Written by Guest Writer Keith Gerson, CFE – President & CEO of Gerson Advisory Services

When I first started franchising in the early ’70s, we didn’t even have fax machines, let alone the tech we’re using today. I remember lugging around a briefcase full of paper reports to every franchisee visit. Now, as President and CEO of Gerson Advisory Services and former President of Franchise Operations for FranConnect, I’m watching AI revolutionize the franchise industry. It’s been quite a journey, and I’ve got a few thoughts on where we’re headed next.

The CFXO: More Than Just Another Fancy Title

Let me tell you about a conversation I had last month with Scott, a franchisor client of mine. He was frustrated because his top-performing franchisee was threatening to leave the system. “Keith,” he said, “I don’t get it. Their numbers are great, but they’re unhappy. What am I missing?”

This is exactly why I’ve been pushing for the role of Chief Franchise Experience Officer (CFXO). It’s not just another C-suite title to hand out at the company holiday party. The CFXO is your franchisee happiness guru, your system’s empathy engine.

In Scott’s case, a CFXO would’ve spotted the issue long before it reached boiling point. They would’ve noticed that while this franchisee’s numbers were stellar, they hadn’t received meaningful support or recognition in months. Sometimes, it’s not about the numbers – it’s about feeling valued.

From Consultant to Coach: A New Breed of Support

If you’ve been around long enough, you’ll remember the old days when the Franchise Business Consultant’s job was basically to show up, check some boxes, and move on. Thankfully, those days are over.

I was at a franchise conference recently where I heard a franchisee say, “I don’t need big brother telling me to ‘increase sales.’ I need someone who can help me figure out how.” That’s stuck with me because it perfectly captures the shift we need to make.

We’re moving towards what I call Franchise Success Coaches (FSCs). These aren’t just consultants; they’re part business guru, part psychologist, and part cheerleader. They need to be able to dig into the numbers, but also to be able to read between the lines of what a franchisee is really saying.

I’ve seen this work wonders. A client of mine implemented this approach last year. Their customer satisfaction scores have gone up 22% since then. Why? Their FSCs aren’t just looking at sales figures; they’re coaching on everything from staff morale to local marketing strategies.

Tiered Support: Because One Size Fits None

Here’s a hard truth I’ve learned: a franchisee who’s been in business for 10 years needs very different support than someone who’s just opened their doors. Sounds obvious, right? You’d be surprised how many systems still use a one-size-fits-all approach.

I’m betting that many of you have a long-term franchisee who has been in the system for many years and who is consistently a top performer. But when you sat down with him, he was considering leaving. Why? He said, “I’m tired of sitting through the same basic training sessions year after year. I need something more.”

I’ve had those conversations over the years, and that’s when the idea of tiered support really crystallized for me. Now, I advocate for systems where new franchisees get intensive, hands-on support while veterans of your system get advanced strategies and peer networking opportunities. It’s not about less support for experienced franchisees – it’s about different support.

Real-Time Data: The Good, The Bad, and The Game-Changing

Let me take you back to 1991. I was working with a specialty food franchise system, and we had just installed our first real-time POS system. I remember standing in a franchise location, watching those sales figures roll in live for the first time. It was like magic.

Fast-forward to today and the data we have access to is mind-boggling. But here’s the kicker—data alone isn’t enough. I’ve seen franchisors drown their franchisees in numbers without providing any real insights.

The game-changer is using this data to have meaningful conversations. One of my clients was able to spot a trend in negative reviews about the speed of service and worked with franchisees to make immediate improvements. Result? A 15% jump in positive reviews in just three months.

Revolutionizing Franchise Operations with Playbooks.

Playbooks are essential in helping to create stronger, more resilient franchise systems by replicating best practices with unprecedented speed and precision. For franchisors looking to drive consistent performance, this tool is a game-changer. The key is that you’re not just collecting data – you’re using it to drive action. It’s not just about making corporate jobs easier; it’s about giving franchisees the tools and insights they need to succeed.

I didn’t really have to gaze long into my crystal ball, as what I initially thought were future capabilities exist today. FranConnect, I’ve found, has the best playbooks in the business when it comes to franchise operations. They have developed the ability to transform how we use real-time data to drive improvements across franchise systems.

Playbooks can turn data into immediate action. Imagine a restaurant franchise where, if a location’s cleanliness scores drop below a certain threshold, the system automatically assigns a detailed cleaning and maintenance playbook to that franchisee. It’s immediate, targeted support exactly when and where it’s needed.

Playbooks can be created for any performance indicator – customer satisfaction, upselling, you name it. It’s like having your best performers mentor every location, but automated and scalable.

