Advertising and Equity
October 15, 2008
Pro: Advertising Clout
One can never underestimate the importance of strong advertising, especially for new businesses. Advertising is the way in which the public becomes aware of your product or service. It makes them aware of their own need for you as a business, and consequently, you get their business. Many businesses just starting out can not afford the type of advertising that’s really needed to spring a company into the public’s awareness. As a result these companies usually fall flat. Fortunately for the franchisee, franchises offer a great deal of free advertising because you are plugging into a network of uniform branches all being taken care of by the franchisor. This greatly lowers the cost of advertising that you, the franchisee, are responsible for.
Pro: Building Equity
When you enter a franchise, there is already a significant amount of equity built up from the years the franchise has been around. National and regional name recognition is already quite high and by entering into a franchise, you receive territorial exclusivity. Because of these factors, your business with sell more and sell it faster.
