Franchising has become a marked institution in the United States and, indeed, across the globe. The number of franchising organizations continues to steadily increase as does the percentage of businesses operating under franchising agreements as opposed to independent ownership. This shouldn’t come as any surprise when one considers the decided advantages that franchisees have over independent owners, especially during those risky first 5 years of trying to establish a new business within any community.

One of the most noticeable differences between the independent business and the franchise lies in the area of marketing. There are several marketing factors that contribute to providing an overall edge for the franchise owner. In fact, the aspect of marketing is what provides what is perhaps the single greatest benefit of franchise ownership: brand recognition.

It may seem to almost go without saying, but it does bear consideration – the independent business owner simply cannot ever hope to market on the level that franchising organizations market their franchises. It’s a simple matter of resources and practicality.

Franchisors make their money via royalties and franchising fees collected from their numerous franchisees. To increase their profits, they need to a) insure that every one of their franchises has the best chance of profiting at its greatest capacity and b) that they are bringing in a steady stream of new franchisees. The franchisor cannot hope to accomplish the latter without having accomplished the former. The brand is only appealing to new investors if the existing franchises, on the whole, are doing well.

In order to insure that the individual franchises are doing well, the franchisor has to market broadly and market aggressively. When we say broadly, we do not mean necessarily in the scope of demographic appeal (in fact, many of the more successful brands have become so by narrowing their target demographics significantly). What we mean by broadly is that they market through every available media, be it television, radio, newsprint, magazines, billboards, etc.

Off hand, you can probably think of two dozen advertisements you have seen just today that were representing major franchised brands. These multi-million dollar blitzkrieg campaigns are well beyond the scope of any independent business owner. In truth, such far reaching marketing campaigns would be of little benefit to the independent owner who relies predominately on local business.

However, the massive marketing campaigns of franchisors provide two major benefits to their franchisees. The first being, obviously, that these advertisements are more thoroughly researched and tested to appeal to the target demographics. Consumers want to be dazzled and they tend to be more influenced by ads that pull out all the stops, bells and whistles. The independent owner just can’t hope to gain the celebrity endorsements and high dollar budgeting for such ads.

The ability of franchisors to market broadly and effectively provides the second benefit to franchisees – brand recognition. This benefits the franchisee because they are able to start their business with an already established and accepting customer base. The franchisee also benefits from being able to bring in customers who may not be local, but who, when passing through an area are more likely to visit an establishment with a name they recognize and trust instead of using the goods and services of an unknown independent merchant.