AI and Machine Learning: The New Frontier

Now, I’ll admit that when I first heard about AI in franchising, I was skeptical. I had concerns over data privacy, content ownership, “hallucinations,” ethical concerns, a lack of human touch, etc. But I’ve come around in a big way.

Last year, I heard of a franchised B2B concept that implemented an AI system to generate performance improvement playbooks. The system analyzed data from across their 500 locations and created customized strategies for each location.

The results were impressive, but what really sold me was a conversation I had with their CEO. “For the first time,” he told me, “I feel like the advice we are giving is truly tailored to our franchisee’s locations, not just generic one-size-fits-all solutions.”

The Hybrid Model: Balancing High-Tech and High-Touch

The pandemic forced us all to go virtual, and let me tell you, it wasn’t pretty at first. A franchisor I spoke with at an IFA event told me about one video call where a franchisee accidentally left their mic on while making some colorful comments about corporate. Not their finest hour.

But we learned, we adapted, and now I’m convinced that a hybrid model is the way forward. There’s still no substitute for sitting across from your franchisee, looking them in the eye, and shaking their hand. But the efficiency of virtual check-ins? That’s here to stay.

One approach for consideration is bi-annual in-person visits, with bi-weekly virtual calls. An example could be to deliver in-person visits in January and July, followed by virtual calls every two weeks (26 calls per year), and an option for additional ad-hoc virtual calls as needed.

Another approach could consist of an annual in-person visit (reserved for annual strategic planning and critical hands-on support). These are offset by quarterly extended virtual sessions (2-3 hours) for in-depth reviews and bi-weekly brief virtual check-ins (15-30 minutes for quick updates). It’s recommended that one in-person visit be scheduled in the first quarter for new franchisees.

I’ve also seen systems that offer a flexible system based on each franchisee’s performance.

• High-performing franchisees: Annual in-person visit, with bi-weekly virtual calls.
• Average-performing franchisees: Semi-annual in-person visits offset with bi-weekly. virtual calls.
• Underperforming franchisees: Quarterly in-person visits with weekly calls.
• Additional ad-hoc virtual calls can be scheduled as needed for urgent matters or specific concerns.

Looking Ahead: The Only Constant is Change

As I look back on my five decades in franchising, one thing is clear—this industry never stops evolving. The challenges we face today are different from those we faced in the ’80s, ’90s, or even last year. However, the core of what we do remains the same: supporting franchisees in building successful businesses responsibly.

The future of franchise operations is about embracing technology without losing the human touch. It’s about using data to inform decisions but not letting numbers overshadow relationships. It’s about providing tailored support that evolves as our franchisees grow.

Is it going to be easy? Not at all. But in my experience, the most rewarding things rarely are. As we navigate this new frontier, let’s remember why we got into franchising in the first place – to help people achieve their dreams of business ownership.

Here’s to the future of franchising. It’s going to be one heck of a ride!

In today’s fast-paced business world, technology is not just an option; it’s a necessity. For franchisors and franchisees, leveraging the right technology can mean the difference between mere survival and thriving success. Let’s explore how technology can engage and empower franchisees, driving franchise success to new heights.

Understanding the Franchise Ecosystem

Roles of Franchisors and Franchisees

In a franchise system, the franchisor owns the overarching brand and business model. They provide the framework, operational guidelines, and support to franchisees, who are independent business owners operating under the franchisor’s brand. Cohesive collaboration between franchisors and franchisees is crucial for a franchise system to be successful.

The Importance of Collaboration

Effective collaboration ensures that both parties work towards common goals. Franchisors must maintain brand consistency and uphold standards, while franchisees must focus on delivering excellent customer experiences. When both parties communicate and collaborate effectively, the entire franchise network benefits.

The Power of Engagement

Engaged franchisees are more likely to feel invested in the brand’s success. They are motivated to follow best practices, implement innovative ideas, and strive for excellence. Engagement fosters community and shared purpose, increasing satisfaction and retention rates.

Technological Challenges Faced by Franchises

Communication Gaps

One of the most significant challenges in a franchise system is maintaining clear and consistent communication. With multiple locations, often spread across different regions, ensuring everyone is on the same page can be daunting. Miscommunications can lead to operational inefficiencies and inconsistencies in customer experience.

Data Management

Franchises generate vast amounts of data, from sales figures to customer feedback. However, managing and analyzing this data to derive actionable insights can be challenging. Without proper data management systems, valuable information can get lost, and opportunities for improvement may be missed.

