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Duration: 1 hr 25 mins plus activities

Overview

This module covers the following topics:

Four P’s of marketing;
Marketing in a franchise system;
What is a franchise marketing fund?
Typical marketing fund costs;
Marketing funds and the Franchising Code of Conduct; and
Local area marketing requirements.

Learning Outcomes

In this module you will develop an understanding of the role of marketing in a franchise system, the responsibilities of franchisees and franchisors to undertake marketing, and requirements under the Franchising Code of Conduct for the operation of a marketing fund and the type of costs that may be incurred by a marketing fund.

Initial Marketing and Opening Promotions

Review Initial Marketing and Opening Promotions video below. Download the video transcript (PDF 116KB).

Module Three Learning Activities

Activity One:

If you are an existing franchisee:

Review your franchise agreement (those parts that deal with marketing) and answer the following questions;

OR, if you are thinking of buying a franchise:

Ask your franchisor:

How is your marketing levy charged?
Is this paid into its own bank account?
What administration costs are charged to the marketing fund?
What activities are paid for by the marketing fund?
What, if any, local area marketing obligations exist?
What local area marketing do you expect to do for your business?

Activity Two:

Review the typical costs charged to a marketing fund (PDF 36KB).

Activity Three:

Read Chapter 11, ‘Branding Eagle Boys with a Bang’ (PDF 709KB) of Tom Potter’s book, the Eagle Boy’s Story.

Next, view Eagle Boys Dial A Pizza founder and former franchisor Tom Potter discuss the franchise’s success with guerrilla marketing in the video. A transcript of the video is available here (PDF 121KB).

Activity Four:

Review Q&A with Multi-Unit franchisee Brett Roveda from Gloria Jean’s Coffees. Brett discusses how he approached initial marketing when opening his two stores, as well as local area marketing initiatives he’s found work for him. A transcript of the video is available here (PDF 42KB).

Activity Five:

Review the legal obligations in terms of pricing available on the Australian Competition and Consumer Commission website.

Self Assessment Quiz

Test your knowledge of this module with this assessment quiz. To successfully complete this module and obtain a Certificate of Completion you need to get a score of 85% or better.

If you don’t wish to test your knowledge, you can proceed directly to Module Four: Managing Growth and Identifying Opportunities.

Introduction to Small Business and Franchise Marketing Resources

Typical costs charged to a marketing fund
Chapter 11, ‘Branding Eagle Boys with a Bang’, p 141-146, from The Eagle Boy’s Story by Tom Potter
Legal obligations in terms of pricing available on the Australian Competition and Consumer Commission

Franchise Business Management Essentials Module Three: Introduction to small business and franchise marketing