“Effective philanthropy requires a lot of time and creativity – the same kind of skills and focus that building a business requires” (Bill Gates)
It is often said that the key to successful franchising is community – creating an engaged community of franchisees who are fantastic ambassadors for the brand and who go out and forge strong relationships with their own local communities. And many franchise brands go a step further, in looking to improve lives within communities through philanthropic efforts and charitable giving.
Perhaps one of the most high profile charitable franchise brands would be McDonald’s, who since 1974 have been raising money to improve the lives and well being of children through the Ronald McDonald House Charities. Funds are raised via a variety of sources, including a proportion of sales of Happy Meals, customer donations, employee giving schemes and franchisee local initiatives. Donating a percentage of product sales is a charitable strategy adopted by a range of franchise businesses, from UK based snack and confectionary distribution franchise ChariSnack who partner with neonatal charity Bliss and provide the charity with a percentage of sales of all products sold, to Firehouse Subs who have their own Public Safety Foundation and are donating a portion of all sub sales in all US locations in 2023 to provide life saving equipment to first responders.
Other franchise brands are steering their philanthropic efforts in other directions, through practical support for communities in need and brand-aligned causes. Fantastic Services is a home services franchise with a commitment to sustainability and plants a tree for every new sign up to its membership programme, supporting the Pacajai REDD+ Verified Carbon Standard (VCS) reduction project which works to prevents unplanned deforestation in native forests, and attempts to implement pastures. Human Bean coffee franchise operates a Farm Friendly Direct program in which the franchisor purchases beans from coffee growers at a premium, with that premium then being invested directly into farm and community improvement projects. And British sandwich shop franchise Pret supports a number of homelessness and poverty charities, donating surplus food to shelters and projects as well as funding equipment and charity job roles.
A rapidly increasing number of today’s consumers make buying decisions based on brand values and their awareness of a business’s commitment to sustainability and social responsibility. A 2019 Aflac Corporate Responsibility Survey looking at consumer and investor habits reported that seventy seven percent of consumers are motivated to purchase from companies committed to making the world a better place, whilst seventy three percent of investors stated that efforts to improve the environment and society contributed to the investment decisions that they made. This means that franchise brands that show an ongoing commitment to charitable causes and giving back to communities are likely to win favour when customers are choosing where to spend their hard-earned money. It’s also highly likely that a company’s philanthropic efforts could well be amongst the deciding factors when a prospective franchisee is weighing up comparative franchise opportunities side by side and deciding which franchise to invest in.
Once a franchisee comes on board, the whole-brand approach to charity, community activity and project support can also give the new business owner an advantage within their local territory area. Links with organisations and foundations may already have been forged, and being part of a brand which is known for giving back can really enhance the franchisee business’s reputation and help drive customers through the doors. Purpose over profit, or purpose alongside profit, franchise brands who are demonstrating that the two “P’s can successfully exist alongside each other are not only creating a real force for good but also a highly attractive investment opportunity for would-be franchisees.
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