New Article Online: Compulsory Promotions for Franchisees and why they work

JEM Promotional Products have added another article to our Resources library with the focus on Compulsory Promotions for franchisees and why they work. Here is a sneak preview:

At JEM Promotional Products we work with many franchises not only on their core merchandise range but also on their in-store promotions. Franchises are in a unique situation when it comes to planning their marketing campaigns; although each franchise has a different owner they are all using the intellectual property of the Franchise owner and therefore the Franchise owner must grant permission for the franchisee to use their brand name in any marketing.

Many franchises work where the franchisee pays a marketing and advertising levy which is normally a regular flat or percentage-based fee paid into a centralised advertising or marketing fund (Franchising Magazine, March/April 2009 Vol.22/NO.2). It is up to head office to determine how best to spend this money so that each franchisee benefits equally.

One of the most difficult decisions is picking which advertising medium will benefit everyone equally; putting a newspaper advertisement in a local paper in Queensland will not help a franchisee in Western Australia. Many franchises opt to use the money for an in-store promotion where the customer gets a free gift with purchase as this is a fair way of spending the marketing funds. Many franchises have what they call a Compulsory Promotion which is separate from the marketing and advertising levy.

We define a Compulsory Promotion as a promotion that the franchisee must participate in by purchasing the minimum number of promotional products required however the franchisee is not limited to the maximum number they can purchase. No franchisee is exempt from participating in the promotion without a valid reason.

A good example is a Free Gift with Purchase Promotion. Head Office may determine the promotion, franchisees pay a certain amount to be involved and this amount can be part of or on top of their marketing and advertising levy.

The article continues on our website with:

• Why Compulsory Promotions work
• Tips to improve your Compulsory Promotions

Follow this link to read the full Compulsory Promotions for Franchisees and why they work article online.

New Article Online: Promotional Products are the best source of Marketing Support for Franchises

JEM Promotional Products have added yet another article to their Resources library. The topic of this article is how Promotional Products are the best source of Marketing Support for Franchises. Below is an excerpt from the article, to read the full article please go to our articles page.

There are many challenges faced when part of a Franchise. Each franchise location is owned by a different individual with set ideas on how things should be done, in particular with Marketing & Advertising. Due to the nature of franchises there are guidelines set by the Franchisor restricts individual franchisees from advertising so as to protect the brand, therefore the process of Marketing Support can become quite complicated.


If the Franchise has locations all over Australia each area will have a different set of demographics and so it is difficult to find a form of Marketing Support that will benefit each Franchisee equally. Take newspaper advertising for example, if the Franchisor puts an advertisement in the Sydney Morning Herald how will it help franchisees located in Western Australia? Even if the franchisor made a further attempt to be fair by advertising in each local newspaper for the region the franchise is located in each newspaper has different circulation and readership levels so some areas will still benefit more than others.


Branded Promotional Products are the only form of Marketing Support that supports everyone equally. Many Franchises run in-store promotions where...

Follow this link to read the full article on our website.

If you own a franchise chain you may also be interested in reading about our Online Merchandise Management Systems for Franchises.

Franchises are in a unique situation when it comes to creating a merchandise program; most individual stores have a different owner each with their own opinion on how the business should be run. One of the biggest challenges with franchises is ensuring that franchise owners adhere to the guidelines set by Head Office so that there is consistency across all the stores. If you take a fast food chain for example the menu is always consistent because customers expect to find the same range available at all the stores. The same should be applied to your merchandise range.