Franchise Business Management Solutions and Systems:
" A franchisor is responsible for equipping the franchise management system with the tools needed to operate the business and contribute to the bottom line. "
To be successful in the Information Age, businesses and individuals must embrace the ever-increasing role that technology plays. Today information, communication and business applications are delivered through the Internet via the World Wide Web, application service providers, file-transfer protocol sites, e-mail, and other online services. In Franchisee Business, technology benefits in four areas: Communication, Store Operations, Supplier Relationships and Franchisee support.
Communication Applications :
Most say that effective communication is a two-way street; in a franchise system it becomes more complex--it is a four-way intersection. The franchisor must be able to communicate effectively to each franchisee directly (and vice-versa) and franchisees must reach the end consumer.
Traditionally, franchise systems have used telephones, faxes, and a network of field support representatives as the key communication channels. In recent years, private intranets have emerged; the results are lowered costs, faster dissemination, and increased information flow. These intranets provide a terrific way to exchange ideas through discussion forums and provide updates on industry news, program details, and other resources.
Franchisees also have the opportunity to express their opinions through online quick polls. Of course, e-mail plays a critical link between the franchisee and the franchisor, and the franchisee and the consumer. It is an inexpensive and immediate way to stay in contact by exchanging files and graphics, sending e-newsletters, and providing updates. The franchisor saves on postage, paper, and printing costs, which can be reallocated to revenue-generating programs.
Store Operation Applications :
As consumers become more comfortable researching products and shopping on the Internet, it becomes critical for a franchisee to have a professional-looking Web site that builds credibility and delivers information. The design is usually consistent throughout the franchise system; however, each location has the ability to customize pricing, product and service offerings, location maps, and contact information. Many Web sites have features that allow the consumer to make online purchases of set service appointment times.
Another application that franchisees are eager to utilize is an online advertisement creation kit. Franchisees can save time and money by creating fliers, signs, point-of-sale materials, coupons and other promotional items. Pre-defined components, such as artwork, product and service information, and price points, are selected, dropped into a template, and then printed.
Point-of-sale systems have been around for years and most franchisees understand the value that they provide to the operation through efficiencies in daily operations, asset management, consumer data acquisition, and targeted marketing. Over the next few years, many of these systems will be administered through an Internet ASP and will benefit the franchisee by reducing software and equipment costs. Information is available online, which allows the franchisee to see the data from anywhere, at anytime.
Products and services that are not feasible to execute in-house can be marketed to consumers online via a storefront that resembles the franchise operation. It appears that the franchise location is the supplier; however, a third-party online service provider is actually fulfilling the order. Items can either be shipped directly to the consumer or sent to the franchise location for pickup. Franchisees collect a percentage of the sale and meet consumer demand.
Some franchise locations have begun to experiment with online surveillance applications. Cameras stream video to the Internet, allowing the franchisee to access the store visually whenever necessary. Since employees are aware of the monitoring, productivity tends to increase when these systems are installed.
Supplier Relationship Applications :
On their intranet sites, franchisors have information or links to supplier Web sites that provide franchisees with product images, descriptions, and pricing. Online ordering is often available, which a[lows for convenient, round-the-clock access to the supplier. This application also eliminates the need to rely on printed catalogs of sales calls, which add time to the order cycle. Shopping carts that contain regularly-ordered items can be created, allowing this routine process to be simple and accurate.
Access to supplier representatives is critical. It is important that franchisees receive prompt responses to questions and concerns, so many franchisors have opened portions of their intranet discussion forums to key suppliers who monitor and respond to posted requests and comments.
Franchisee Support :
Routine sales information that must be submitted to the franchisor can be transferred using an online application. Once this is done, the franchisee can perform a comparative analysis for his of her store versus a benchmark, a region, or the entire system. These applications motivate franchisees and are quick and easy to use.
Online training is one of the most important applications available to a franchisee. Success can be directly related to the continued learning that takes place in the operation. Associates, managers, and franchisees receive continuous, self-paced instruction through many different formats, including streaming video. Franchisees benefit from accessing up-to date information.
Technology applications touch every part of a business. They should be recognized for the value that they add to communication, store operations, supplier relationships, and franchisee support. A franchise system that embraces the proper technology has a greater chance of having the tools needed to succeed and prosper in today's economy.