Franchisee business is a two-fold retail model in which one party (the franchisor) allows to use their brand name to the other party (franchisee) on specific terms and conditions and clauses regarding the agreed-upon revenue sharing between both parties. The franchisee uses the business model of the franchisor to widen its customer base. This franchising business is win-win for both the parties as franchisor gets a market expansion and the franchisee gets an established brand and business model to work with. Mostly foreign brands tend to use this model to enter the market space.
There are bound to be issues popping up when two parties collaborate over a business which is not subsidiaries but separate entities. The brand name is a thing that is hard to build, and the franchisor in this regard wants to look over the operating methods of the franchisees as it is allowing them to use their right name. This bird-watching of the franchisees by the franchisors create a tricky situation which needs to be tackled smartly and elegantly as the collaboration doesn’t go sour, and both parties go happy.
Franchisee consultants design management solutions for the franchisees and enterprises comprehensively and robustly from the ground up. These solutions aim to solve sales development, on-boarding, engagement, operations support and more. These solutions are custom made according to the need and way of operations of the enterprise. These solutions lead to a robust, fluid, automated set of analytic, workflows and brands can focus on their growth of franchise base by gaining the knowledge about franchises capabilities and thus can maximize unit performance.
Franchise management software(s) help the emerging brands in the centralization of power and management and ensures flexibility that would guarantee on-going success and rapid adoption. Thus, good franchise management software would help in effective customer relationship management by providing options for customer registration, loyalty programs. Customers can look up inventory and information; they can give easy feedback which would attract the customers and widen the base by retaining those customers in the coming times.
Thus, franchisors and franchisees both would equally benefit from the franchisee management software. The franchisees would be able to automate their operation process and can keep track of their activities of which they can send reports to the franchisors. Franchisors can integrate all their franchisees with the help of software at one place and can quickly look to further expand their units.
The software would help the franchisors to analyze the operations of the franchises with its inbuilt features and preset rules such as real-time analytics of the businesses, store market data and trends for future planning and marketing, exercise control over franchisees and give them directions backed by hard data. Overall, franchise management software would benefit both the entities in some regard and would help in streamlining the business processes by removing the hassles that crop up in the absence of the software system.
Aspects of the retail business that the franchise management software can affect and improve greatly are –
1. Inventory and supply chain management –
Any good franchisee management software would provide the option of inventory lookup and would access the data to keep the inventory level in check. Depending on the alarm given by the software, the stocks can be filled up again for the smoother supply chain management. The software would further help in assessing the management quality of the supply chain by tracking the order placement, managing the right stocks for the supply, and smoothen the process of delivery thereby mitigating any risks present whatsoever in the process of supplying products to the retailers.
2. Customer Management –
Any retail business thrives on the response and reactions of the customer. Thus, retention and attraction of new customers to the company is vital for the growth and making a brand name. Customer loyalty could be gained by providing them quality service and products through the franchisee outlets as well. The software system would help in keeping track of the quality of customer service and satisfaction that the franchisees provide. It would help the customers in registering with the company, and they can look up inventory, gain loyalty access and what not to retain these customers with the business.
3. Process Management –
Any franchise management software would help the franchisors assess the franchisees based on specific industry standards and procedures to look for the errors and positives in the franchise outlets. These pieces of information can be stored and later used to compare the business practices of the outlets as improving or declining. It would keep the franchisors establish a bench-mark in the retail business by the franchisees. The company would be able to have control through the various sales and employee and inventory data to look for discrepancies and correct them on the course of the operations and processes.