Posted by Elena del Valle on August 16, 2006
By Elena del Valle, MBA, principal, LNA World Communications
Elena del Valle, MBA, principal, LNA World Communications
As part of a national or international franchise chain, franchisee stores are often required to meet certain contractual obligations and standards, offer a set line of products or services, purchase from specific vendors, display pre-approved materials and have a company “look.” In exchange for their compliance with those obligations they reap the benefits of the larger company and its support in the form of an established brand name, negotiated wholesale prices, corporate training, and other advantages that drive their business model.
In spite of the corporate franchise advantages at the end of the day franchisees are responsible for their business success and building a strong customer base. To do this they must understand their local market base and cater to it. For many businesses, especially those offering products and services catering to young audiences, Latinos represent a highly desirable market because they have growing buying power, demonstrate elevated brand loyalty and are superior consumers, spending a higher than average percentage of their income on certain items.