Franchises (Scope 3 Category 14)
Category 14 of Scope 3 covers emissions from the operation of franchises not included in the franchisor’s Scope 1 or Scope 2 inventory.
What is Franchises (Scope 3 Category 14)?
Category 14 applies to franchisors — companies that license their brand and business model to independent franchisees. The emissions from franchisee operations (energy use, fleet, refrigerants) are reported as the franchisor’s Scope 3 Category 14 if not already included in the franchisor’s Scope 1 or 2 under the chosen consolidation approach.
This category is significant for franchise-heavy businesses such as fast food chains, hotel groups, and retail networks where the brand owner does not operationally control the individual franchise locations. The franchisor must collect or estimate energy and emissions data across what can be hundreds or thousands of independently operated sites.
Franchisees, from their perspective, report these emissions as their own Scope 1 and 2. Category 14 ensures the franchisor accounts for the emissions generated under its brand even when it does not directly control operations.
Practical Examples
A fast-food chain with 500 UK franchise locations collects energy data from franchisees and reports the combined gas and electricity emissions as Category 14.
A hotel franchisor estimates Category 14 using per-room energy benchmarks multiplied by the total room count across its franchise network.
A convenience store franchisor reports refrigerant leakage from franchisee stores as Category 14, alongside energy consumption for lighting and refrigeration.
How Climatise Helps
Climatise provides franchise data collection workflows, per-site benchmarking, and portfolio-level reporting to help franchisors calculate and manage Category 14 emissions across large franchise networks.
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