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Franchise Co-ops

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Here are some of the most common responses from franchise owners who have decided not to join a co-op and why they should reconsider!

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Pooling of funds is not a new concept. This approach of raising capital in which a large amount is pooled together from multiple sources at one time, and used to finance projects, can be dated back to the thriving late 18th century markets in Amsterdam when groups experimented with new ways to band together to gain economic clout.

While most corporate brands today have a sound national media plan, pooling funds through a co-op is still one of the most profitable ways for independent franchisees to become a collective force to be reckoned with!

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Local Advertising Requirements

From a franchisee perspective, you are usually required under an agreement with your corporate brand to spend a percentage of your gross revenue on approved local advertising. If you are part of a co-op you can share this cost with other franchisees who also do business in your area. Again, the beauty of being part of a co-op.

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  • Gloria
    Gloria says #
    Thank you for breaking this down. I've ran TV ads and had no idea that they could possibly be showing in another state or city!
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Let’s be honest. Information is flowing faster than ever and despite the wonders of technology, sometimes it’s a challenge to keep up. So, it’s understood that in the turbo paced culture we operate in, there has to be a defined benefit to slowing down long enough to attend a meeting or join a conference call; especially if you are part of a cooperative.

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  • Rosemarie
    Rosemarie says #
    I agree 100% with this Bernie, "many of us think joining a group will magically fix things..." But when members participate and wo
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So you want to start a franchise cooperative in your local market? Here are simple steps to follow to make it official.

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1. Are you a Franchisee of a national brand?
2. Do you need support in marketing your restaurant(s)?
3. Have ideas but don’t know how to execute them?
4. Would like more interaction with your Field Marketing contact?
5. Think you may be missing out on opportunities to drive sales?

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  • Wendy
    Wendy says #
    Wonderful article. Thanks for posting!