Welcome to FranchWire! Every week, we’ll round up what’s new and exciting in the world of franchise and deliver it to you. We hope you enjoy it.
The Super Bowl For Franchises
When it comes to franchise advertising opportunities, it doesn’t get any bigger than the Super Bowl.
Advertisers will drop huge sums of money to be featured for anywhere from 15 seconds to a minute on national television for the NFL’s championship, which annually is the most viewed television event in America. The stakes are high.
For national franchises like Subway, Burger King and KFC, this is a wonderful opportunity to get people buzzing about a long-established brand, a chance they take every year. That buzz trickles down to franchisees the country over, hopefully giving them a nice boost of business during a traditionally slow time of the year.
If your franchise is one of those with a Super Bowl ad spot, embrace it. Know the ad and have your employees know it, too, and definitely embrace any marketing or sales opportunities that spring up off of it. It’s like Christmas in February if you use it right.
Are Hybrids The New Thing In Franchise?
It’s worth asking after reading this report about a Burger King and a Friendly’s sharing the same roof.
Franchises have shared the same location for years, usually blocked apart by nothing more than a single wall. That’s nothing new. What is new is that Friendly’s, which has struggled mightily in recent years, is working directly with Burger King and serving both fares under the same menu in the same location. It’s called, oddly enough, Friendly’s Scoop.
This is not necessarily the first time this has been done, and it definitely won’t be the last. What intrigues me is the thought of pairing franchises with complementary menu options in this way, potentially bolstering both of their options and hitting the right notes in a marketplace increasingly focused on menu diversification. In other words, it’s good.
Let’s watch this one closely in the months ahead.
Consumer Spending Is Up
That’s good news for franchises, according to the IFA’s Steve Caldeira:
“Given many franchise businesses are in the restaurant, retail, tourism and personal services categories which rely heavily on consumer spending, today’s positive report is welcome news that supports IFA’s forecast for modest job growth in 2012,” said IFA President & CEO Steve Caldeira. “While still grappling with tight credit markets and uncertainty around tax rates and regulations stemming from the health care law and recent labor rulings, franchise business owners would feel more optimistic about hiring decisions if lawmakers addressed pro-growth policies that provide certainty on tax rates and boost small business lending. “
We’ve talked a little bit already about how the IFA has been beating that drum throughout the last few months, but it’s good to see they’re not abandoning it. The message seems to be “yes, there’s good news, but do you know what would make it even better?”
I support that.