Consumers as a whole are more likely to support companies that have environmental programs and initiatives in place. As a result, franchises are seeking to become greener and energy efficient. Find out more in this report.
According to the latest statistics from the U.S. Energy Information Administration, about 10% of total U.S. energy consumption is from renewable energy sources. About 55% of U.S. renewable energy use is by the electric power sector for producing electricity, and about 15% of U.S. electricity generation is from renewable energy sources.
Studies have shown a significant percentage of consumers are more likely to support companies that have environmental programs and initiatives in place. Consumers by-and-large expect companies to be environmentally responsible as part of their business method. Thus, franchises have figured out that going green, or at least upgrading their sustainability efforts, isn’t just good public relations—it also helps their bottom line.
Hotels Make Reducing Energy Usage a Priority
Hotels, as you can imagine by their sheer size and worldwide presence, are major trendsetters in the franchise industry. As of the end of 2017, there were about 5,000 U.S. hotels in various stages of development in addition to ones already in use.
One way these giants of the franchise world seek to greater appeal to current and potential customers—as well as increase their revenue—is by better energy efficiency, especially important because energy is typically the second highest operating expense in hotel ownership.
In a multi-part series, Hotel Management dove into how hotels are managing their energy systems.
The primary way discussed in the piece is incorporating smart technology that can sense when it needs to be on and when it doesn’t. “Occupancy detection-based thermostats have been around for a while now but what’s new is the intelligence that’s been incorporated in order to save energy without compromising guest comfort,” says Michael Serour of Verdant Environmental Technologies.
Another way covered is installing solar panels. “First of all, being green is the right thing to do,” says Justin Jabara, VP of development and acquisition for a hotel management company. “Secondly, being green is something that also impacts us financially. Our guests are looking for it so we see it on the top line but also it reduces utilities and other costs so more cash flows to the bottom line.”
This move towards green energy reflects a broader shift in the hotel industry, a trend travel insights company Skift calls “luxury that’s leaner and smarter.”
The Food Industry Seeks to Waste Less
Another franchise industry seeking to become more efficient is food. According to the Environmental Protection Agency (EPA), quick-service (fast food) restaurants can use up to 10 times more energy per square foot than other commercial buildings. Below are major areas the EPA notes as significant impacts on a restaurant’s energy consumption:
- Refrigeration equipment
- Fryers and other cookers
- Food holding cabinets
- Lighting
- HVAC
In addition to the equipment itself, the food and the items used in its preparation have seen a more sustainable makeover as well.
Filta is one of the environmentally-conscious food franchises that doesn’t directly produce food. The franchise utilizes three models in order to extend the lifespan of cooking oil to reduce waste. The offered services also help those in the food industry efficiently clean deep fryers, reduce cooking oil spills during the recycling process, as well as collect used cooking oil so it can be recycled into biodiesel.
As we go into the future, the Green Restaurant Association has developed certification standards that it hopes provide “a pathway for the next steps each restaurant can take towards increased environmental sustainability.” The standards cover seven categories:
- Water Efficiency
- Waste Reduction and Recycling
- Sustainable Durable Goods & Building Materials
- Sustainable Food
- Energy
- Reusables & Environmentally Preferable Disposables
- Chemical and Pollution Reduction
Virtually Every Franchise Industry Has a Green Option
"We understand the environmental impact of improperly discarding electronics that may sit in landfills for years. Our company is focused on stopping that cycle and offering customers the opportunity to be more eco-conscious, while enjoying top-notch products."
~ Jim Muir, president of Experimac
Beyond the two featured above, virtually every franchise industry has been touched by the pursuit of greener living.
One of the most popular franchises in the space is SuperGreen Solutions, a franchise completely built around energy efficiency. SuperGreen Solutions helps businesses save money on utilities by implementing complete sustainability efficiency solutions, ranging from wind or solar power to water filtration and ventilation systems.
As noted above, technology franchise Experimac employs environmentally-friendly methods by employing a core business model of recycling. “We help not only by fixing cracked phone screens, increasing computer speeds and providing solutions…but also encouraging customers to keep the Apple products that they have for longer, thereby keeping these items out of landfills,” says franchise president Jim Muir. “These are just some of the ways for users to be part of the green movement without too much effort.”
NaturaLawn seeks to lessen the impact of an industry often associated with chemical use: lawn care. Its franchisees conduct a lawn care service business that primarily uses organic-based treatments.
