden on the brand in terms of local market regulatory compliance, but must be conducted within a local, legally compliant framework.
In franchising, respecting and retaining brand identity, is essential. Founders must safeguard their brand and maintain control over its evolution.
Protecting brand and IP rights to support expansion
By devising and implementing suitable strategies, remaining vigilant and proactive, founders can safeguard their brand’s reputation and market position amidst rapid growth.
Expanding a franchise into new territories brings both opportunities and risks. Founders should employ robust strategies to protect their brand and associated IP rights, such as trade marks, patents, copyright, designs, domain names and know-how.
Identify the IP needed to conduct the franchised business, securing protection via registration where possible, and ensuring it is capable of being licensed to potential franchisees. Additionally, founders should establish clear brand guidelines and quality standards to maintain consistency across locations.
Given the increasing importance of e-commerce, online delivery, and the use of different social media platforms for brand promotion, pay attention to how the brand translates in certain international markets.
Marketing and advertising play a key role in creating a successful brand. Franchisees need materials which reflect the brand’s identity, plus training and ongoing support to ensure they are equipped to represent the brand effectively.
Innovation is part of maintaining a strong brand identity, but whilst businesses explore new ways to improve their products and services, it’s important to stay true to the brand’s identity.
Prioritise proactive monitoring and enforcement of IP rights to prevent any brand erosion. This includes monitoring the marketplace, identifying and addressing trade mark infringement, counterfeit goods, and unauthorised use of branded goods or materials.
Understanding group structure and economics in franchising
By providing a structure and by fostering a collaborative and supportive environment, founders can empower franchisees to flourish whilst preserving the integrity of the brand.
Successful franchising requires an understanding of the economics involved. Factors for consideration include corporate structure, franchise fees, royalties, and profit-sharing arrangements to ensure a mutually beneficial relationship with franchise partners.
To foster trust and alignment, the franchise agreement will, in addition to licensing the relevant intellectual property and know-how, provide both a commercial and operational framework for the parties, clarifying their respective legal rights and obligations to each other. The franchise agreement also needs to dovetail with any corporate agreements, operational documents and brand guidelines.
Again, founders should establish robust support mechanisms and resources to assist franchisees in achieving operational excellence. This may include comprehensive training programs, operational manuals, and ongoing guidance to uphold brand standards and deliver exceptional customer experience.
Keeping the founder and those deep-seated core values at the heart of the business
By adopting a strategic and proactive approach to brand management and franchise development, founders can ensure a thriving franchise network that embodies their vision and continues to cultivate brand loyalty worldwide.
As franchises expand, founders face the challenge of maintaining their central role in shaping the brand’s identity and direction. Delegation is necessary for businesses to expand but founders must remain actively engaged in strategic decision-making and brand management. This involves setting clear vision and values which resonate throughout the franchise network.
Effective communication and leadership are crucial. Founders need to regularly engage with franchisees and employees to keep them ‘on message’, and with customers to solicit feedback, address concerns, and reinforce the brand’s core values.
Source: Elite Franchise Magazine
