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Has anyone heard of Monthly Coupons Franchise?

I came across this company and since it doesn't require such a high initial investment, I was wondering, if anyone can share his/her experience with me.

Christine Lutz

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Jun 1, 2017
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May 31, 2017
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Hi Christine, I was wondering what you did with this. Would appreciate any info. Thanks. Ira Silverman

Jun 30, 2010
Christine Lutz
Looking to buy small business
San Diego County, CA

Thank you so much, Don, for the food for thought. Those are some pretty fantastic ideas. I'll take them and put them to use. Have a wonderful day. I think it's great how you're taking the time to share your wisdom. Thumbs up.

Nov 3, 2009
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The BAF Group LLC

The biggest thing to look for is the support: Support in materials you will need to sell your products; support in training you in your craft; support in training, subsequent to your startup, so that you know you can grow as the business theoretically expands. I have been involved in franchise operations that were frankly pretty poor, in that latter area. Any and all new ideas and direction came from the franchisees, not the parent organization.

So, you want to know the business is innovative. Try to talk to as many franshisees that have been there for the longest, as you possibly can; don't just talk to one or two that are recommended by the franchisor. See how the multitude of current people in the operation feel.

Look at news articles. See how the Company is viewed by the public. Look for blogs that complain about the Company. EVERY company is going to get complaints, but the seriousness about the complaints, how they are handled and whether they are repeated over and over again tells you whether the company is listening to the public, or even cares about the negativity. Blogs are great for that.

I actually may have talked to someone from that Company before - or one like it. But it was on a social basis, not a professional one. The one thing I could not tell is whether they send coupons to the phone unsolicited, or whether the phone owner subscribes to the service. Whether or not it is by subscription is key to how it is sold. Are you getting stores and such to sign up for delivering coupons, or are you getting subscriptions? How does the delivery of such coupons affect peoples' phone bills? If they increase the phone charges, then the value of the coupon is diminished, and down the road people will opt out. If it is non-subscription and unsolicited, it will not be long before laws are written to keep that from being allowed. You need to really check that carefullly.

Finally, one of the biggest problems with other, printed coupon scenarios is that you normally have a well defined area that is protected. That is important. But I have heard terrible scenarios where major, perhaps national chains are signed by the parent company, and you get nothing out of it. There are two scenarios where local people actually got a national store interested, but the franchisor took over and the local franshisee still got nothing! If you are protected in all of this, TRUST NO ONE!!!! GET THAT PROTECTION IN WRITING AND HAVE AN ATTORNEY WORK WITH YOU!!!!

I admit to knowing nothing about the technology, so there are a lot of questions I might have. Along with this last topic, if they get enough national chains as clients, and you are not paid on those, is there a chance that your own clients might even get less opportunity to be protrayed on the service? Can corporate accounts smother local accounts? Will a national chain be able to eliminate local competition the way grocery stores with floral shops can tell a landlord not to let any florists into that shopping center? Can this kind of thing limit your income?

My apologies for not knowing more. But I hope some of these questions give you ideas, as you learn more from them.

Nov 3, 2009
Christine Lutz
Looking to buy small business
San Diego County, CA

Thanks again, Don, for your great advice. This particular company has been in business since 2001 and it franchised their business system in 2007, so there are not many reviews or opinions I can find on them. They're doing mobile marketing, through their partnership with cellfire, which means the coupons are being sent to consumers' cell phones and they, in turn, can pull them up in the grocery store. What else would I be looking for when I examine franchises? Generally, I'm leaning towards individual businesses, but I do like the system in place and the support a franchise offers.

Nov 3, 2009
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The BAF Group LLC

One of the big issues in selecting a business is the cost of entry. Getting in low is great! But remember that competitors will find it easy to replicate, as well. That could spell difficulty for you, down the road. This does not mean you drop the idea. But ask yourself whether there is room for additional competition and what that might do to your business, if that should occur.

I am not familiar with Monthly Coupons. I am familiar with two other coupon operations, both dependent upon direct mail, and both are struggling. They were struggling before, but with the rise in mail costs, the profit margins hurt and thus, so did pricing, sales...etc. It is a domino effect. Sales volume eroded.

But the bigger impact was apparently from Internet coupons. Newspapers have also suffered in this area because many companies are refraining from printing coupons, and are issuing them through their Web Sites, instead. As a consumer, you go to the grocery store Web Site, (as an example,) and look through the specials for the week. The store issues coupons on the Site, which you can then print out yourself. This is one of the many reasons newspapers are struggling: Grocery stores in particular are getting away from newspaper advertising and going direct.

Could this happen to you in with your Monthly Coupon franchise? I AM NOT SAYING IT WILL; however, I would be very careful to study this, if that Company depends on printed coupons. On the other hand, if it is Internet based, could that be the wave of the future?

Nov 3, 2009

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