Operational Inefficiencies

Operational inefficiencies can arise from outdated processes, lack of automation, and fragmented systems. These inefficiencies can lead to increased costs, reduced productivity, and lower profitability. Addressing these issues requires a strategic approach to technology adoption.

The Role of Technology in Empowering Franchisees

Leveraging AI and Machine Learning

Artificial intelligence (AI) and machine learning (ML) are transforming franchise operations. These technologies analyze large datasets to identify patterns, predict trends, and provide actionable insights. For example, AI-powered chatbots can enhance customer service by providing instant responses to common queries, freeing staff to focus on more complex tasks.

Streamlining Operations with Cloud Solutions

Cloud-based solutions offer flexibility and scalability, making them ideal for franchise systems. These platforms enable real-time data sharing, streamline communication, and facilitate remote training and support. By centralizing operations on a cloud platform, franchises can ensure consistency and efficiency across all locations.

Accelerating Growth with CRM Systems

Customer relationship management (CRM) systems are essential for managing new franchise leads and improving lead response time. These systems help franchises nurture the right candidates, close deals faster, and reduce cost per lead. A robust CRM system can enhance conversion rates and drive more revenue.

Case Studies Successful Technology Integration in Franchise Systems

FastSigns

FastSigns, a leading signage and graphics franchise, successfully integrated a comprehensive technology platform to streamline operations and improve communication. The platform provided real-time data access, centralized communication channels, and automated workflows. This integration led to increased efficiency, higher customer satisfaction, and improved franchisee engagement.

My Salon Suite

My Salon Suite, a salon suite rental franchise, leveraged AI-powered analytics to optimize its marketing strategies and improve customer targeting. By analyzing customer data, they identified trends and preferences, enabling them to tailor their marketing campaigns more effectively. This approach resulted in higher customer acquisition rates and increased revenue.

Camp Bow Wow

Camp Bow Wow, a doggy daycare and boarding franchise, implemented a cloud-based management system to enhance operational efficiency. The system streamlined booking processes, automated billing, and provided real-time updates on pet activities. This technology adoption improved customer experience, increased operational efficiency, and boosted franchisee satisfaction.

Best Practices for Franchise Technology Integration

Selecting the Right Technology

Choosing the right technology is crucial for successful integration. Franchisors should conduct thorough research, evaluate options, and select solutions that align with their business goals. Involving franchisees in the decision-making process can also ensure that the chosen technology meets their needs.

Implementing Technology Effectively

Effective implementation requires careful planning and execution. Franchisors should create a detailed implementation plan, provide comprehensive training, and offer ongoing support. Regular communication and feedback loops can help address challenges and ensure a smooth transition.

Supporting Technology Adoption

Supporting franchisees in adopting new technology is essential for maximizing its benefits. Franchisors should offer continuous training, provide resources and documentation, and create a support system to address any issues. Encouraging franchisees to share their experiences and best practices can foster a collaborative learning environment.

Future Trends in Franchise Technology

The Rise of IoT

The Internet of Things (IoT) is set to revolutionize the franchise industry. IoT devices can collect and transmit data in real time, providing valuable insights into customer behavior, inventory management, and equipment maintenance. Franchises can leverage IoT to enhance operational efficiency, reduce costs, and improve customer experience.

Advanced-Data Analytics

Advanced data analytics will play a significant role in driving franchise success. Predictive analytics can help franchises forecast demand, optimize inventory, and identify growth opportunities. By harnessing the power of data, franchises can make informed decisions and stay ahead of the competition.

Virtual Reality and Augmented Reality

Virtual reality (VR) and augmented reality (AR) technologies are gaining traction in the franchise industry. VR can be used for immersive training experiences, while AR can enhance customer engagement by providing interactive and personalized experiences. These technologies can potentially transform how franchises operate and interact with customers.

Conclusion

In conclusion, technology is a powerful tool for engaging and empowering franchisees. By addressing common challenges, leveraging innovative solutions, and staying ahead of emerging trends, franchisors can drive success for their entire network. Whether improving communication, streamlining operations, or enhancing customer experience, the right technology can make all the difference.

Franchisors, now is the time to prioritize technology integration. Explore the latest innovations, involve your franchisees in the decision-making process, and invest in solutions that align with your business goals. By doing so, you’ll not only boost your franchise’s success but also create a thriving community of empowered and engaged franchisees.

Ready to take the next step? Watch our recorded webinar to learn how technology can transform your franchise. Together, let’s unlock the full potential of your franchise network.

If you’re building a franchise, choose your locations carefully, as they can significantly affect your future success. Territory mapping helps franchisors determine where to place units to maximize profitability and reach. It’s a tricky process that depends on many variables, from customer demographics to the landscape of a city.

