FRANCHISE: Franchisor’s role in franchising

What you need to know:

At the same time the franchisor seeks to attract and retain worthwhile franchisees seeking to fulfill their personal and financial goals through the franchisor’s system.

It is the franchisor’s role to provide brand power. Reaching the franchisability threshold requires a business to have undertaken significant steps in branding, thereby placing the brand strategically in the minds of consumers. A brand is a name, term, design, symbol, or other feature that distinguishes an organiation or product from its rivals in the eyes of the customer. It is proprietary to the business. Brand power therefore are the tried, tested and trusted marketing programs developed over time to build and enhance brand image, grow brand equity and attract customers consistently. Branding is a set of marketing and communication methods that help to distinguish a company or products from competitors aiming to create a lasting impression in the minds of customers. Key components forming a brand’s toolbox include a brand’s identity, brand communication -such as by logos and trademarks-, brand awareness, brand loyalty and various brand management strategies. It is these marketing and communication systems that the franchisor deploys to the franchisee in order to further grow the brand. Since you cannot grant what is not legally yours, a logical starting point before franchising is to legally protect your brand through registration of trade or service marks, patents, copyrights, designs and know how, (collectively known as intellectual property) with relevant registration authorities in all markets you wish to enter prior to seeking any franchisees.