GF Issue 54

marketing, maintenance, IT and other services required by the new franchise business within the local community,” says Brian Kelley. “Often, our franchisees work directly with local social media companies to market their services. They buy insurance from a local insurance agent. They draw foot traffic which, in turn, helps the other small businesses within the shopping centers where Phenix Salon Suites are located.” Intangible gains It’s not just about contributing taxes and creating jobs either; large brands are welcomed into smaller communities yearning for a taste of a high-quality service. In many parts of the world, a McDonald’s or Pizza Hut is a staple of the area and their lack of presence can be felt. Franchise businesses tend to be large and recognizable. People enjoy seeing a famous brand coming to town; it represents more choice, a flavor which they’ve likely enjoyed elsewhere. It also helps to build the profile of a community; fast-food franchises, for instance, are so ubiquitous that it’s hard to imagine any community without one. This is especially relevant after the pandemic, which snuffed out many businesses and saw so many people lose their jobs. It can be seen as a sign of revitalization when large franchises come to town, providing footfall that other shops, services and outlets can benefit from. “Recognized franchise brands benefit other local businesses,” said Bernstein. “When people are buying burgers, they might also need to stop to fuel their car, or they may need the dry cleaner next door.” Franchise brands bring with them the benefit of extensive experience and organization, enabling franchisees to follow a tried-and-tested playbook to embed themselves in a new location and win the hearts and minds of locals. “Franchising can put a city or town on the map,” agrees Brian Kelley. “At Phenix, we hold grand opening events with Gina Rivera, which includes a red carpet, live music, local entertainment, etc. The buzz draws people from all walks of life, it’s incredible.” Local events, charity and supplies Ultimately, getting involved in the local community helps everyone. Nobody loses out; the locals enjoy the jobs, sponsorships and charity initiatives, and U.S. FRANCHISING’S IMPACT ON LOCAL COMMUNITIES Franchisees purchase 21% of their inputs from their local market, and over a third purchase at least a quarter of their intermediate goods locally 65% of franchisees donate to local charities, with donations averaging 6% of their profits U.S.-based franchises donated a collective $1.5bn to charity in the year before the pandemic and raised over $900m over the same period Franchised businesses have sponsored over 18 million hours of volunteer work. “Franchising brings nationally recognizedmanagement tools and infrastructure to the local community, which benefits everyone” franchisees benefit from the size and status of the brand and positive image generated by the outreach efforts. The stability that comes from being part of a much larger franchise network lends itself to a more regular and sustained marketing spend, meaning franchised businesses can comfortably fund and sponsor local events, teams and charities, while significantly growing their profile in the community. “Every franchise I know gets involved by sponsoring local events and giving money back,” says Rowe. “Franchisees pay a check to the mothership for branding and marketing, but it’s up to them to do the local store stuff, whether it’s sponsoring teams, schools or doing free food drops. I can’t think of one franchise that doesn’t devote pages in their operations and marketing manuals to how to engage effectively with communities.” Joe Malmuth agrees, pointing out that Batteries Plus franchisees are community partners actively participating in philanthropic endeavors, whether it be donating turkeys at Thanksgiving to helping to clean up local riverbanks. “The corporate office supports them,” he adds, highlighting an important benefit: “The franchisee has more resources at their fingertips and they don’t have to start from scratch and reinvent the wheel.” GLOBAL FRANCHISE.COM 13