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The data is in! Consumers are willing to pay extra and be more loyal to brands that proactively protect the environment. While that ethos sounds compelling to many, it’s not always clear what being eco-friendly means or how it translates into starting a franchise. Without getting too nuanced, here’s a broad definition of what running an eco-friendly franchise means, according to the Library of Congress.
“Green businesses, also called sustainable businesses, seek to balance profit with the health of the planet and its various populations.”
As an increasing number of consumers and brands alike are becoming attuned to the environmental impact of running a business, many people looking to become franchise owners are putting their sights on this type of organization. Here’s how to find a more sustainable way to start and run your franchise.
Why Choose an Eco-Friendly Franchise?
Before getting into what eco-friendly franchises look like, let’s talk about why you might want to start one of your own. In a 2023 report, PDI Technologies found that consumers want more sustainability in the products and businesses they work with. Specifically, their report found that:
- 68% of American consumers are willing to pay more for sustainable products, up 4% since 2021.
- 74% of consumers said they care about the environmental impact of their products.
- 74% would likely sign up for a rewards or loyalty app to reduce their carbon footprint, wherein loyalty program members bring in 30% greater value than non-loyalty consumers.
In other words, the vast majority of consumers appreciate when organizations emphasize reducing the environmental impact of running a business and focus on sustainability instead. The challenge is that while sustainability is preferred, 79% of consumers say they don’t know how to identify these eco-friendly companies.
Eco-Friendly Franchise Operations
Eco-friendly franchise operations are ideal because they allow franchisors and franchisees to work together as a team to succeed at offering more sustainability in their business practices. Through local and corporate collaborations, franchises have a higher chance of success by showcasing how they’re more environmentally conscious.
Being proactive with sustainability allows franchisees to take the first step towards operating more eco-friendly. Looking for alternatives and getting a head start can offer a competitive advantage and be more cost-effective in the long term.
Engaging with consumers allows franchisees to showcase their efforts and gain consumer feedback, driving loyalty and educating the market at the same time. Allowing consumers to see your efforts for running an eco-friendly business as a franchise owner is a powerful way to solidify your brand values and gain traction in your market.
Continual validation of your efforts from third parties can further cement your franchise’s goal of providing more eco-friendly operations. For example, leaning on suppliers and other partners in your community creates an opportunity to expand your footprint as an eco-friendly business further.
Eco-Friendly Franchise Industries
As you search for a new franchise, you’ll be surprised to find how many franchises are available with eco-friendly options. There are many franchise options across all industries, from food franchises to cleaning franchises and franchises that impact the core family’s health, including children franchises and pet franchises. Finding the industry that best aligns with your interests comes first. From there, you can talk to the franchisors and ask them specifically about their eco-friendly options and sustainability initiatives.
Operating eco-friendly takes many approaches, from the products and suppliers chosen to how your franchise shows up daily and the organizations that receive kickbacks from their profits. A franchise can be eco-friendly in many ways. Ultimately, the best approach to finding the right eco-friendly franchise for you is to discuss it with the franchisors and make your selection by doing a healthy amount of research. Once found, inform the consumer base, and, as the data shows, sales will follow.
Kimberly Crossland is the founder of Roadpreneur and Cruisin' + Campfires, two companies designed to keep families together and living in freedom through travel and entrepreneurship. The goal of both businesses is to inspire meaningful change through the power of a strategic, thoughtful approach to life and business. In her free time, you can find her looking for a new adventure together with her two boys.