Nonprofits in the Franchise Industry

It may surprise you to learn that Nonprofit groups around the country own franchises, like Blimpie Subs and Papa Murphy’s Pizza. Nonprofit groups, in a more recent trend, are purchasing franchises, and using that revenue from the outlets to support their social missions.

For example, Affordable Homes of South Texas, a nonprofit that constructs houses for low-income families, opened a Blimpie sub shop in downtown Weslaco, Texas. Affordable Homes of South Texas turned to exploring new options for funding when there was a drop in federal housing grants earlier last year.

Other charitable organizations view it as an opportunity to train and employ people in their community. The Dale Rogers Training Center, an organization dedicated to providing jobs to over 1,100 people with disabilities annually, recently opened a Papa Murphy’s pizza franchise near the charity’s base in Oklahoma City.

Customarily, national franchise brands have been contracted solely with individuals, but that is certainly changing. According to the recent NY Times article, more than a dozen national chains since last May have sent representatives “to explore franchising opportunities with nonprofit groups in SourceAmerica, a network of 1,300 organizations serving the disabled, at its annual meeting in San Antonio.”

Do nonprofits own a franchise in your area? We would love to hear your comments on this franchise trend!

Hyperlocal Marketing: What is it and how can it help your business?

There has been a lot of talk recently in the marketing world about a new concept: hyperlocal marketing technology. Hyperlocal marketing uses the GPS feature and a mobile app on your smartphone to send targeted messages from a nearby franchise. The marketing is hyperlocal because the messages are for a small, specific area. This specific area can be specified through setting virtual perimeters around a specific location, an action referred to as “geofenching”.

Geofencing technology allows businesses to track when customers enter a defined area nearby their location through the GPS software on a person’s smartphone.

This technology means big things for a franchise.

Say you’re a Papa Murphy’s franchise in the Charleston,SC area. You can set up specific perimeters around your location so that when someone enters your virtual “fence”, you can send that discounted pizza coupon directly to them via their mobile phone. As they are within say one mile of your business, they will receive an alert on their phone with the pizza coupon and, hopefully, stop in at your shop. The key here is that these are also customers who have opted-in to receive offers; therefore, you are reaching a market of people who are already interested in special deals and offers.

The rapid growth of smartphone technology has delivered an entirely new platform to marketers. Businesses are now reaching customers in ways never thought possible in the past. How can this be translated to your business?

What are your opinions on hyperlocal marketing? Do you think that this could lead to an overflow of information to customers, causing them to become disenchanted, or is it an effective marketing tool that has an ever-growing presence in our future?

Papa Murphy’s Gets Coveted #27 Ranking

Papa Murphy’s is used to getting accolades. For the last few years, the business has been booming and growing exponentially. This year, it has snagged its all-time high of #27 on Entrepreneur Magazine’s “500 Franchise” List. Just four years ago, this restaurant franchise hadn’t cracked the top 50! They’ve also managed to open over 200 new stores in the United States since 2008, which has been during the height of the Recession.

We’re happy to see the success of Papa Murphy’s franchise because we believe their business plan is the real deal. With decreased costs from other pizza chains, it is able to offer delicious and affordable food without all the overhead. It’s also great for the consumer because it’s the carry-out convenience that they’re looking for. Papa Murphy’s also stands out in other ways. Their franchise is committed to helping out franchisees during every phase of ownership–with week-long training, co-op advertising, meetings and a toll-free line available to their franchisees at all times.