Franchise Brand Ambassadors
Using Celebrities and Other Public Figures to Sale Franchises
What is a Brand Ambassador?
A brand ambassador is a public figure who is retained by a brand to represent that brand in the public. The right brand ambassador will use their own goodwill and reach to expand the brands reach, generate customers, and generate trust in a brand. Of course, there are two sides to every coin. The wrong brand ambassador or improper conduct by the brand ambassador can generate hardship and cause public backlash against your brand.
Franchisor Contracts with Brand Ambassadors
Businesses should always draft and enter contracts with intention. Planning for the future is cheaper than paying for the past. When dealing with Brand Ambassadors, its important to reduce the contract to writing.
Any agreement for services should have clauses that define:
- Scope;
- Financial terms;
- Specific obligations;
- Term duration;
- Cause for termination;
- Warrant and liability;
- Remedies and dispute resolution; and
- General provisions governing the contract.
A franchisor should also develop and implement a Social Media Endorsement Policy (“Policy”) to be attached and incorporated into any agreement.
What are the responsibilities of a brand ambassador?
- Clearly and conspicuously disclose the relationship to the brand;
- Be truthful in the endorsement, and stick to actual personal experiences with the brand or a product;
- Refrain from statements about the product that are measurable unless substantiated by the Franchisor;
- Do the training, provided by Franchisor on the “Do’s and Don’t’s”;
- Comply with standards of conduct as reflected in the Franchisor’s social media endorsement policy; and,
- Waive rights related to the use of the image and collateral that may be developed during the campaign with the Franchisor.
Franchisor Disclosure Obligations
All brand ambassadors are required to be disclosed in the Franchise Disclosure Document as public figures. This disclosure is made in Item 18.
