Franchise Advertising: What to Expect from Your Franchisor

January 31, 2024

Stepping out of the corporate world and into the realm of franchising is an exciting way to flex your entrepreneurial muscle. One of the many advantages of joining a franchise like Creative Colors International is the support you receive, especially with advertising and marketing. Franchise advertising is a shared responsibility between franchisees and the franchisor, and understanding this dynamic can set you up for success. Learn more in our guide to franchise marketing and advertising.

Advertising Support: A Two-Way Street

When you invest in a franchise, you're not just buying into a business model, you're becoming part of a brand. There are nearly 805,000 franchises in the U.S., employing approximately 8.7 million people. They cover a wide swath of industries and are available at various investment levels. If you want to launch a business but prefer to start with a lower level of risk than an independent venture, franchising offers promise. Franchises with an initial investment of more than $25,000 only have a 5% failure rate, according to Entrepreneur.  And as part of the lower risk level comes the power of collective advertising. CCI offers extensive advertising support to ensure brand consistency and to leverage the strength of your franchise marketing efforts.

Franchisors typically handle national or regional advertising campaigns, ensuring the brand remains top-of-mind for consumers. These campaigns can include television and radio commercials, online ads, and even billboards. As a franchisee, you benefit from these broad-reaching efforts without having to manage them yourself.

On the local level, franchisees often take the lead by hosting local events, running promotions in your community, or even partnering with nearby businesses for joint marketing efforts. While the franchisor provides the overarching brand strategy, it's up to you to bring that strategy to life in your area.

Most franchisors also have online tools for new franchisees, such as customized websites, online advertising, and email newsletters. Taking an omnichannel marketing approach enables new entrepreneurs to build a loyal B2B and B2C customer base.

Decoding the Advertising Fee

The advertising fee is a regular payment by franchisees to support collective marketing efforts. The ad fee is typically a percentage of your gross sales and is separate from the royalty fee you pay for the right to operate under the franchisor's brand. CCI charges an advertising fee of 1% of gross sales, or a minimum of $50 a month for the first year. Our marketing and development fund creates both national and regional advertising materials and marketing materials to promote the brand.

The Power of an Advertising Fund

The advertising fee contributes to an advertising fund. This pooled fund is for large-scale franchise marketing services that benefit all franchisees. Think of it as a communal pot, where everyone contributes, and everyone benefits. The fund ensures that the brand maintains a strong presence in the market, driving customers to franchise locations everywhere, including yours. We implemented a marketing fund committee to act as a voice for our franchisees by providing us with a regular forum to hear advice and counsel from our franchisee network. 

Navigating Advertising Rules

Franchisors often have guidelines in place to ensure brand consistency. These rules dictate what you can and cannot advertise. For instance, you might be restricted from offering promotions that aren't approved by the franchisor or from using unauthorized marketing materials. While following guidelines might seem limiting, it's designed to protect the brand's reputation, which, in turn, protects your investment.

The CCI Advantage

CCI is the mobile leader in leather and vinyl restoration and repair. With a strong brand reputation and a commitment to franchisee success, we provide robust marketing support at both the national and local levels. In addition, our mobile vans act like billboards advertising your business when you get behind the wheel. As a franchisee, you'll benefit from our established presence while receiving the tools and guidance you need to make your mark in your community.

Launching a franchise is a big step, but the CCI business model offers built-in support. Understanding the ins and outs of franchise advertising enables you to leverage the power of collective marketing, driving success for your franchise and the brand. Request franchise information to learn more about CCI and how to build a customer base in the repair and restoration industry.