There are two separate administration levels that determine advertising placement and spending for the franchise industry. Franchisors collect advertising fees from franchisees to engage in regional and national advertising while their franchise contracts demand that all franchisees also spend approximately
two percent of gross income in locally placed promotions. Although many franchisees automatically assume the local promotions they must carry out are restricted to conventional media types such as newspapers, magazines, radio and television ads, the majority of franchisors use online communications as an integral part of the local territory advertising mix.
The information contained within this report concentrates exclusively on email and social media marketing
adoption and implementation rates of franchisees alone, as opposed to franchisors. As part of their national advertising mandate, franchisors habitually maintain massive online presences expressed through email marketing newsletter campaigns as well as social media interactions on all major networks including Facebook and Twitter; to combine the statistical data from franchisors with that of franchisees would result in difficulty assessing the participation of franchisors in online marketing activities. Local franchisees often lag far behind in their adoption of online promotions, but the gap is closing and there is great opportunity to show franchisees that email marketing
is the most effective way to spend their local ad dollars.