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Article: Gift cards: what franchisors should know: franchise systems should know all about their gift card programs.(fw focus: management and operations)
- Article from:
- Franchising World
- Article date:
- July 1, 2006
- Author:
CopyrightCOPYRIGHT 2006 International Franchise Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Gift cards appear to be an appealing way to promote your business, but franchisors should beware of some legal pitfalls. According to a recent survey of a third-party provide of gift cards, more than 60 percent of Americans, or approximately 140 million people bought or received gift cards in the last 12 months.
In addition to the upfront payment for the card, which puts cash in the card issuers' hand, the data indicate that more than half of all gift card holders spend more than the amount on the card given to them. Therefore, considering the fact that up to $40 billion to $45 billion may be spent annually on gift cards alone, it is not surprising that ...