The Franchise Dilemma in Small Business Saturday by American Express

Many individuals that know me often question my passion to address the limited involvement of franchising in Small Business Saturday by American Express. This stems from a persistent misunderstanding: the assumption that all franchises are large-scale businesses.

The common example is McDonald’s, perceived as a franchise with substantial marketing support from its parent company. This belief, as once explained to me by American Express executives, is that this backing gives McDonald’s franchisees an unfair edge over independent businesses. However, this is a misconception.

Despite this, franchising has very slowly gained recognition in American Express’s Small Business Saturday initiative, though restrictions based on the number of locations still exist. This is problematic as the size of a franchise should not define its status as a small business. The focus should be on the individual ownership and investment at each location.

A key point often overlooked is that many franchise owners in the United States share similar challenges with small, independent businesses. Yet, they remain largely excluded from Small Business Saturday events.

Small Business Saturday rules regarding franchises state:

Must not be part of a franchise brand that has more than 250 stores; Additionally, if a franchise brand has more than 25 corporate-owned stores, then the entire brand is excluded…

Toward the end of this article, I’ve included links detailing my initial efforts to have American Express acknowledge franchising as part of small business. My current concern extends beyond franchising to how other business models are perceived, like home-based and virtual businesses, which are also small businesses often owned by individuals or families.

So, what about other small business models such as real estate, insurance, financial planning, and coaching that offers services across many disciplines? Are they not small, local businesses?

That all said, I do appreciate recent attention to restaurants under #DineSmall, but more is needed. Besides large chains, most restaurants are small businesses, often family-owned or franchise-operated.

The Small Business Saturday by American Express campaign, launched in 2010, aimed to support thriving communities by promoting small businesses. The U.S. Senate even endorsed it in 2011, and participation has grown nationwide. However, is this support inclusive of all small businesses?

Investopedia defines Small Business Saturday as an event promoting local, small business shopping. But I question the effectiveness of this promotion, especially for online small businesses, as it seems to lack genuine commitment.

Furthermore, the criteria established by American Express for businesses to be featured in the Shop Small map raises questions about its true motives: is it more about boosting AMEX card sales or genuinely supporting small businesses?

Despite my criticisms, I am a staunch supporter of Small Business Saturday and have always encouraged my franchise clients to participate. However, it’s disheartening to see franchises and other small business types excluded or limited in this initiative.

My goal is an inclusive Small Business Saturday that benefits ALL small business owners, not just a select few.

The links provided below offer more insight into my earlier efforts to include franchising in this important initiative. It may be 13 years since the inaugural Small Business Saturday event, but I firmly believe American Express remains blind to franchising as an integral part of small business, and an important component in local business communities across the country.

11/21/11 Franchising Excluded from AMEX Small Business Saturday Events!

11/25/11 Was Franchising Slapped in the Face by American Express by Accident?

11/26/11 Franchises Excluded from Small Business Saturday – AMEX Responds!

11/29/11 AMEX Reassessing Policies for Small Business Saturday

11/24/12 Franchising Not [Completely] Respected by American Express!

11/30/13 Franchising Supports Small Business Saturday

In any event, please support and promote both franchise AND independent businesses during Small Business Saturday, as well as during the days leading up to and following the event on November 25th. Encourage your network to actively participate by shopping at these businesses. Additionally, when making purchases at franchises, remind them to use #ShopSmall and #ShopFranchise on social media to inform American Express that franchises also constitute small businesses. And please don’t forget to #DineSmall and #DineLocal, too!

Let’s unite in this effort to bolster our local communities and the businesses that are integral to them. It’s a collective responsibility to nurture and strengthen the economic fabric of our neighborhoods.

Make it a great day. Make it happen. Make it count!


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