Franchisee and Brand Building

There are various doubts about the Franchisee Route to Brand Building. Certainly aggressive growth can be obtained by using this route but there are some precautions to be taken as the path is fraught with risk.

First and foremost the path is taken to increase the brand presence and visibility but it may lead to brand dilution if the Franchisee management and employees do not understand the importance of the parent brand. So make sure you have proper guidelines and incentives and disincentives to induce the right behavior patterns in the Franchisee work force.

Encourage positive behavior by being fair in profit sharing and profit remittance dates et al as these are likely to create grouse in the Franchisee management. Also make sure that the termination conditions are set in the contract level only as also the SLA's expected off the Franchisees. But keep in mind that every failure would lead to a brand dilution.

So keep your fingers crossed and go for that aggressive expansion drive.