Marketplaces are increasingly appealing to franchise networks. These platforms offer new, highly attractive sales channels with numerous benefits for franchisors.

The success of a franchise network depends not only on mastering the brand’s expertise but also on effectively developing and managing the network.

These are among the key areas where digital transformation has disrupted traditional franchise models.

Core principles of a franchise network

Franchising is a formal, demanding, and high-performing network organization model, especially compared to cooperation, concessions, or buying groups.

Demanding, because the franchise system combines three key elements: the brand, the know-how, and technical and commercial support.

High-performing, because franchising is based on duplicating a proven and successful business model.

Digitizing the franchise candidate acquisition journey

Like any brand, a franchise must be visible and build brand awareness to grow. The rise of digital marketing plays a crucial role in the development of franchise networks:

  • Being visible on leading franchise websites through digital and editorial communication;
  • Publishing news and press releases on social media;
  • Prospecting through newsletters using qualified databases of candidates seeking to start a business in organized commerce;
  • Planning and forecasting network development: the number of information requests, qualified applications, and conversions can now be measured.

Monitored daily and assessed financially through digital tools, this phase allows for a proactive approach to network building.

Capturing and organizing data

Digital tools enable exponential growth in the amount of storable information (e-commerce data, SEO/SEA interactions, physical and online sales data), along with an increasing need to process and analyze it.

For example, certain network animation tasks can be modeled and linked to performance thresholds, allowing for partially automated solutions. Thanks to digital tools, the franchisor can gather all the data from the network: sales, purchases, stock volumes, losses, etc. Ces informations stratégiques correctement corrélées, agrégées et analysées donnent au franchiseur de nouvelles opportunités. Il est ainsi en capacité de personnaliser l’accompagnement de son franchisé et d’en optimiser ses performances.

When strategically correlated, aggregated, and analyzed, this information gives the franchisor new opportunities. They can tailor franchisee support and optimize overall performance.

Diversifying franchisor services

With the unlimited possibilities of digital tools, franchisors can offer their franchisees a variety of services to better support them in optimizing their performance. For example, they can provide access to an e-commerce website for their catchment area, enable them to generate leads online through a personalized SEA strategy, provide them with business tools such as inventory management and procurement through a shared purchasing center, etc.

The franchisor must provide value-added services within its network. Their digitalization allows them to continuously evolve over the long term.

Supporting change

The digital transformation of networks is driving a profound shift in the relationship to work, hierarchy, and organization. Starting today, franchisors can embrace contemporary models such as agility, the end of silos, the organic business, and the liberated business to differentiate themselves and lead their franchisee network to success.

 Michel Faillie, director of the Seenaps offering.