Franchisors generally expect their franchisees to contribute a marketing fee to execute a national marketing campaign. On average, such a fee ranges from 2% to 6%.
And while this fund may not cover all marketing needs, it’s a vital strategic starting point. I can vouch for this. I know how important alignment is across the network regarding launching and executing a national marketing campaign.
I also know how important transparency is regarding such spend. That’s why it’s key for franchisors to approach this task with clarity, realistic goals and accountability.
Understand the role of the national marketing fund
As you can guess, a marketing fee is a payment made by franchisees, as outlined in their franchise agreement, to contribute to marketing activities carried out by the brand at national level.
However, marketing is a broad field, which is why these activities are usually limited to centralised Google Ads campaigns or search engine optimisation (SEO) for the entire brand website.
The bottom line? All franchisees benefit. But as a franchisor, you must consider the needs of the whole network and clearly and transparently communicate how the funds are used.
It goes without saying that this fund isn’t a catch-all solution, but it should offer foundational support. Used correctly, it can motivate franchisees to run their own local campaigns, too.
Focus on high-impact, centralised campaigns
To achieve nationwide reach, several elements must be in place, brand consistency being one of the most important. Consistent use of brand marketing assets reinforces brand identity in your customers’ minds. It also strengthens brand awareness and recognition, boosting your business’s reputation and success.
So, how do you achieve this consistency at scale? It comes down to creating and launching campaigns that benefit the entire network, such as national Google Ads campaigns and SEO for the brand website.
All this should be supported by clear deliverables, like working on Google listings and creating reusable social media calendars and graphics.
The goal is for your national campaign to have the right impact, which helps franchisees by equipping them with a strong foundation for their own marketing success.
Involve the right people in strategic planning
With the above in mind, you may wonder what’s the best way to get started. Evidence shows that including your marketing manager and franchisee advisory council in the process (if they exist) is a strong way to begin.
Joint planning not only means stronger buy-in from your franchisees but better execution, as well. It’s not only about planning though. It’s also about using franchisee feedback to loop back to your marketing mechanism and ensure that campaigns reflect the broader network needs.
Align national and local marketing responsibilities
With all the basics in place, it’s highly advisable to focus on complementary efforts. What this means is that your national marketing fund covers big-brand campaigns. Meanwhile, your franchisees should focus on investing in Meta ads, email marketing, etc.
Not involving your franchisees in the process or leaving them to their own devices could be disastrous for your brand. To protect yourself from such chaos, you’ll want to document your local marketing expectations in your franchise agreement.
Generally, a two-way strategy that involves the parent brand and franchisees to work together on marketing goals is more encouraging for the “zees” to follow suit.
Monitor, support and enforce execution
And now, for my finale: you need to monitor, support and enforce execution. This means assigning someone from your national team to monitor local franchisee marketing activity.
This aspect should be accompanied by headquarters providing the support and tools your franchisees need to succeed.
On the other side of the coin, you also need to enforce accountability. That’s because when everyone follows the plan, results improve for your entire franchisee network and brand at the same time.
Conclusion: Reach out for help when you need it
A well-run national campaign, aligned with local execution, builds strong franchise brands. However, managing national and local campaigns and finding the perfect balance can be highly complex.
So, if you feel it is becoming overwhelming and maybe a little scary, consider outsourcing this service to an agency. At Franchise Fame, we can work with your franchisees directly while running your national campaigns. We literally do it all. For tailored help, feel free to reach out.
