The new year is off to a positive start for those in the business world, and investors are going into 2025 with a renewed sense of optimism. The combination of the Federal Reserve lowering interest rates last year and the new administration’s business-friendly policies have industry insiders predicting “a flurry” of dealmaking activity in 2025. Along with a more positive business climate comes increased confidence from investors. With more franchise mergers and acquisitions (M&A) on the horizon for 2025, it’s important to make sure that your franchise has a solid brand strategy in place. Having clear brand positioning, differentiation and a strong value proposition will make your business attractive to both investors and potential franchisees and set the stage for post-acquisition success.
Why is the business climate becoming more positive?
The new administration is business friendly, which has investors feeling confident about the year ahead. Debt relief programs, cost-cutting measures and lowering taxes are all steps that create a more positive environment in which to do business. The administration also supports the franchise business model, which is a win for the franchise community. This combination of factors is driving optimism among investors as we head into 2025, particularly private equity firms.
Why does franchise brand strategy matter?
Private equity firms are on the lookout for proven concepts with ROI potential to add to their investment holdings. A franchise brand with an established identity and strong strategy behind it is appealing to them because it’s viewed as scalable and having some degree of stability. Strong brands also have the trust of consumers, giving them a firm foundation for future growth. Franchises with undefined branding are less desirable acquisitions because they often have a lower franchise valuation and are harder to integrate into a strong investment portfolio.
What are some key elements of a winning franchise brand strategy?
Although it might sound intimidating, there are simple ways to tell if your current brand strategy is on point. A winning brand strategy incorporates the following:
- Clear and consistent branding that builds your long-term success:
- Who are you? Why do you matter? Developing a compelling story, vision, mission and values that resonate with both customers and franchisees will attract those your brand serves and let them know exactly what it’s all about.
- Maintaining consistent visual identity and messaging across all franchise locations will ensure you can cut through the noise and drive greater brand recognition.
- Brand differentiation that makes your brand stand out:
- Deliver distinctive and memorable brand experiences that highlight your unique brand promise and stand out in the market. Ensure every customer interaction reinforces what makes your brand special. Remind prospective franchisees how special your brand is to your customers.
- Leverage customer insights to refine brand strengths. Gather and analyze feedback to identify which elements of your service or product are resonating most with your customers. Use those insights to amplify your differentiation.
- Create emotional connections by focusing on brand interactions that leave a lasting impression, fostering loyalty and advocacy unique to your brand.
- Unified messaging in both local and national marketing strategies:
- Balance national campaigns with localized marketing to address unique community needs and preferences.
- Give franchisees the tools and insights they need to create effective local promotions that are also on brand.
- Leverage data and review analytics to identify trends and optimize strategies.
- Scalability and adaptability:
- Create processes that are easy for franchisees to replicate while allowing them the flexibility to adapt to their local market.
- Regularly update systems and tools to stay ahead of industry trends.
- Develop assets and messaging tactics that can be shared with franchisees to help them stay on brand and help you drive brand value.
A strong franchise brand strategy helps you stand out in a crowded market. Hot Dish Executive Creative Director, Michelle Rollins, says, “For franchise brands, brand equity is the invisible currency of success — a powerful blend of trust, recognition and emotional connection that transforms local businesses into trusted household names and companies into leaders.”
Your franchise brand strategy should also make you ready to grow. Establishing your brand identity and creating a plan of action to back it up will support a more seamless expansion post-acquisition.
How can Hot Dish Advertising help?
Hot Dish has 25 years of experience helping franchise brands stand out from the crowd. “We’ve seen the value of franchise brands grow exponentially when they focus on a brand strategy that is clear and ownable and then execute on that across everything they do,” says Hot Dish President and Partner, Jen Campbell. “That takes discipline, and the best franchises out there know that. But it pays off in the long run. Brands must invest the time to get it right or you live in a sea of sameness and the value can decline or stay stagnant.”
Hot Dish would love to help your business develop a rock-solid franchise brand strategy for 2025. We offer a variety of services, from a basic audit of your current plan to a full strategic partnership. Connect with us today to make sure you have a growth-ready, deal-ready business in 2025.
