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The franchise industry's shift from the paper to the electronic age has been slow and steady, with the lion's share of today's franchise organizations now operating their systems much like the rest of modern civilization: in real-time.
By now, most successful franchisors have realized the necessity of having technology that allows them to post information for franchisees in real-time, hold chat forums, and make advertising/marketing materials available 24/7 to every franchise owner in the system. They've invested wisely in intranets and other tools to save money on phone, shipping, and printing costs.
At long last, intranet systems have become the way of life in franchising. (For those who have been living in the stone age, an intranet is a private, password-protected website that the franchisor makes available to franchisees day and night. It puts valuable information at a franchisee's fingertips when they need it, using a simple process, without having to wade through extensive manuals or attend remarkably long training classes.)
As an applications service provider specializing in the development of fully integrated web-based management solutions for franchise organizations, I consistently poll my clients to find out what they see as the key benefits of having intranet and extranet systems to help them manage their communications and support operations. (An extranet allows access to parts of a company's intranet system by selected users outside the company, such as suppliers.)
Here's what they had to say about the benefits of the various features of their web-based management solutions, including modules to manage sales and royalty reporting, financial data analysis, franchise lead management, online ad creation systems, and website development/hosting services for franchise owners.
Franchisors can apply their web-based management system technology in a variety of ways. Some of the most popular include the following:
Franchisors using a group discussion format on their intranet report significantly reduced time for developing ideas and campaigns. Instead of the franchisor faxing or telephoning individual franchisees to request their input, everyone is free to post ideas and comments live, in any number of online forums on their system's intranet. Franchisees find intranets an invaluable tool to talk amongst themselves to share ideas, thoughts, questions, and solutions for everyday operating situations.
Franchise companies that have implemented online support systems have done so to enhance communications and support for their franchisees. The technology is easy to use, and it helps franchisees run their businesses better. In the end, all parties benefit from this technology, which is simple, straightforward, and cost-effective.
Beyond the time savings, enhanced communication, improved support, and more efficient operations, intranets also can have a "fun" side, which further strengthens their benefits system-wide. Here are a few ways franchisors are using their intranets to provide more than the basics to franchisees.
Individual franchisee recognition. Many franchisors have started spotlighting successful or creative franchisees as "Franchisees of the Month." These franchisees appear right on the intranet home page, for all to see immediately upon logging in. These recognitions not only highlight the achievements of certain franchise owners, but also allow other franchisees to learn what their successful peers are doing. Feeding on the human desire for fame and recognition, the process triggers a competitive drive within the system to be the next franchisee featured on the home page. The selected franchisees also gain pride and confidence in the business they are running as an integral part of their franchise community. They also may be invited to contribute to the daily tips and quotes, or to offer insights and humorous daily anecdotes to fellow franchise owners. As the owners begin to know one another better through their use of this technology, a tighter franchise community is built.
Daily comics and quotes. Featured on the main page, these can be updated daily and often refer to the specific field a franchise serves. A quote can be related to the comic of the day, but also can relate to the business sector the franchise is focused on. Together, the comics and quotes will draw users in and provide them with useful daily advice and inspiration for their day-to day business activities. Franchisors will quickly find that franchisees will log onto a system more often, simply to check out the daily comic and quote. This increased comfort with using the site will translate to more overall use of the system tools.
Daily tips. Franchisees will be more willing to log on and use the tools provided by an intranet and extranet system if they feel they are getting valuable information. Daily or weekly tips on business, marketing, public relations, or advertising can help franchisees become more informed about their own business, and how to boost their bottom line with free, expert "outside world" advice.
Fun contests. Contests are an effective way to draw franchisees in and also to have fun with the technology. Companies can run contests ranging from the "Most Log-Ons a Month" to "Name the Yearly Convention" and "Name the Intranet/Extranet." What makes these contests both funny and fun is that many franchisees will post hilarious submissions, so franchise owners will log in more frequently just to get a good laugh-proving that humor is a great motivator to keep franchisees consistently coming back to the site. Prizes can be used for additional motivation. For example, the franchisee who logs on the most can win a $200 gift certificate. To make the chance of winning just for entering more enticing, all submissions to a contest can be put into a drawing, with the winner receiving dinner or drinks at the upcoming convention.
Weather reports. A highly popular and often used tool is a current weather update, customized for each franchisee's city. This easily accessible resource will draw franchisees to sign in. Once they check the weather, they are more prone to access additional information on the system.
Headlines. Give franchisees the information they crave. Soon, instead of heading to newspaper and TV websites, they will simply log into their personalized intranet site to find out the news of the day. The automatic news feeds can be customized to personal preferences, such as local or national news, sports, entertainment, or specific industry information.
Moderated "mentor" forums. For franchisees, peer advice is often heard the loudest. Franchisees seeking solutions to problems or looking for other kinds of advice are more likely to trust a fellow franchisee than a corporate executive who is not in the field running a franchise like they are. A successful franchisee can be asked to serve as a moderator in an online discussion, leading and addressing topics important to the franchise community. The nominated moderators will gain the confidence and pleasure of being asked to lead and participate in the discussions, while other franchisees will gain yet another source with distinct insight into their business. Often, topics will stray from all business to humorous events and anecdotes they have acquired in their franchise experiences.
Dan Martin is president and CEO of San Diego-based IFX Online, an application service provider specializing in online management systems for franchise organizations. Since debuting its first system in 1996, IFX has produced and hosted solutions for more than 160 franchise organizations worldwide. Martin has 22 years of franchise structuring and management experience, including hands-on experience as an area developer.