Reeder’s advice? Brands should focus on candidate education and their digital presence if they want to see ROI.
Based in the Chicagoland area, On Pace Franchising helps prospective franchisees find the brand and concept that’s right for them. The On Pace Franchising team also helps in the realm of franchisor development, working with companies who want to franchise their concept and need help getting started and preparing a Franchise Disclosure Document.
Enter Mimi Reeder, On Pace Franchising’s Chief Operating Officer. Reeder shared her insights with 1851 Franchise on what brands should focus on and where they might consider spending—and not spending—their budgets in 2020.
1851: What's working for your clients in 2019 that you recommend spending on in 2020?
Reeder: In 2019, what’s been working for franchisors is spending money on targeting clients directly using social media and internet advertising. When a franchise knows exactly who its target franchisee is, they are able to utilize various filters available on those platforms to narrow in on potential candidates.
1851: Where can franchisors lighten their budgets or remove spending from?
Reeder: Franchises can lighten budgets on older forms of advertising such as paper brochures and trade show attendance. With digital technology and video, it is more effective for brands to put together very attractive digital brochures and improve their web presence.
1851: What's the biggest trend you're seeing when it comes to franchise development budgets and spending?
Reeder: One of the biggest trends we see when it comes to franchise development budgets is the use of third-party consultants, who connect candidates directly to a franchise that is aligned with their background, education, financial situation and lifestyle goals. Since franchisees do not often know which franchise is right for them initially, it is helpful to have a consultant who can guide them through this process—and for brands to get in front of those same gatekeepers.
1851: What's an area in which franchisors commonly overlook or spend too little?
Reeder: The areas where I see franchisors spending too little is on the initial education of the candidate to be sure it is the right franchise for them. Having a great vetting process for qualifying franchisees is very important for success later on.
1851: Where do you advise franchisees to spend their marketing budgets on the local level?
Reeder: When you become a franchisee at the local level, it is important to make a name for your individual franchise unit as well as have great overall brand recognition. This will include spending on community events, networking groups, local advertising and targeted ads on Facebook, Instagram and LinkedIn. You do not want to rely solely on your franchise system to bring you business.
Responses edited for style and clarity.