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What is a Green Franchise?

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  • Written By: Tara Barnett
  • Edited By: Jacob Harkins
  • Last Modified Date: 03 November 2016
  • Copyright Protected:
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    Conjecture Corporation
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A green franchise is a type of chain business that attempts to market itself by highlighting its positive or minimal effect on the environment. It is a franchise because it is related to other businesses in other areas with the same name and the same kinds of products. This kind of franchise is different from others because regardless of the product it sells or the service it provides, its primary selling point or marketing strategy revolves around impact rather than quality.

Green franchises have a number of alternative names, including eco-friendly franchise and environmentally friendly franchise. Any franchise that advertises how its products or services positively impact the environment will qualify, but the term is usually not used for franchises that merely donate to environmental causes. Additionally, there are also businesses that by nature are environmentally friendly but do not actively advertise its green practices.

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Almost any kind of business could be called a green franchise, from food franchises to cleaning franchises. The primary difference between a green franchise and a normal franchise is approach to the product and marketing. For instance, a green cleaning business must not put toxins into the environment and may be expected not to use man-made chemicals when cleaning, whereas a normal cleaning business might freely use such substances. Additionally, it is important for the business to not only employ green methods, but also to actively market itself by highlighting these environmental friendly measures. These qualities provide green franchises with an edge in cultures that are concerned with environmental impact.

Potential green franchise owners should properly research the intended site of the franchise. This kind of franchise does best in a location where a significant number of people are concerned about the environment and are willing to pay a higher price to decrease environmental strain. Green products are frequently more expensive than those not marketed as green, and so it is often difficult to convince new customers to shop green. Customers may never even try to shop at a business if it markets itself as green because they expect the prices to be higher, and it may be to a business’s benefit not to market itself this way in certain situations even if the product is, in fact, ecologically friendly.

Like most other franchises, a green franchise is usually sold to the franchise owner under certain conditions, such as paying a royalty fee or obeying certain rules. Franchises are often seen as good business opportunities because customers may already recognize the brand, and many people enjoy shopping from chain stores. Unfortunately, many people who are concerned with living a green lifestyle are also concerned with shopping only at local establishments, which may not include franchises. This can significantly cut into a green franchise's potential customer base, and so it is important for franchise owners to establish themselves in the community to negate this effect.

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