Understanding territory mapping is crucial for any franchisor. Here’s everything you need to know about franchise territory agreements, technologies, and mapping strategies.

The Basics of Franchise Territory Mapping

Virtually every franchise uses some form of territory mapping to allocate regions to franchisees. If a restaurant owner wants to franchise their business, they likely won’t open a new shop just down the block. They know that this placement wouldn’t help them reach new customers, and it would likely pull customers from the original restaurant. Instead, they will open another shop in another part of town.

This example displays the basic ideas behind franchise territory mapping and its complexity. Suppose the franchisor decides to add more units. In that case, they might encroach on one of the existing territories or need to expand to all-new areas. As businesses grow, so does territory mapping, which must consider many diverse factors.

What Is Franchise Territory Mapping?

Franchise territory mapping is the process of dividing regions into territories for franchisees, which can go by names like operating territories and exclusive areas. The franchisor grants the franchisee exclusive or non-exclusive rights to operate in the territory:

• Exclusive: If your franchise has exclusive territory rights, you agree not to set up another unit in the area that would compete with the other franchisee’s business.
• Non-exclusive: Non-exclusive territories do not offer these protections. The franchisor can establish their locations or allow other franchisees to establish shops.
• Hybrid: Some franchisors use a hybrid approach. You could offer exclusive rights for a few years or have an exclusive territory for one product but not another. Although more complex, this option can help balance unique needs.

A franchise can also have overlapping territories, in which multiple franchisees operate in the same space. In these situations, the franchisees often target different markets. For example, an apartment leasing company might have a branch dedicated to student housing near a college campus, even though it sits within a larger territory.

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Why Is Territory Mapping Important in Franchising?

The franchise territory model serves a few different purposes, such as:

• Preventing cannibalization: Market cannibalization occurs when a new franchise unit causes another unit to lose sales. Essentially, the new location takes customers from the old one. While the aggregate sales might look similar, the overhead costs increase, and unhappy franchisees are making less than they once were. Mapping franchise territories helps prevent cannibalization by outlining clear boundaries between units.
• Keeping territory distribution fair and profitable: Franchise territory maps often involve research on buyers within a region. By understanding and splitting up your customer base across different franchisees, you can better ensure an equitable division that helps everyone increase revenue.
• Avoiding white space: White space refers to the areas that aren’t well-covered, such as gaps between locations. Mapping franchise territories allows you to identify white spaces and prevent or fill them.
• Maintaining positive franchisee relationships: Franchisees are understandably frustrated when another franchisee encroaches on their territory. Territory mapping helps prevent this situation and allows you to communicate your policies easily with existing and potential franchisees. When your territory agreements are clear through robust mapping, franchisees know exactly what they’ve signed up for and what to expect.

The Importance of Franchise Territory Mapping for Business Growth

While territory mapping is necessary for any franchise, it’s essential for growing businesses. Growth entails new locations and franchise territory mapping ensures each new unit is placed in a profitable spot and selected according to relevant data.

How Franchise Mapping Contributes to Growth

Franchise mapping is a critical foundation for a growing franchise. It allows you to identify the most profitable opportunities and attract more franchisees. Mapping itself can help you reach customers more effectively, but it’s also a great marketing tool for attracting franchisees.

Territory mapping can give a franchise candidate more information on their potential customer base and profits by basing their territories on the characteristics of other successful franchise units. This offers reassurance and supports marketing efforts to potential customers. A map visualization also helps communicate boundaries.

Franchises with exclusive territory are particularly enticing for candidates because they offer protection. Your agreement to keep other units out of their territory gives the franchisee peace of mind, knowing that you won’t hurt their sales. When used appropriately, franchise territory maps can drastically transform your approach to business expansion, arming you with the correct information.

Franchise Territory Mapping and Franchisor Sales

If your goal is to increase sales, franchise territory mapping can also help. By avoiding cannibalization and gaps in coverage, mapping can help you reach every customer while leaving ample space for franchisees to work. This approach uses data to drive decisions.

Population data is valuable for any business owner, and territory mapping is ideal for reaching different populations. Defining franchise territories can reveal customer demands and opportunities even within one region.

One valuable benefit of territory mapping is enabling cooperation among your franchisees. Let’s say you identify different customer bases surrounding two locations of your financial advisory business. Location A is surrounded by young professionals, and Location B is surrounded by older adults.

Your franchisees can target their services for these customers and lean on each other’s resources. If Location A has a problem with retirement accounts, the team can call Location B for support and vice versa. They could also share resources during busy periods.

