Mandatory centralised marketing programmes are probably one of the greatest strengths of franchising. Pooling funds from all of the franchisees in a system gives them, collectively, much greater marketing power. This central fund can be used to do things that no single franchisee could afford, like running television advertising campaigns. The fund can also be used to hire experts to produce advertising materials of far better quality than what an individual owner could create.
These funds can also be a great source of conflict though, because franchisees often feel that the pooled money is not being spent in the way they think it should be. This can be a huge issue in any franchise system, especially in a recession when all advertising tends to be less effective than in better times.
So it is essential for anyone contemplating a franchise investment to know in advance that the company’s marketing system is a good one. The following are five essential qualities of a good franchise marketing programme:
1. It drives customers
Plain and simple, the number one question for any franchisee to ask is whether or not the marketing fund brings enough people through the door to make the business successful. If the answer is yes, conflicts will be kept to a minimum. If the answer is no, watch out for World War 3.
2. It involves the franchisees
Successful franchise marketing programmes typically give franchisees substantial opportunity to weigh in with their opinions. The ultimate decision-making authority is normally still reserved for the franchisor, but well run funds get plenty of input from the people closest to the customer – the franchisees. You should look for at least a franchisee advisory group (elected or appointed) that meets with the company’s marketing executives regularly to provide input on future projects and campaigns.
3. It gets the splits right
Marketing fund rands are used primarily for three things. First, they cover the costs of administering the marketing effort (internal expenses, agency fees, etc). Second, they cover the costs of producing advertising materials (print, direct mail, radio and television ads, etc.).
Finally, they pay for media purchases to place these advertisements for the benefit of the contributing franchisees.
A common franchisee complaint is that too much is being spent in one of these areas and not enough in another. For example, the fund clearly needs to produce high quality promotional materials, but if all of the money is spent on production, there won’t be any left to deliver these wonderful materials to consumers. There obviously has to be a reasonable balance between these two needs.
Another common conflict is over the amount spent to promote ‘brand-building’ advertisements versus the amount spent on ‘customer attraction’ advertisements.
Many marketing department executives seem to favour the first approach, whereas most franchisees strongly favour the latter. So again, if there’s not a reasonable balance between these two needs, massive conflict can result.
4. It is well documented
A well thought-out and proven franchise marketing system will be carefully documented by the franchisor. Though they probably won’t provide you with all of their proprietary internal marketing documentation, you can request at least the table of contents of the marketing support manuals they provide to franchisees. This will give you a good idea of the scope of the strategies they address in training franchisees to market effectively. It will also demonstrate that they have perfected their systems to the point where they have documented them in manuals and other support and training tools.
5. It validates well
The surest way to find out how well the marketing programme is working is to get on the phone and start asking the existing franchisees. You’ll find that they will be very forthcoming on this topic since few things are closer to their hearts than marketing.
Be specific and ask them how well the marketing works in terms of driving customers into their business. Also ask if they think they’re consistently getting good value from their contributions to any required marketing fund. If you find a franchise system where the majority of the existing franchisees are unhappy about the way their marketing funds are being managed, you can safely assume that you’ll end up unhappy as well if you become an owner. Do yourself a favour and find another company. On the other hand, if most of the franchisees are pleased with the way the marketing fund is handled by the franchisor, that’s a great sign. You’ll often find that if this is the case, the franchisees are happy about most other factors in their business as well.
The topic of marketing is probably one of the most important you’ll address in your search for a franchise opportunity, so expect to spend some time on it. If the marketing materials are of good quality, if the systems are effective and well documented and if the end result is working well in terms of driving new customers into the business, everyone will be more than happy to give you lots of information about the marketing systems. If things are not going well, you’ll find that they want to move off this topic and onto something else as fast as they can.
Take your time and make sure you know whether or not you’re dealing with a good marketing programme. This is no small matter, since your livelihood will rely on the success of the marketing programme in driving customers to your business. The time and diligence you invest in this area can pay big dividends in the long run, and you’ll be happy you made the effort.
Choose A Job You Love, And You Will Never Have To Work A Day In Your Life
Join Col’Cacchio’s 26-year-long love story.
