February 2014
| Business World Magazine | 13
expenses have re-upped the required mar-
keting contribution for franchisees, taking
it back to where it was pre-2008 – or even
higher. Although increased marketing costs
can cause dissatisfaction among franchisees,
when done right, it can drive increased rev-
enues at the unit level. A brand that charges
franchisees less for marketing isn’t necessar-
ily a better brand for franchisees – nor is a
brand that charges more. Potential franchi-
sees need to carefully look at what a brand
offers as part of its marketing program (Do
they provide local support in addition to na-
tional? If not, do they give you guidelines for
local marketing strategies and spending? Do
they offer details of where the ad fundmoney
is being spent?) and what current franchisees
say about a brand’s marketing support.
