Everything in life needs a system, and so does the franchising business. Every person in a franchising business adds strength and completes the puzzle of making it a successful franchisee. Starting something is easy, but sustaining it consistently and responsibly requires an intricate and water-tight set of systems and procedures. Hence, systems & technology work as the oil that runs the franchising machine.
Now, let's dig deeper into the components of a franchising system.
1. Daily Data Entries and Tracking
In a QSR franchise, every franchisee enters each sale along with opening and closing stocks into the central system, i.e. the point of sales (POS). Every detail of the sale including the ones that go to waste or get cancelled is fed into the system.
This ensures that all transactions are justified, and secures all the data so that no one can tamper with the information.
2. Transparency and Automation at Every Level
A franchising business uses a tool to monitor staff that prevents any kind of unrecorded sales or undisclosed dealings. All calculations in that system are automated and simple. It also includes the percentage of GST charged on everything earned/spent, and the taxable income. It creates an environment of transparency and makes things easy for a franchisee.
The set system in the franchising business makes the designated person in charge accountable for their job. From stocks and sales to pilferage and wastage, everything is monitored in the system. This helps the franchisee to get accurate information about the store, anywhere in the world by simply logging into the central system from a smartphone. The parent company also gets a daily update on the performance of each outlet.
4. Daily Inventory Information and Trends
Through the system, the franchisee gets daily updates on stocks that are running out and the ones that are sufficient. This data is mirrored in the franchisor's system. The franchisor then allots stocks accordingly without wasting any additional material. A waste report is made to declare why certain products were wasted.
By comparing monthly reports, and understanding the store-wise consumptions, the business garners invaluable customer insights and trends.
5. Data security and upgrades
A dedicated technical team is an integral part of the franchising business. It takes care of the security of the systems and processes. The team keeps tweaking the system as and when new updates are available in the software, and prevents hacking and unscrupulous transactions. This also acquires better-licensed software programmes for the business so that processes can be accelerated to offer more real-time insights.
6. Loyalty Programmes
For a franchising business, customer loyalty means a lot. To keep customers engaged, the franchisor indulges in loyalty programmes that keep exciting offers and benefits for their most loyal customers. This results in benefitting the franchisee.
Based on this, the business gets a database that can discern what is working versus what is not. This database also allows connecting directly to the customer while launching something new and delighting them with exciting offers and discounts.
7. Accounts, Audit, Taxes and GST
The in-built software programmes for accounting in a franchise business enable the individual franchisee to manage accounts at no additional expense. Everything is pre-calculated, and reports for everything are automated. The system can calculate gross and net income while showing monthly graphs.
This makes the process of audit, taxation and profitability report effortless and quick.
In conclusion, when operations in a particular city function as a well-oiled machine, the franchisor can think of expanding to other cities thereby making more and more customers.
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