1851

Many franchisors require recurring marketing fees, commonly ranging from&nbsp;<a href="https://franchisebusinessreview.com/post/common-franchise-costs-and-fees/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-much-should-i-invest-in-franchise-marketing-2718839" target="_blank" rel="nofollow">two to five percent</a> of a franchisee’s revenue. One of the beauties of franchising is that owners are able to buy into an established brand. There is a level of recognition that is almost guaranteed, and it was only established because of the work of the franchisor. So, this recurring marketing fee typically covers the cost of marketing efforts led by franchisors which, in helping the brand as a whole, are inherently helpful to the franchisee.While the two to five percent range is fairly common, it is not necessarily fair to assume that a two percent pay-in to the franchisor, for example, will secure any and all necessary marketing to guarantee success. In addition to mandated costs, franchisees should use their knowledge of the market they are pursuing and adjust accordingly.&nbsp;“A lot of these franchises are in saturated industries,”&nbsp;<a href="https://www.linkedin.com/in/coreyelias/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-much-should-i-invest-in-franchise-marketing-2718839" target="_blank" rel="nofollow">Corey Elias</a>, franchise broker and founder of&nbsp;<a href="http://www.francaptain.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-much-should-i-invest-in-franchise-marketing-2718839" target="_blank" rel="nofollow">Franchise Captain</a>, explained. “That’s fine, but you need to pick up your market share.”For many franchisees, this looks like a large initial marketing investment. Elias said, “I always tell my franchisees that, in year one, they're going to spend more on marketing than ever. You're starting to get that snowball rolling down the hill, so you're going to spend more on traditional marketing and give away more free products and services than you ever will.”&nbsp;For franchisees who are first getting established in an area, these efforts are what will create raving fans who want to talk about your product, recommend your service to friends and family, and really get your name out in the area.&nbsp;“You're going to want to make a stronger investment starting out to build your brand and your reputation in your community,” explained&nbsp;<a href="https://www.linkedin.com/in/angelazerdapaules/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-much-should-i-invest-in-franchise-marketing-2718839" target="_blank" rel="nofollow">Angela Paules</a>,&nbsp;<a href="https://buzzfranchisebrands.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-much-should-i-invest-in-franchise-marketing-2718839" target="_blank" rel="nofollow">Buzz Franchise Brands</a> CMO.&nbsp;A similar idea is true for new franchisors. Though they bring in revenue through franchise fees, they ultimately need each unit to succeed for the brand to live on. So, in a franchise’s early years, the franchisor will likely put additional resources behind marketing to ensure the brand becomes well known.Elias also pointed out that the idea of marketing reaches far beyond paper advertisements or billboards. “When a lot of people think about marketing their minds immediately go to bringing in new clients,” he said. “But sales and customer service are neck in neck in terms of importance. You can be closing all the deals you want, but if you’re not following through like you said, a one star review can crush your business.”In this sense, a marketing budget must consider costs outside of a franchise market fee and independent advertising costs.&nbsp;<a href="https://www.outbrain.com/blog/marketing-vs-advertising-7-key-differences-you-need-to-know/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-much-should-i-invest-in-franchise-marketing-2718839" target="_blank" rel="nofollow">Outbrain</a> says that “Marketing is the ongoing process of making sure your product or service is compelling to your potential market and buyers.” While this, at times, looks like brand awareness, it can also come in the form of nurturing the working relationship with clients, customers and employees.Addressing this aspect of a marketing plan should involve consideration of finances — employee compensation, renovations or upgrades to streamline client experience, etc. — as well as other forms of cost. There may be an emotional labor or time requirement that does not fit into a traditional marketing budget. However, committing the time or mental energy can have&nbsp;<a href="https://www.fastcompany.com/90732498/for-long-term-business-continuity-build-empathy?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-much-should-i-invest-in-franchise-marketing-2718839#:~:text=Simply%20put%2C%20empathy%20builds%20stronger,all%20be%20happy%20to%20achieve." target="_blank" rel="nofollow">outstanding impacts</a> on client satisfaction, workplace morale and overall successful operation of a business.&nbsp;“The important thing to remember is that putting a face to your business is really effective,” Paules said. “People want to do business with people, not just with a brand name or a company name. They want a personal experience, so the more that you can get out there and meet potential customers or have your staff meeting potential customers, the better.”Ultimately, though there is no silver bullet to franchise marketing, franchisees must remember that some things are non-negotiable — franchisor-related fees — and the rest is in their hands. Yes, many entrepreneurs take the franchising route because of the proven model provided, but owning a franchise does not strip the franchisee of&nbsp;all entrepreneurial responsibilities and freedoms. When developing a plan to supplement franchise-wide marketing standards, the entrepreneurial spirit and passion for one’s business is what should guide the franchisee in establishing a plan best fit for their market, community and team.

How Much Should I Invest in Franchise Marketing?

1851 Franchise

Unfortunately, there’s no cookie cutter marketing approach that will guarantee success, but there are a few pieces of advice to keep in mind.

how-much-should-i-invest-in-franchise-marketing

HomeTeam Inspection Service

Photo of HomeTeam Inspection Service representative giving presentation

Strategic Partnerships Fuel Franchise Growth at HomeTeam Inspection Service

hometeam-inspection-service-franchise-growth-partnerships

Express Employment Professionals

What’s in the 2025 FDD? A Closer Look for Express Employment Professionals Franchise Buyers

whats-in-the-2025-fdd-a-closer-look-for-express-employment-professionals-franchise-buyers

petbar

How-petbar-Makes-Pets-and-Their-Owners-Happy-as-Part-of-the-Family-in-a-Clean-and-Fun-Environment

How petbar Makes Pets and Their Owners Happy as Part of the Family in a Clean and Fun Environment

petbar-franchise-opportunity-boutique-pet-grooming

petbar Franchisees Win the $6.89B Global Market With Complete Transparency, Self-Service and Membership Models, Creating the Happiest Place for Dogs

petbar-franchise-opportunity

Why petbar Wants to Be the “Disney World for Dogs” — and a Dream Business for Franchisees

petbar-franchise-dan-ashley-o-loughlin-qa

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Chick-fil-A Tops Customer Satisfaction Rankings for 11th Year as Challenger Brands Gain Ground

chick-fil-a-tops-customer-satisfaction-rankings-for-11th-year-as-challenger-brands-gain-ground

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

Hardee’s Lawsuit Highlights the Risk of Going Off-Model in Franchising

hardees-franchise-lawsuit-paradigm-investment-group

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

paris-baguette-franchise-rockaway-new-jersey-vishal-junjea

From Personal Care to Purpose-Driven Business: Why This Couple Is Bringing Griswold to Houston

from-personal-care-to-purpose-driven-business-why-this-couple-is-bringing-griswold-to-houston

Franchisee spotlight graphic with photo of Sean Phelan & Caring Transitions logo

From Tech to Transitions: Why This Caring Transitions Franchisee Left the Corporate World To Help Families Navigate Life’s Hardest Moves

sean-phelan-caring-transitions-franchise-austin

Franchisee spotlight graphic with photo of Raj Pingili and Paris Baguette logo

How a Family Vacation Inspired Raj Pingili to Bring Paris Baguette to Towson, Maryland

how-a-family-vacation-inspired-raj-pingili-to-bring-paris-baguette-to-towson-maryland

How Much Should I Invest in Franchise Marketing?

MORE STORIES LIKE THIS