To begin with, franchising is a retail business model that involves two parties – the franchiser and franchisee. The franchiser permits the franchisee to use its brand name and business model, based on certain terms, conditions and clauses involving revenue that are agreed upon. Franchising is a very popular business model especially in regions where foreign brands use franchisees to expand their presence in the market.
Since this business model involves 2 parties, complications and issues are bound to arise due to the involvement of separate entities collaborating over a business. Further, since the franchiser is the owner of the business and is allowing the usage of his brand and products, he would definitely want to have an overview and manage the franchisees. This could be tricky if not tackled the right way. Enter – franchise management software.
Let’s dive deeper into how can a franchise management software fit into the franchise model of a retail business.
A franchise management software can be perceived to be a platform that facilitates collaboration between franchisers and franchisees, as well as assists in increasing engagement between the two parties regarding various aspects of the business such as marketing, sales, branding, CRM, inventory management, reporting, operations, and so on. The software essentially establishes business rules and processes in mutual agreement between the two parties. Using these processes and business rules as a base, franchisers can look to grow their business further by hiring more franchisees. Moreover, the software with preset rules and processes allows the franchiser to monitor performance based on real-time analytics, and streamlining operations as well as exercise control over the franchisees, and also capture and store market data and trends for further analysis and bench-marking. The franchisees on the other hand can use the software to automate their business operations and also keep track of their business performance and provide necessary reports to the franchiser. Also, the franchise management software can help to connect multiple franchise sites through integrated communications.
Here are some aspects where a franchise management software can benefit your retail business:
A good franchise management software generally enables access to inventory data to help you in forecasting the inventory levels. Purchase orders can then be placed to replenish stock. The software could help the business keep track of the supply chain process from order placement to stock replenishment, allowing to foresee and mitigate risks/issues that can arise in the process.
Customer loyalty and retention is extremely important for every retail business and it is dependent on the quality of customer service in your franchisee outlets. A solid franchise management software aids customer relationship management by providing capabilities such as customer registration, loyalty programs, customer information look-up, inventory look-up, customer feedback, and so on that enable you to attract and retain customers in the long run.
A good franchise management software helps in the inspection of your franchise outlets following certain industry audit standards and checklists. By having capabilities of storing historical information of your outlets, you can use the information as a benchmark for performance tracking and inspection. Moreover, tracking sales data, employee data and performance, inventory data, and other important information, you can map out any discrepancies as well as keep a tight control on the processes and operations.