Lecture 13: Franchise Dynamics

Question 1

What is a Franchise , Franchisor, Franchisee?

Answer 1

Franchise:
- Is a large multinational company that lends its name and products to other people who run the stores and pay them a percentage of sales and various other fees.

Franchisor:
- This is the company that owns the trademark and they are the big name brand selling franchises.

Franchisee:
- The person that buys the franchise location/business from the franchise and operates it.

Question 2

What is Brand personality by Aaker?

Answer 2

Brand Personality is what defines user persona. It is representative of the typical user makeup of the people that shop there. (Lulu Lemon - Mania, Healthy Lifestyle, has their life together.

Question 3

What is Brand Diffusion?

What is a Separate Brand

Answer 3

Brand diffusion is the creation of a new brand that shares elements of the old, including words, color, tone.
- Less money to build brand
- More risk to the main brand
- Less distance to the main brand
- Less

A Separate brand is a completely separate brand that has minimal connections to the main brand.
- More money to build brand
- Less connection to main brand
- Freedom to position
- Less risk to main brand