Franchise & Digital, the new winning duo

Franchising & Digital: The New Winning Combination

The number of franchise networks in France has grown by nearly 40% over the past 10 years. Distribution networks, whether generalist or specialized, are moving away from the traditional integrated network model. Less capital tied up, store managers acting as true quality ambassadors close to customers, faster expansion...

The many advantages of this model are attracting more and more sectors beyond the traditional ones, such as apparel and home goods, which have relied on it heavily since the 1970s.

The pandemic has also accelerated this shift: with less cash available, the franchise model makes it possible to keep expanding the distribution network.

Every B2C distributor becomes a B2B distributor.

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But doing business in a franchise model also comes with challenges:

Attracting the Best Franchise Talent

As the number of networks grows, franchise candidates now have a wide range of choices. You need to communicate on the right channels and choose a communication approach that fits the types of candidates you want to attract.

Supporting Franchisees and Meeting New Customer Needs

According to a Kantar study(2), support and the resources provided are the top criteria when choosing a franchise for 45% of respondents.

Networks therefore need to offer a range of high-performing services and tools that keep evolving with consumer needs: implementation studies, training and support, access to innovative management and digital tools...

Meeting Franchisee Needs

A franchise network is made up of dozens, sometimes hundreds, of people with different needs. It must therefore be able to manage that complexity.

Protecting the Brand’s Principles and Image

Because franchisees are not employees, the company’s control over store management, merchandising execution, and commercial terms is limited.

What if digitalization could address all of these needs at once — and more?

With digital, franchise networks can:

• Make the network more attractive to franchisees
• Turn the franchise model into a sustainable long-term solution by giving the franchisor control over data, communications, and management
• Scale the network quickly
• Offer a modular solution that meets all current and future franchisee needs

A digital, SaaS-based platform that connects to any external system, like DJUST, makes it possible to build a scalable, future-ready system quickly, with multiple benefits:

1. Better order tracking and order capture:
   • Increase franchisee productivity — and therefore profitability for both sides — by reducing order-taking time
   • Improve franchisor gains by increasing visibility into orders and simplifying order management
   • Increase the share of supply by offering a better franchisee user experience
2. Optimized purchasing and product assortment through multi-supplier capabilities:
   • Centralize direct and indirect purchasing by connecting all network suppliers to the digital platform
   • Offer additional products (e.g. product corners) by integrating service providers into the platform.
3. A more refined, personalized franchisor journey:
   • Offer a single platform that centralizes all management interactions (orders, assortments, deliveries, marketing information...)
   • Adapt the end-customer experience by tailoring the assortment and pricing for each franchisee
   • Offer different services to each franchisee based on their needs on the same platform, which can eventually become a service hub (eCommerce site, merchandising visuals, marketing services...)
4. Easier network expansion
   • Onboard a new franchisee instantly on the portal thanks to the SaaS model (scalable and non-monolithic)
   • Track all franchisees on a single platform
   • Easily connect systems (ERP, CRM, PIM) now or in the future using the API model

Ready to get started? Want to talk through your project? Feel free to contact us at www.djust.io

Sources:

1. Key Figures 2020 – French Franchise Federation
2. 17th Annual Franchise Survey, 2020 – Kantar & Banque Populaire