{"id":2959,"date":"2024-05-01T09:38:10","date_gmt":"2024-05-01T09:38:10","guid":{"rendered":"https:\/\/balihoo.com\/?p=2959"},"modified":"2024-05-01T09:38:10","modified_gmt":"2024-05-01T09:38:10","slug":"how-much-of-my-franchise-budget-should-go-to-marketing","status":"publish","type":"post","link":"https:\/\/cool.co\/franchise-and-multi-location\/how-much-of-my-franchise-budget-should-go-to-marketing\/","title":{"rendered":"How Much Of My Franchise Budget Should Go To Marketing?"},"content":{"rendered":"

Running a franchise is a numbers game – and one of the most important numbers is how much to put into your marketing budget.\u00a0 In this blog post, we explain how to figure out what\u2019s the right amount for your franchise locations.<\/p>\n

One of the big benefits of opening a franchise location is working with an established brand – with corporate working round the clock to promote the brand nationally, individual franchisees don\u2019t have to feel like they\u2019re starting from scratch when it comes to promotion.<\/p>\n

For some franchisees, however, it can come as a surprise to realize that even with a brand\u2019s national profile, they will still need to front some of their own<\/i> revenues toward marketing efforts, too. Explaining why, how, and how much is crucial for any franchise operation – both for franchisors looking to encourage their franchisees to take part in marketing efforts, and also for franchisees hoping to learn more about how to get the most out of their business.<\/p>\n

In this blog post, we\u2019ll explore the different areas a franchisee needs to consider when developing their local franchise marketing efforts, and why those efforts are a crucial supplement to the national ones. Read on:<\/p>\n

\n\t\t\t\tContents\t\t\t<\/h4>\n

Read More:<\/i><\/b> Should I Use Branded Keywords In My Search Advertising?<\/a><\/p>\n

The Franchisee\u2019s Role In Marketing<\/h2>\n

Franchisors are, ideally, doing a ton of marketing for their brand, awareness, etc. \u2014 the so-called \u201c30,000-foot view.\u201d But while the franchisors are handling that sort of large-scale marketing, that\u2019s only going to do so much to market an individual franchisee\u2019s location. Clearly, local, ground-level marketing<\/a> is the franchisee\u2019s responsibility. <\/p>\n

To put it another way – it\u2019s a franchisor\u2019s job to make sure that customers want to shop at your brand.<\/i> It\u2019s up to the franchisee to make sure that customers want to shop at your location.<\/i><\/p>\n

For things devoted to a specific franchisee\u2019s territory, like social media marketing, ad circulars, billboards, community outreach, and paid search, the money will have to come from a franchisee\u2019s budget. <\/p>\n

This can be good, though: ideally, a franchisee should know their region and customers better than a more-distant figure at the franchisor level, and have an idea of how to reach them. Assuming they adhere to any marketing guidelines the franchisor may have set out for them, this could be the best possible division of responsibility.<\/p>\n

Setting Your Goals<\/h2>\n

Like Babe Ruth pointing his bat to the outfield, if you want to succeed at marketing your franchise, you\u2019re going to need to know what your goal is. Different goals require different approaches, and different approaches will have different associated costs.<\/p>\n

Pushing for customer loyalty<\/a> and retention, for example, may require follow-up email marketing, an online retargeting campaign, or free gifts for certain customers. Pushing for greater awareness could mean more social media marketing, mailers to local addresses, or outreach in the community. Pushing for more sales could mean paid search, banner advertising, or CTV<\/a> promotions. Having a specific goal in mind \u2014 preferably a reasonable, achievable one \u2014 will help you determine your approach.<\/p>\n

Estimating Your Budgets<\/h2>\n

Equally critical is assessing your revenue. This becomes more manageable if the franchise has a history of operation, allowing the use of previous year-over-year data as a benchmark. But if it\u2019s a new location, doing market research into similar locations elsewhere will be helpful. All of this helps you determine how much your location can afford to spend on marketing efforts.<\/p>\n

For many franchisees, this can be a sticking point \u2014 that \u201cextra\u201d money is the franchise\u2019s profits, and they\u2019re understandably reluctant to part with them. But it\u2019s important to remember that if everything goes according to plan, these marketing efforts will produce a return on investment<\/a> in excess of what you put into it.<\/p>\n

Other Factors<\/h2>\n

Naturally, there are a lot of other factors that play into what a franchise owner may be expected to spend on their marketing:<\/p>\n