- Joining fee: R125 000
- Monthly management fee: 6% of turnover
- Monthly marketing fee: 2% of turnover
- Total investment: approx. R2.5m to R4.2m (turnkey) Size: 140m2 to 350m2
- Unencumbered cash (before loan): 50% of total investment
(Above figures exclude VAT)
“Owning your own restaurant is like owning your own future.” – Dominic Dempers, Franchisee Durbanville, Belvedere & Meadowridge Cape Town
We’re looking for passionate franchisees who will love our brand as much as we do.
Why you should join this delicious success story
- Assistance with site selection & lease negotiation
- Store design & build
- Full training provided for management and staff
- Marketing & operational support
- Product innovation & menu development
- Efficiency in all systems
- Healthy margins.
“Our journey started with a single restaurant on the foreshore with the aim to serve the very best pizza around” – Greg Mommsen, Business Developer Director
“Watching this brand grow and empowering people has been immensely rewarding. We have staff that have been with us for over 20 years. It’s like a family, we work hard, we laugh, we cry, we celebrate and of course, we eat a lot of pizza.” – Michael Terespolsky, Founder and Managing Director
“Becoming a franchisee is an amazing opportunity to join the family and become part of the Col’Cacchio success story. We’re 100% behind out franchises at every step, making sure that we all continue to learn and flourish” – Greg Mommsen, Business Developer Director
“It has been filled with challenges along the way, but all the rewards have made every moment worth it.” – Michael Terespolsky, Founder and Managing Director
Visit www.colcacchio.co.za or call Tarryn Godley on 084 800 7264 and let’s get this adventure going.
Smoothie Franchise Opportunity: Puré Frooty Is A One-Of-A-Kind Smoothie Franchise Business
Looking for the next greatest franchise opportunity? Puré Frooty Smoothie is a highly perfected Australian business model launching in the South African market that doesn’t require extensive shop fitting or a large workforce.
- Brand: Puré Frooty
- Established: 2017
- Website: www.purefrooty.co.za
Puré Frooty Smoothie is a unique business model to the South African market. A delicious, fruit filled smoothie will be created at the touch of a few buttons.
An Innovative Franchising Concept
This innovation in the healthy smoothie industry is ground breaking for South Africa. The machine is manufactured in Australia by a highly skilled team. It took six years to perfect this business model for the consumer market.
The vision of Puré Frooty Smoothie is to offer convenient on-the-go smoothies for anyone. The experience and quality will always be of the highest standard. We aim to be a staple convenience in malls, schools, office parks and hospitals. This is a platform that will allow for self-growth for passionate entrepreneurs.
Our mission is to create a unique customer experience. We want to satisfy the nutritional needs of customers by providing quality smoothies. Puré Frooty Smoothie will be packed with all the goodness a smoothie should offer.
The four values we pride ourselves in are:
- Customer Satisfaction.
Why Consider This Franchising Opportunity
Extensive research into the business model and market
Puré Frooty Smoothie was an idea, researched widely, by people looking to simplify the business process for the consumer and business owner. There was a gap in the market for simplified customer service and a demand for a quicker turnaround time.
Simplified process for setting up a business
For an entrepreneur it can be very overwhelming to start or buy a new or existing business. There are so many crucial decisions that need to be made from the beginning and new concepts to adapt to.
Puré Frooty Smoothie simplifies that drastically:
- Free-standing machines: The business model revolves around a free-standing vending machine which needs to be visited to refill and maintenance.
- No shop-fitting required: There is no need for shop fittings or a large work force. All that is required is an inside space for the machine with a power supply.
- Minimal human resources needed: In terms of a work force, you could either do it yourself or have one person to assist you. There is also a part time involvement where refill station teams can refill and maintain the machine.
- Cashless business: The business is completely cashless so there are no worries of a note jam, full cash canister or insufficient denomination rand values. More importantly the machines would do a higher turnover than an ordinary vending machine so safety of no cash is important.
- Easy tracking of stock and performance: A cloud-based system is linked to the point of sale which allows you to monitor your performance and stock from the back-office platform at any given time.
- Efficient handling of maintenance: With a live point of sale system, the business is linked to a software which monitors the operations of the machine. Should anything malfunction an immediate notification will be sent with a diagnostics report.
- Human error is eliminated: Everything is done with a computer which leaves little to no room for errors. It is self-order and very user friendly.
