How HorsePower Brands Used MAF to Unlock Franchise Growth and Triple Corporate Marketing ROI

HorsePower Brands operates a portfolio of home-services franchises, balancing corporate growth goals with franchise-level economics.

The Challenge

The CMO was caught between legal covenants, franchise autonomy, and pressure to prove national marketing worked across franchises.

1. Fragmented data: Local marketing scattered across agencies; no aggregated visibility
2. Weak attribution: National CTV and local direct mail went untracked
3. Budget tensions: Corporate marketing competed with bottom-line priorities; franchisees questioned national fund value
4. Market diversity: Performance varied wildly from NYC to Lincoln, NE

The Approach

M-Squared deployed the Marketing Accounting Framework as the foundation for advanced measurement:

1. Aggregated fragmented local and national marketing data
2. Built separate composite P&Ls for large markets (34 territories) and small markets (43 territories)
3. Mapped marketing investments to franchise revenue, corporate royalties, and margin
4. Applied MMM, triangulation, and flywheel analysis on top of accounting-ready data

The Results

1. 88% of revenue was driven by media investments
2. Every $1 in media generated $3.70 in royalty revenue from corporate-funded campaigns
3. Analysis showed national marketing was still below diminishing returns, with strong upside from increased investment

HorsePower Brands gained a data-driven case to invest in national marketing for profitable growth. Franchisees now see corporate marketing as a growth driver, not a cost. The CMO can confidently advocate for increased corporate fund contributions backed by P&L proof.