buying franchise marketing business

Marketing the business

Sarah Stowe
Listen to new episodes on your smartphone or other device. See the transcript

Buying into a brand with strong marketing is a major reason for franchisees to invest. The franchisor plays a key role in marketing the business, promoting the brand for the benefit of the franchise group.

So what can you expect when it comes to marketing within a franchise network?

National marketing is the franchisor’s responsibility but unlike non-franchise brands, there is another element of marketing that is crucial to small business – local area marketing. Franchisees are responsible for their own local area marketing, which involves engaging with the local community and promoting their business.

Understanding marketing responsibilities and investing in marketing are important for franchisees to achieve strong results

In this podcast we discuss the national marketing approach, the marketing fund and its rules, local area marketing, common mistakes franchisees can make and where to find information about the brand’s marketing.

Show notes

The marketing fund must operate transparently, and the Franchising Code of Conduct has specific rules around its operation. The Franchising Code is a mandatory set of rules that governs the franchising sector in Australia, and it is regulated by the Australian Competition & Consumer Commision.

You can find out more about marketing funds here.

Both the disclosure document and franchise agreement are key resources for franchise buyers. Within the disclosure document you will find useful insights into how a brand operates its marketing fund while the franchise agreement includes a franchisee’s responsibilities for local area marketing.