Franchise Marketing Cause And Effect

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Many franchisers are adding a new ingredient to the formula they give independent operators: a charitable cause.

The tactic, known as “cause marketing,” isn’t new to large companies such as American Express Co., General Mills Inc. and Home Depot Inc., which for years have linked themselves to special charities or social causes and raised funds through promotions or merchandise sales. One of the more visible recent examples was Nike Inc.’s pairing with the Lance Armstrong Foundation to sell yellow “LiveStrong” wristbands, which raised money for cancer research and created a brief, yet memorable, international fashion statement.

Now, many franchisers are picking a cause at the national level — think breast cancer or needy children or world hunger — in an effort to unite franchisees in various markets, convey a consistent image, and boost their profiles and bottom lines. The technique is being used to help franchisees make a splash in the communities where they are based, sometimes even before they open.

“It’s increasingly popular among franchise organizations who are trying to penetrate local markets, who are trying to bond with their franchisees and who are trying to help franchisees to attract and retain employees,” says David Hessekiel, president of Cause Marketing Forum Inc., a Rye, N.Y., firm that connects businesses and nonprofits. Read More