Franchisors use marketing royalties for national brand building, not local customer acquisition. Franchisees must run their own local campaigns through Google Ads, local service ads, partnerships, and events. National visibility plus local effort generates leads.
The franchisees very often expect the franchisors to be generating leads for them entirely. This is wrong. Franchisees should also be doing a lot of work locally so that they can generate inquiries and develop their business. There's a lot of confusion between, between what the franchisee should be doing for their marketing and what the franchisor should be doing. In terms of the FDD that a franchisee signs, In that agreement, you can find the information, what you're going to be paying as a franchisee, what you're paying for apart from royalties. Very often franchise brands charge a marketing fee or marketing royalty, and that is normally a percentage of the revenue or a flat fee where each franchisee contributes towards the marketing national budget. And that national budget, the franchisor decides how to spend best, but it's done with the entire network's interest in mind, which means that it's usually used towards brand building, maintenance of your website, uh, SEO, and so forth. At the same time, in your FDD, the franchisor asks the franchisee to reciprocate that effort at the very minimum, and for the franchisee to be running local marketing campaigns themselves. So the franchisee is responsible for their local marketing, which means essentially that in each and every territory that a franchisee is present and represents the brand. The franchisee should be running local marketing campaigns, whether that's local advertising and local service ads, Google Ads, or anything offline with partnerships, merchandise, sponsoring events, and so on. Franchisees, essentially, this is your own business. You can't rely on someone else to drive leads for you. Yes, you're contributing to the marketing budget, but that marketing budget is for national campaigns. The national campaigns increase the visibility of the national brand. Your local marketing campaigns with the national brand campaigns create that extra level of local visibility for the customers. So when your local customer is searching for your services, they notice the brand first and they're searching for local presence. I wanted to demystify the fact that a lot of franchisees and people who are potentially buying a franchise believe that the franchisor and his team are the people are responsible for lead generation for your company. No, you are equally as responsible, even more so. For any more questions or advice on local franchise marketing, follow my channel and like this video or drop me a comment.
