What are franchises? Branding in franchises

what are franchises

Many entrepreneurs ask themselves the same question when they are considering expanding their business: What are franchises? This is a question whose answer is closely related to the concept of branding.

In today’s post, we will tell you about the relationship between brands and franchises and how you can boost the success of a franchise with the brand’s potential rentability.

We invite you to read on so you can discover how to boost the success of a franchise with a powerful brand!


What are franchises?

Franchises are commercial agreements between two companies, in which one company (the franchisor) allows another company (the franchisee) to use its brand, products, and business systems in exchange for a fee or a percentage of each sale, called royalty.

The most commonly used franchises in the franchise world

There are several different types of franchises in the market, including fast food franchises such as McDonald’s and Subway, and retail store franchises such as 7-Eleven and GNC.

We also find service franchises, such as cleaning, auto repair, medical, and health care franchises.


What is the objective or purpose of a franchise?


The purpose of a franchise is that the franchisor, who already has a successful business model, can expand its reach and growth more rapidly by allowing other businesses to use its brand and business approach.

On the other hand, the franchisee has the advantage of starting a business with a proven and successful business model, rather than having to create one from scratch.


What is the role of a brand in franchising?


The brand is a key element in a franchise because it is what allows the franchisee to use the established recognition and reputation of the franchisor company.

The franchisee can use the brand in their advertising, on their store or premises, and in their products and services. This allows him to attract customers and build his business on the already established reputation of the brand.

This is where the importance of branding in franchising comes into play, as the use of a recognized and respected brand can help franchisees gain a competitive advantage in the marketplace.

Conversely, an unprotected or disreputable brand can drive that franchise out of business.

When customers become familiar with a brand and respect it, they demonstrate greater confidence in the products and services that the company or franchise offers.

Branding is also important to the franchisor, as it allows the franchisor to expand its presence and growth more quickly by allowing third parties to use its brand and business approach.

In addition, the franchisor can ensure that quality and service standards remain consistent across all franchise locations, which helps protect the brand’s reputation.


Using the Brand Properly in Franchising – Branding in franchises


Once we are clear about “what are franchises“, we can understand how important the role of a brand in franchising is, since the success of the business depends mostly on it.

There are several successful brands worldwide  that have managed to protect their brands, turning them into a very profitable intangible asset.


What are the benefits of starting a franchise with a powerful brand?


One of the main benefits of starting a business through a franchise with a powerful brand is that the franchisee will have access to an established and recognized brand, which will help him/her attract more and more customers.

Likewise, the franchisee will be able to commercialize the franchisor’s already proven and successful products and services under its brand, which reduces the risk of business failure.

On the other hand, franchises with powerful brands usually have a wide network of contacts and resources, which can be beneficial to the franchisee in obtaining suppliers and business partners.

Also, greater bargaining power is obtained because the support of a prestigious or powerful brand increases the good reputation of that franchise and gives it stability.

Franchises with powerful brands


Franchises with powerful brands are a symbol of a proven and successful business model that has been properly protected.

In general, franchises with powerful brands can be an excellent option for those looking to start a business, so it is important to research carefully to determine if that brand is powerful or not.

With the right information and research, a franchise can be a very profitable business, which is why it is so important to understand the relationship between franchising and branding.

If you want to know more about how to protect your brand to have a successful franchise, I invite you to schedule an appointment so we can talk about your brand and review what is the best protection strategy you could implement.


We hope this post has helped you solve the question “what are franchises” and has given you a clearer vision of the close relationship between a brand and a franchise.

If you liked it, share it so that others can benefit too.


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