Built To Fit: Technology Must Adapt to the Franchise Model

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.

Core considerations

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.

Franchisor needs

Because of these parent-child considerations, buying and building software undergoes a different process than the rest of the business world:

• COOs want software that can lock down standard processes and dashboards while providing freedom for franchisees.
• CFOs want ROI, predictability, and fraud prevention like any other CFO, but they also want split billing or “cost per location” rather than “cost per seat” so that they don’t need to track every little expense.
• CMOs want brand control and A/B testing, but their main consideration is attribution. CMOs need tech that allows franchisees to customize local ad spend while showing credit for national efforts.
• CTOs want APIs, data access, security, and integration, but they need software that doesn’t overwhelm support teams and ideally integrates into the Identity and Access Management (IAM) process.
• Product teams want flexible feedback and room to iterate. Flexible dashboards are appreciated more than rigid reports.
• CDOs want tech that helps find quality prospective franchisees and provides clear performance reporting and location data.
• Construction leads want tech that works on day one. How easy is it to install and onboard new locations?
• CEOs want consistency, scalability, and vision that connects.

Franchisee needs

The view is different on the franchisee side:

• Franchisees want proof that the system works, cuts waste, and grows revenue. They believe in data, case studies, and peer validation, not pitch decks.
• GMs want speed and simplicity: few logins, fast actions, and mobile tools.
• End users want ease, clean interfaces, and no friction.

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.