Franchisor’s Failure and Damage Control

The executive vice president of one of the most celebrated franchise brands of hotels was found campaigning to present a new image of the brand in the society. It does not happen often that a popular brand comes up with a completely new strategy to promote its business. It is not the facelift but a complete makeover that can affect both the franchisors as well as franchisees.

Business development managers working for different franchise brands are of the opinion that value additions and conformity to the changing trends is must for the business. A franchisor cannot stick to an old model and traditional strategies as new needs and demands arise quite often. Even after the changes are brought within the business system, there is still the question to make it known to the public. That is where public relations and campaigning comes in handy.

Promotions and Campaigning
Franchise and communication experts believe that promotions and public campaigning are two different things. The promotions for franchisors are the routine procedures to advertise the product and service and enforce the presence in the market.

Campaigning in public domain may be treated slightly different. For example, a couple of years ago the news of pesticides in soft drinks and unauthorized production of soft drinks by unprofessional people, hit the business of many soft drink manufacturers in the country. Not only did it affect the manufacturing units that were licensed, but also the distributors. In the same way any similar event or issue mooted in public can hit the business of the franchisee, since they are part of the brand and business.

To counter the threats, the franchisors have established strong public relations services and rapport with different agencies. Even if the franchisor does not have its own in-house PR unit, it can avail the services of some reputed agency and do the necessary damage control during crisis.

Franchise Forecasts
Franchisee does not own the brand and therefore it is not franchisees prerogative to do the necessary explanation of the services. In normal situation, franchisee may not be bothered to see how the brand is overall performing. But when crisis knocks the door, the franchisee has to rely solely on the franchisor. Therefore it is necessary for the franchisee to monitor the developments that take place.


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