Press Release|ABS
KBRA Releases Research – WBS Franchisees: Leveraging System Strength
18 Mar 2024 | New York
KBRA releases research examining the potential benefits conferred to entrepreneurs by joining a strong franchise system. Although the franchise model comes with costs and success is not guaranteed, advantages can be wide-ranging and include navigating profound economic turbulence.
Key Takeaways
- Brand value, which often includes broad consumer awareness and positive expectations, is a key component of the value proposition provided to franchisees by large and long-tenured franchised systems.
- In addition to a wide range of technological advantages, franchise systems can often offer franchisees an edge in identifying prospective locations.
- The marketing reach of a strong franchise system far outstrips that of a typical independent operator. For some KBRA-rated WBS issuers, the advertising can range from a microtargeted push notification to a Super Bowl commercial.
- Technology can give franchisees a significant advantage over independent operators, attracting consumers with a strong brand message and a predictable, consistent experience across the franchised system.
- A strong franchise system can help franchisees navigate downturns, leveraging the franchisor’s expertise and process efficiencies. Many KBRA-rated WBS issuers were able to recover quickly from the revenue impacts of the pandemic, dynamically addressing stay-at-home restrictions, personal protective equipment (PPE) availability, financial constraints, and other unexpected challenges.
Click here to view the report.