Nothing says “we’re in this together!” like a shared reputation. And that aspect is at the heart of franchising. Depending on which of the over 3,000 different franchise concepts you choose to investigate, they all have one thing in common. You’ll be getting the instant reputation of their business. But we aim to point out that this reputation goes both ways. Once you represent their enterprise, you’ll be upholding your end of the deal as well.
When you buy a franchise, you’re buying into a brand which has already earned name recognition. And while there does seem to be a linear relationship between costs and how big that name recognition is, it works the same for all franchised operations. And it’s one of the top selling points of our industry. With reputation, comes its natural cousin—trust. And trust is what gives you, the new franchisee, instant credibility in the marketplace.
As a new franchisee within a system on the frontlines, you’ll have a duty to protect the brand’s reputation and this can be a very empowering charge. When you don that logo apparel and signage, you’re an official member of the team and expected to conduct yourself accordingly. Franchisors can’t stress this enough, which is why most franchise agreements include iron-clad termination clauses. These infractions typically cover such items as divulging company information, inappropriate behavior or any other activity deemed harmful to the brand’s reputation.
If you’re wondering about a specific example, many franchisors are becoming acutely aware of social media, putting in place strict rules about shared content. It only takes one errant tweet or a controversial social media post to put the brand squarely in the crosshairs of public opinion. Even displaced anger at a customer review on Yelp can lead to a serious backlash. What’s the downside? A possible boycott—one of the dirtiest words in brand management. Anything that can lead to decreased earnings for a corporation is given the utmost concern. You can expect as much from your franchisor when you share a common reputation.
There are many different avenues franchisees and franchisors alike can do to manage their reputations. Continuous customer feedback, surveys, online questionnaires keep brands prospering under discerning consumers. Today’s shoppers are much more conscientious than in previous decades. They’ve become more socially aware of how brands tie in with the greater good. Reputation has a lot to do with these sentiments. In a sense, consumers are just looking for a purchase, but rather an experience. Continually providing that positive experience leads us directly back to shared reputation management.
As a prospective franchisee, you may already be thinking of how you’ll continue to build upon the reputation the franchise brand gives you. Perhaps you’ll even bring some of your own customer experiences into the discussion.
Reputations are extremely important and, at times, all too fragile. They can sometimes take years to build, but only moments to lose. At FranNet, we too have a reputation to uphold. One that relies on our decades of experience in navigating prospective franchisees with top franchise concepts. If you have a few thoughts you’d like to contribute about shared reputations, we’d love to hear from you.
Let’s chat! There’s a local FranNet consultant right in your market who knows that market inside and out – knows the personality of the market – knows the competitive landscape. FranNet has a great track record of assisting individuals on their path to entrepreneurship, and one of our franchise experts would love to provide you with guidance free of charge. Sound like something you might be interested in? Get started here and find your local consultant right now!