Marketing Plan

✅ Short Definition

The term Marketing Plan refers to a written strategy outlining how a franchise system or franchisee will promote its products or services to attract and retain customers. It typically includes advertising objectives, marketing budgets, promotional methods, and target audience details.

🧾 Long Definition

In franchising, a Marketing Plan is an essential document that guides the promotional and advertising activities of both the franchisor and the franchisee. It defines how the brand will be positioned in the marketplace and how marketing efforts will drive growth, customer loyalty, and brand recognition. The plan often includes both national and local marketing components—national campaigns managed by the franchisor and local initiatives executed by the franchisee. It specifies key marketing objectives, outlines the media channels to be used (such as digital advertising, print, radio, and social media), and details the required budget contributions from franchisees. The Marketing Plan ensures consistency across the franchise network while allowing room for localized marketing efforts that align with the franchisor’s brand standards. This plan is usually reviewed and updated annually to respond to market conditions, competitive trends, and consumer behavior.

Additional Definition: Generally, a 'marketing plan' is a written document that details the necessary actions to achieve one or more marketing objectives. In regard to franchising, the marketing plan is a term that is often used as a short-hand way of describing the second element of the term “franchise” under the FTC Franchise Rule.  Please also see Franchise

🕰️ History and Usage

The Marketing Plan has long been a cornerstone of successful franchise systems. In the early decades of franchising, marketing was often decentralized, with each franchisee promoting their own location independently. As franchise networks grew, franchisors began developing unified marketing plans to maintain consistent messaging and leverage economies of scale. By pooling resources into cooperative marketing funds, franchisors could produce national advertising campaigns that benefited all franchisees. Today, modern Marketing Plans incorporate digital strategies, customer data analytics, and social media engagement to maximize visibility and adapt quickly to changing consumer preferences. Many franchisors now require franchisees to follow specific marketing plans to protect brand integrity and ensure efficient use of marketing funds.

Learn More At: The Educated Franchisee, 3rd Edition

❓ Five Common Questions About Marketing Plan

1. 1. Who creates the Marketing Plan in a franchise? – The franchisor usually develops the overall plan, though franchisees may contribute input for local marketing initiatives.
2. 2. Is participation in the Marketing Plan mandatory? – Yes, most Franchise Agreements require franchisees to follow the franchisor’s marketing plan and contribute financially to marketing programs.
3. 3. What does a Marketing Plan typically include? – It includes marketing goals, strategies, budgets, target markets, timelines, and performance metrics.
4. 4. How often is the Marketing Plan updated? – Typically once per year, though it may be adjusted more frequently to respond to market changes.
5. 5. Can franchisees run their own marketing campaigns? – Usually yes, but only with franchisor approval to ensure compliance with brand standards and messaging.

📝 Examples of Common Usage for Marketing Plan

• 'The franchisor provides an annual Marketing Plan that outlines national advertising campaigns and local store promotions.'
• 'Each franchisee must contribute 2% of gross sales to the marketing fund as specified in the Marketing Plan.'
• 'Failure to comply with the approved Marketing Plan may result in a breach of the Franchise Agreement.'

📌 Summary

The Marketing Plan serves as a roadmap for promoting and growing a franchise brand through coordinated advertising and strategic outreach. It ensures consistency, efficiency, and brand alignment across all franchise locations while empowering franchisees to attract customers in their local markets under the franchisor’s guidance.