Cleaning is another franchise area dramatically affected by the push towards green. For instance, Oxi Fresh employs safe solutions, energy efficient equipment, and conserves 95% of the water that traditional steam cleaners would waste during cleanings. Chem-Dry is another franchise that utilizes organic cleaners and is third-party certified as environmentally-friendly.
And while you wouldn’t think about the automotive franchise as environmentally-friendly, Honest-1 Auto Care seeks to change that with its “Environmentally Sustainable Actions Program,” which ensures that responsible standards and practices are applied in four key areas: Pollution Prevention, Recycling, Resource Conservation, and Eco-friendly Services & Products.
Terms and Programs to Look For When Vetting Green Franchises
There’s a myriad of organizations that have been founded to provide oversight of businesses in the area of sustainability. Below is a look at a few of the main ones along with a few terms that often come up when researching green efforts.
Carbon Footprint: A business or franchise’s carbon footprint is the total amount of greenhouse gas produced through their activities. This is usually expressed in equivalent tons of carbon dioxide (CO₂).
Energy Star :Energy Star is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy that promotes the use of energy-efficient products and services. Energy Star-marked appliances and electronics meet the program's strict energy-efficiency guidelines.
Fair Trade: Fair Trade USA is a nonprofit and third-party certifier of transactions between the U.S. and international suppliers. The Fair Trade Certified™ label guarantees consumers that strict economic, social and environmental criteria were met in the production and trade of an agricultural product. Fair Trade Certification is currently available for a wide variety of products.
Green America Seal of Approval: Green America is a nonprofit organization with several programs created to carry out the mission of harnessing economic power in its various forms to create an environmentally sustainable society. A business that bears this seal has successfully passed the Green America screening process and has been deemed socially and environmentally responsible.
Green Seal: Founded in 1989, Green Seal is a nonprofit organization that provides environmental certification. The mission of Green Seal is to use science-based programs to empower consumers, purchasers and companies to create a more sustainable world. The Green Seal was developed to help shoppers find “truly green products.”
Green Seal certified its first products in 1992 and provides an extensive weekly-updated list of products it has certified.
Greenwashing: Greenpeace, an international nonprofit organization focused on environmental issues, defines greenwashing as “the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service.” Most often, it takes place when a company spends a substantial amount of money advertising its “green” qualities, but hasn’t implemented business practices that back those claims up.
LEED: Developed by the U.S. Green Building Council (USGBC), LEED stands for Leadership in Energy & Environmental Design. It’s an internationally recognized green building certification system, providing third-party verification that a building or community was designed and built with sustainability in mind.
According to the USGBC, LEED can help:
- Lower operating costs and increase asset value.
- Conserve energy, water and other resources.
- Be healthier and safer for occupants.
- Qualify for money-saving incentives, like tax rebates and zoning allowances.
Sustainability: Sustainability is using natural resources for current needs and wants without compromising their availability for future generations.
The U.S. Green Building Council: The U.S. Green Building Council is a coalition of builders and environmentalists, corporations and nonprofits, teachers and students, lawmakers and citizens who have united in the effort to change the ways buildings and communities are designed, built and operated.
Green Franchise Investment Information
Please note: the provisions and fees illustrated below (and in linked pages) are some of the most common and not a complete listing. Please review the Franchise Disclosure Document (FDD) of a franchise for all of the provisions and fees related to investing in that particular franchise.
Initial Investment
Franchisors offer estimates in their FDD based upon their experience establishing, and in some cases operating, units. However, prospective franchisees should remember these estimates are just that—an estimate. Prospective franchisees should review the figures presented with a business advisor, taking into consideration their unique circumstances, before entering into a franchise agreement.
Ongoing Fees
In addition to what you spend to start, there are a number of expenses required for the successful maintaining of the business. There are also a number of ongoing fees that are specific to being a part of the franchise system. The most common ongoing fee common to franchises is a royalty. Royalty fees are assessed for the continued use of the franchisor’s trademarks and patented processes.
For more franchises in several different industries that feature sustainability at the core of their business, take a look at our listing of Green Franchises.
Green and Eco-Friendly Franchise Opportunities for Sale
Kwik Dry Carpet & Air Duct Cleaning
Provide carpet cleaning, upholstery, air duct cleaning, tile & grout cleaning, disinfecting services & more with our total cleaning multi-revenue business!
Lawn Doctor
Thumbs up to an incredible franchise opportunity! Partner with the leader in a stable, growing industry!
Best.Energy
Fight Climate Change. Build Your Business. Profit With Support. Best.Energy is seeking new partners!