Global Franchise 10.3

At BoConcept, reputation analysis systems are integral to ensuring that the luxury brand experience is maintained and delivered consistently. Does it scale? So, does luxury really sit comfortably with replication? Absolutely, but the secret does seem to be to prioritize consistency and quality over growth. And keeping sight of the unique personalized experiences consumers associate with luxury brands should be part of that. “If people are happy, engaged, and using the studio the way it’s intended, everything else takes care of itself,” says Stephen Smith. The wellness industry lends itself particularly well to ultra- premium franchise models. JT Tatem explains why. “Health, wellness, and beauty services require guidance and expertise. People are willing to pay for that. If the model is repeatable, it lends itself to franchising.” Rafael Ramsa reiterates the earlier point, that there are different ways to view luxury too. “Even with a niche product, you can find many small towns where offering must be attractive and impeccable, but delivery is what matters. Many brands can offer quality; what differentiates is the service experience.” Staying in control When it comes to scaling, franchise leaders are overwhelmingly in agreement on one thing: the path to successful ultra-premium franchising hinges on brand control. Consistency is central to any franchise, of course. However, for business models with a highly discerning customer base expecting attention to detail, the importance of consistently high-quality experiences cannot be overstated. SvenWallén lays out how this works in practice at Fantastic Frank. “For us, it’s essential to grow with quality and creativity. Our brand must be consistent and very clear. All imagery, presentations, and newsletters produced across our offices must align with our brand strategy. This means that everyone in our franchise team – including brokers, entrepreneurs, photographers, and marketing staff – must be skilled and trained at the Fantastic Frank Academy. Having franchisees who cooperate and support one another is also vital to our success. By maintaining high quality, a clear market position, strong teams, and a learning organization, we can successfully scale the brand.” Wallén continues, “Franchisees have the freedom to tailor their local strategy to the market – deciding which services to offer, which market segments to target, and how to build their team. However, they must follow our manual, and the most vital part is our brand strategy: how to use the brand in the right way, how we select our listings and projects, and how we present them through our signature property portraits.” Stephen Smith digs deeper into why this is so important. “It’s about the customer culture you’re building. You have to be very intentional about the experience you’re creating.” Rafael Ramsa, Chief Executive Officer of luxury ice cream brand Aubi & Ramsa, is just entering the franchise arena. “Of course you need mechanisms to control, protect, and support the brand. When you execute with excellence and quality, you attract luxury,” he points out. it works. Luxury is also perceived differently today. You still have high-end brands in couture, watches, and cars, but there is also affordable luxury in cosmetics and food. There are opportunities to do luxury on a small scale almost everywhere.” Picking the right people We’ve established that personal interactions are integral to luxury brands, but who are the people investing in these ultra-premium franchise models? And what makes an ideal franchisee? Once again, the ability to maintain and champion the brand is key. “Our franchisees must truly understand the brand, while also possessing strong business skills and solid finances. Otherwise, it will be difficult to maintain our brand quality and the drive required to succeed.” “About 90% of our franchisees come directly from our customer base,” observes Stephen Smith. “I’ve been in franchising a long time, and that’s exactly what you want. It’s organic growth.When customers love the brand so much that they want to own it, that’s a very healthy system.” Fantastic Frank management team Photographer: Magnus Pettersson Photographer: Emily Laye Photographer: Nadja Endler Photographer: Luis Nobre Guedes 74 GLOBAL FRANCHISE Issue 10.3