Marketing Plan

✅ Short Definition

A Marketing Plan is the strategic framework provided by a franchisor that outlines how the brand will be promoted and supported in the marketplace. It typically includes advertising methods, target audiences, and promotional guidelines. In franchising, it is a critical component of the Franchise Agreement, ensuring consistent brand messaging across locations.

🧾 Long Definition

A Marketing Plan in the context of a franchise is a detailed strategy developed by the franchisor to guide how the franchise brand is marketed and advertised. It usually covers national, regional, and local advertising initiatives, along with digital strategies, seasonal promotions, and brand standards. The Marketing Plan is often included in the Franchise Agreement, and franchisees are usually required to contribute financially to its execution through a marketing or advertising fund. While the franchisor retains control of the overall plan, franchisees may be allowed to implement localized campaigns, provided they comply with brand guidelines and receive prior approval. The goal is to ensure brand consistency, market presence, and shared success among all franchisees.

Additional Definition: Generally, a 'marketing plan' is a written document that details the necessary actions to achieve one or more marketing objectives. In regard to franchising, the marketing plan is a term that is often used as a short-hand way of describing the second element of the term “franchise” under the FTC Franchise Rule.  Please also see Franchise

Learn more about franchising in The Educated Franchise - 3rd Edition

🕰️ History and Usage

The concept of a Marketing Plan within franchising has evolved significantly since the 1950s, when fast-food giants like McDonald's pioneered standardized brand marketing across franchise locations. Over time, as franchising models matured and expanded globally, marketing plans became more sophisticated—incorporating national advertising campaigns, social media, influencer partnerships, and even local digital geotargeting. Today, the marketing plan is a binding element of most Franchise Agreements, used to align franchisee operations with the brand’s growth strategy. It's both a support tool and a control mechanism, ensuring that every franchise outlet reinforces the parent brand’s identity.

❓ Five Questions Often Asked About Marketing Plan

• 1. Is the marketing plan legally binding in a Franchise Agreement?
  Yes, most Franchise Agreements include provisions making the marketing plan mandatory for franchisees to follow.
• 2. Do franchisees have to pay for marketing activities?
  Yes, franchisees usually contribute to a national or regional advertising fund as stipulated in the Franchise Agreement.
• 3. Can franchisees create their own marketing campaigns?
  They can, but typically only with prior written approval from the franchisor to ensure brand consistency.
• 4. Who controls the content and execution of the marketing plan?
  The franchisor controls the marketing plan and ensures all promotional activities align with brand standards.
• 5. What happens if a franchisee doesn’t follow the marketing plan?
  Non-compliance may be treated as a breach of contract, potentially leading to legal action or termination of the franchise.

📝 Examples of Common Usage for Marketing Plan

• 'The Franchise Agreement requires each franchisee to participate in the national Marketing Plan by contributing 2% of gross sales.'
• 'Failure to comply with the Marketing Plan may result in a notice of default under the Franchise Agreement.'
• 'The franchisor retains exclusive control over the Marketing Plan to ensure uniform brand representation across all territories.'

📌 Summary

The Marketing Plan is a foundational part of the franchise relationship, detailing how the brand is promoted and ensuring consistency across all franchise units. Its inclusion in the Franchise Agreement makes it both a strategic tool and a legal obligation for franchisees to follow.