{{title}}
{{byline}}
{{byline}}
Most technology is built for a single company to succeed. But franchises are built for many companies to succeed at once, and their software must embrace the franchise model.
In software development, two primary software models exist: single-tenant and multi-tenant. Single-tenant software is custom-built for one company’s unique needs. For example, I once built an end-to-end genomics ordering platform exclusively for one particular pharmaceutical. Multi-tenant software hosts multiple companies with separate logins, data, and experiences.
Franchises add a twist: multi-tenant within tenants. The franchise model creates a parent-child structure. Franchise software serves the whole system while respecting the boundaries between each part. That means central controls for the franchisor, local tools for the franchisees, and nuanced setups for multi-unit owners. This architecture has implications far beyond code; it reshapes how software is bought, built, and used.
Franchises have different views. From franchisor to owners to store staff, each link depends on the others but not equally. The franchisor sees the whole. The store manager sees the part. The owner stands in between, needing both detail and distance. Good platforms respect that. They shape access, filter views, and flex as the chain shifts.
Locations open. Locations close. Ownership changes. This is normal in franchising. Software must make it painless. Templates are needed for fast onboarding and, if the store closes, clean offboarding. When owners change, store data and permissions should travel, not disappear. Franchise software isn’t just tech; it’s infrastructure for change.
Everyone looks at the same data, but no one needs to see it the same way. Franchisors track brand-wide KPIs. Owners scan across units. GMs focus on team schedules and tasks. A good platform personalizes these views and protects them. Letting one “child” see another’s financials opens legal and political issues. The best systems visualize by region, store age, or tier, creating benchmarks without naming names. It’s not just a feature. It’s how you drive performance.
Be aware of bad data, which breaks trust, decisions, and brands. If one store logs “referral” and another logs “ref,” you’ve lost clarity. Systems must enforce naming rules, validate fields, and structure inputs across every tool, from the CRM to the POS. You don’t fix dirty data later. You prevent it at the door.
Marketing, billing, and support are shared functions, but who pays? Franchise systems must track spend, route requests, and split costs. If national ad spend hits local revenue, attribution matters. If a support ticket needs a vendor, routing logic matters. If the invoice drops, clarity matters most of all. Don’t force franchisees to fight over spreadsheets. Build tech that handles it cleanly.
Even the best software is worthless if no one uses it. Adoption isn’t about features. It’s about fit. Offer in-app walkthroughs. Phase rollouts. Let early adopters lead. Pilots prove value and provide time to test before pushing full-scale. Don’t just deploy: introduce, teach, and adapt.
In food, health, and childcare, compliance isn’t optional; it’s survival. Track safety checks. Log required training. Flag risks early. Provide real-time audit tools and proof for regulators. Compliance can’t be bolted on. It must be baked in.
Because of these parent-child considerations, buying and building software undergoes a different process than the rest of the business world:
The view is different on the franchisee side:
Franchise tech isn’t about building for a brand or a store. It’s about building for both at the same time! When it works, everyone feels it. When it doesn’t, everyone knows. To win in franchising, build to flex, build to scale, and build to last.
Dennis Leskowski is an experienced franchise CTO with expertise in software development, data, and AI.