Buildings account for about 33% of energy consumption and 40% of emissions worldwide, according to the International Energy Agency . This also applies to franchised locations, where energy bills are combined with many other expenses. However, franchisees can reduce their costs with energy efficiency, leaving more cash flow for expenses such as royalties and rent.
Franchises have strict requirements when opening a new location, which are usually described in operating manuals. Some franchises also provide sample construction drawings to be used for reference. These factors limit project flexibility compared to starting a new business from scratch. However, there are many ways to save energy and European engineers can select measures that are compatible with franchise requirements.
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In this article we will discuss some effective energy efficiency measures for the franchise sector. Each franchise has its requirements, but there are basic design principles that can be applied in most cases. For example, lighting and HVAC are among the top energy expenses in commercial buildings . Energy consultants often recommend LED lighting for this reason, as well as HVAC units with high-efficiency ratings and smart controls.
Using LED Lighting in a Franchise
Franchises have detailed requirements for new locations, which often include lighting color and layout. LEDs are characterized by their versatility and are a viable option for any commercial space:
- Thanks to their small size, LEDs can make lamps of any shape.
- LEDs can also be designed to produce any color of lighting, meeting the needs of different businesses.
For example, restaurants often use warm tones of light to create a relaxing environment. On the other hand, gyms typically use cooler tones, which have an energizing effect. In lighting design , this is described by correlated color temperature or CCT: a lamp with a CCT of 2700K produces a warm yellow light, while a CCT of 6500K results in a bluish cast. Compared to older lighting technologies, LEDs can be designed to produce any CCT.
Note that CCT is not the actual temperature of a bulb. Just as distance is sometimes measured with units of time (“my apartment is 10 minutes from my office”), lighting designers use temperature to describe color.
The savings achieved in LED Lighting will depend on the types of bulbs being upgraded, but you can expect savings in the range of 30% to 90%. LED lighting typically achieves a payback period of less than 3 years in commercial applications, while being covered by a 5-year warranty if you purchase quality brands.
Efficient Heating and Cooling for Franchise Locations
Unless your franchise uses specialized energy-intensive equipment, HVAC will likely be your biggest energy expense. Having a comfortable internal temperature is very important in the franchise sector, especially in restaurants. Customers will want to stay longer and will likely spend more.
Air conditioners are necessary in summer and heaters are equally important during winter. However, the importance of ventilation is sometimes ignored:
- When a commercial space has adequate ventilation, airborne pollutants and germs are quickly removed from the indoor air.
- Ventilation systems can be equipped with features such as an energy recovery system or an economizer, which reduce overall HVAC costs .
Smart controls can reduce ventilation when franchise locations have low occupancy, which also saves on heating and cooling. However, this measure is not recommended by ASHRAE while the COVID-19 pandemic is active, as reduced ventilation gives more chance for viral particles to accumulate in the air.
Regardless of the HVAC equipment used in your franchise, you can save energy by purchasing high-efficiency units. Boilers and furnaces use Annual Fuel Utilization Efficiency (AFUE), while air source heat pumps use Heating Seasonal Performance Factor (HSPF). On the other hand, air conditioners use different energy efficiency ratings (EER) depending on their type. As the energy efficiency of HVAC units increases, their operating cost for a given indoor area decreases.
Energy Efficiency Measures for Specialized Franchise Equipment
Depending on the franchise sector, there may be specialized and energy-intensive equipment: dry cleaning and commercial kitchens are two examples. Design requirements vary depending on franchise specifications, but basic energy efficiency principles always apply:
- Select equipment that meets franchise requirements and does the job while consuming as little electricity and gas as possible.
- If the franchise uses any equipment with a motor, it must have a high efficiency rating such as NEMA Award or IE4.
- Wherever possible, smart controls should be implemented for energy-consuming equipment.
There are many costs when starting a franchise, which include initial fees and the business suitability project. When you open there are operating costs and royalties, and if you took out a loan there are also interest payments. Energy efficiency reduces a franchise's operating costs, increasing its profit margins and improving its chances of success.
