Spreading the network without diluting the brand

Starbucks, Nike, Nokia and Marks & Spencer are only a few brands in the international retail sector where franchising is fast becoming the most popular method of expansion. These brands already have a reputation that markets around the world recognise just by looking at their logos.

US brand Taco Bell has become familiar in India while another American symbol, The Gap, has settled down in Australia and across the Middle East. They may not be the biggest brands ever, but they are part of a bigger trend: US brands, even those that don’t have franchises in America, have been reaching out to the world.

In the UAE, the franchise market is dominated by mostly US and European brands in the fast-food and fashion retail sectors, but has recently changed to include more and more Asian franchisors, as well as smaller franchisees and sub-franchisees. Therefore, it is safe to conclude that the UAE has a lively franchise market with a very bright future.

In the restaurant and café business, brands developed from within the region are expanding and reaching other markets. To be successful in this highly promising industry, the brand’s integrity must be guarded at all times.

One of the best reasons why the big franchises thrive all over the world lies in the strength of their brands, empowered by a strict adherence to brand guidelines.

Is this just about the corporate logo? Seriously, it is much more than that. The logo is only one part of the big machinery built around it.

And no part plays a minor or major role. Everything is absolutely vital and must work efficiently for the brand.

In franchising, it is important that the brand becomes a finite being right from the very beginning — from naming, to logo design, to corporate colours, to activation and beyond. The brand must be a living thing that can be easily translated to anything from signage to everyday stuff like pens, wrappers, and boxes.

Subway Restaurants, when named the No.1 Global Franchise Opportunity in 2009 by Entrepreneur Magazine, had more than 30,500 locations in 87 countries. Just think of how they had to control every aspect of the brand in each and every franchise location.

It sounds like a big headache to have a multi-location franchise and stick to one brand ideology for all. To achieve brand consistency and encourage franchisee independence at the same time or keep the brand message uniform while trying to pinpoint a specific local target.

These are major challenges for a franchisor if he wants to succeed in more than one market.

Marketing consistency is taken to greater heights in the franchise world, dictating the design of an outlet down to the colour of the restroom tiles, or customer service details like how wide the smile of a salesperson must be. Absolutely everything the customer sees, smells, touches and hears inside and outside the outlet must achieve marketing consistency for the brand.

To maintain such adherence, franchisees must be provided with comprehensive brand guidelines, franchisee training programmes, and consistently executed branding and marketing materials. Strictly enforcing clear guidelines not only helps franchisees maintain the brand identity, it also provides a uniform customer experience in every outlet.

Brands like Subway and McDonald’s have perfected their global franchise operations by having franchisees follow system guidelines to the letter, while encouraging feedback and ideas for improvement. It is widely known that the Big Mac, Egg McMuffin and Filet-o-Fish were ideas originated by McDonald’s operators.

Issues like language and culture may be just as challenging in every market, but if addressed right away in the brand guidelines, these will not pose such a great problem. The objective is to make the brand as culturally sensitive as possible without losing the core brand values and equity.

— The writer is the CEO at re-brand-ing.