Related: SA Fast Food Franchising On The Rise
Why Will Customers Love It
Puré Frooty Smoothie offers a vending machine that can produce a delicious smoothie in forty seconds. An informative touch screen ordering panel which displays all the nutritional information of the smoothie ordered and has the current news and weather.
No time wasted for the consumer. In fact, it’s a learning session disguised as a waiting period. The machine has two wash cycles after every smoothie is made to be freshly prepared for the next smoothie, business hygiene is important.
Consumers live in the fast lane. We are looking for something quick and most times we would like to be healthier. With the hustle and bustle of today’s life every little bit helps. Puré Frooty Smoothie fills that gap in the market.
Interested in Becoming A Franchisee?
Visit our Franchise Info Page for everything you need to know about how to become information a Puré Frooty Smoothie Franchisee owner.
You can also call or write to us:
Phone / 012-942 6360
Email / firstname.lastname@example.org
Want to know more about this franchise? Watch the video below for more.
4 Top Tips To Find Your Best Franchise Opportunity
The President’s recent Job Summit highlighted the critical need to reduce unemployment. The franchise sector employs 369 573 people, 93 percent employed by individual franchisees rather than franchisors.
Several years of strong sectoral growth combined with business opportunities that are often backed by an investor safety net is making franchising the top choice for many who want to own their own business. This assessment is based on the strong foundations of my own experience of establishing Cash Converters nearly a quarter century ago and the recent results of Franchise Association of South Africa (FASA) annual industry survey.
These figures show that the SA franchise industry has grown its turnover by 55 percent from R465 billion in 2014, when FASA conducted its first survey, to R721 billion in 2017. Alongside this, the sector’s contribution to South Africa’s GDP has expanded by 62 percent, from 9.7 percent in 2014 to 15.7 percent in 2017.
The President’s recent Job Summit highlighted the critical need to reduce unemployment and boost the national economy by growing business and stimulating job creation. The franchise sector employs 369 573 people, 93 percent employed by individual franchisees rather than franchisors.
Franchising can be a win-win for franchisees. It enables you to make your dream of running your own business come true as well as contributing to providing much-needed new jobs.
These factors make franchising a particularly attractive option for those wishing to start their own business. But with 865 different franchise systems active in the country last year, the huge range of choice can be confusing.
To prevent analysis paralysis and ensure you can get set to make the most of franchising, I can offer four top tips for selecting the best franchise opportunity for you:
1. Choose a credible brand
As you shortlist franchisors that appeal to you, go beyond what they tell you about themselves and find out about what people are saying about them. Do social media searches to find out how consumers are reacting to the product or service offered, pricing and customer service. Your franchise fee should buy you a halo effect thanks to your franchisor’s good reputation. Too much negativity around the brand will affect the potential success of your franchise, from your ability to attract customers and the turnover and profit you can hope to generate.
2. Look for a proven business model
A worthwhile franchise shares with franchisees the intellectual property it has developed over the years. It has created and grown this business model over time, knocking off rough edges and fine-tuning systems for mistakes as they become apparent. Check the brand’s news history online as well as its own sales material. Be wary of any franchise that claims to be perfect or invincible.
Nobody is – so either it has something to hide or it is fooling itself. Either way, such a brand is not keeping its eyes open to navigate the brand and its franchisees through the changing fortunes of business.
Related: Thinking Of Going Into Franchising?
3. Check the support systems
Getting relationships and systems right is vital in business success. They have become even more important since we founded Cash Converters nearly 25 years ago because the volume of legal compliance has mushroomed. Make sure that the franchises you shortlist offer you support in coping with this and that those running the brand are in touch with what happens on the ground in the franchisees’ stores. At Cash Converters, for example, our front-end support staff are in stores every day and the directors devote three days each month to visiting stores. This ensures that our expertise is available to guide the franchisees through any business issues they face.
4. Follow the recipe
When you sign up with a franchisor, you receive access to its business model, including the “recipe” for running your franchise. This forms a kind of safety net so you do not need to reinvent a wheel when setting up your business. But you cannot complain that the business model does not work if you do not implement it. This is one of those times when you must follow the recipe to bake the cake successfully. If you are not the kind of person who wants to do that, then think again about whether franchising is for you.
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