Your territory map can help you make decisions to maximize sales opportunities, improve the franchise’s overall reputation, and bolster relationships between franchisees.

Common Mistakes in Franchise Territory Mapping and How to Avoid Them

Building a territory map is often complex, and many franchisors make similar mistakes. Some problems to watch out for include:

• Cannibalizing customers: Cannibalization is a quick way to anger franchisees and reduce revenue, so avoid overlapping territories or placing units too close together.
• Not considering buyer characteristics: Consider your customers’ demographics when choosing a location.
• Not communicating policies to franchisees: Transparency is the best policy, so communicate your approach to franchise territory mapping upfront.
• Keeping your scope too narrow: Avoid tunneling on one aspect of the location, like traffic or nearby competition, while ignoring others.

Strategies to Avoid Mistakes in Franchise Territory Mapping

There are many different approaches to franchise territory mapping. Here are some tips and techniques to get started.

1. Choose the Dividing Lines Carefully

Territory maps can have boundaries based on many factors, such as census tracts, zip codes, or more prominent features like rivers and roads. Consider these aspects carefully and draw your boundaries so each territory has the necessary number and types of customers. For example, sticking to easily referenced borders like highways works well — unless it creates wildly diverse customer bases that would be hard to manage.

2. Consider Using Designated Market Areas

Designated Market Areas (DMAs) represent a geographic area that shares a media market, such as radio and TV ads. Ads are often purchased for an entire DMA and shared among those audiences. Marketing a new franchise is easier if you piggyback off established efforts from an existing franchise within the same DMA. You could also use DMAs to create your territory borders.

3. Determine Methods of Reaching Customers

The nature of your business affects territory size. For instance, a fast food chain stays put and needs to attract people within a certain distance. A service-based business such as a plumbing company may go further to reach customers. Consider how these behaviors will affect the necessary makeup of your territory.

4. Start by Defining Your Ideal Territory

Try working backward by figuring out what you want from the perfect territory. Determine its size and the type of customers that live there. Then, identify areas in your region that align with these characteristics.

Technology’s Role in Franchise Territory Mapping

As with many business activities, technology can streamline your franchise territory model and provide valuable tools for visualization and analysis. Territory mapping software can vary widely in complexity. Some support basic visualization, allowing you to plot territories on a digital map. Other software systems, like integrating third-party population data and performing white space analysis, support more advanced capabilities.

Whether you take a basic or advanced approach, territory mapping software can be valuable for communicating territory information with franchisees and identifying opportunities only a computer can find. Mapping technology can also help you organize large amounts of information on your region so you can use it effectively.

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Exploring the Legal Aspects of Franchise Territory Mapping

One of the reasons establishing a straightforward approach to territory mapping is so important is that not doing so can create legal implications for your franchise. Franchisors must understand the legal requirements associated with outlining territories and determining exclusivity. Work with an attorney with plenty of experience in franchising to help ensure your territory mapping plan complies with relevant laws and regulations.

Territorial Protection in Franchising

Without clear definitions, the meaning of your territory might be up for debate. Franchisors and franchisees may have conflicting strategies for success, and territorial protection helps give franchisees more control over their local market. Still, a protected territory is not the same as an exclusive territory, and the term requires clarity in the franchise disclosure document (FDD).

Your FDD must outline the protections you will offer in detail, usually under Item 12, to prevent misunderstandings and potential legal troubles. You must also avoid certain activities that could still be legally problematic, like encroaching on a territory under a different brand name or singling out one territory for encroachment.

Many franchisors grant themselves some flexibility while maintaining territorial protection in franchises by carving out exceptions, such as:

• Captive markets, like malls, stadiums, and airports.
• Online distribution, ensuring the franchisor can sell online to customers in a territory without encroaching.
• Private label rights allow the franchisor to sell in the territory using a different brand name or trademark.
• Performance contingencies require the franchisee to meet specific goals to keep exclusivity.

Exclusive Territory Rights

An exclusive territory is one in which the franchisee is the only one operating, but exclusive territory rights can entail other caveats. Franchisors should consider these elements and, if needed, include them in the FDD:

• Whether the franchisor can advertise and sell within the territory: Even if other franchisees can’t operate, franchisors may still want to do business in their territories.
• Whether the franchisee has the right of first refusal on adjacent territories: If you create a territory next door to an existing franchise, the existing franchisee would have the first opportunity to buy it.
• If the fees and royalties for exclusive territories change, you could offer exclusivity at a price by charging franchisees higher royalties and fees.

Can a Franchise Buy Back a Territory?

Franchises can often buy back territories according to the stipulations of the original agreement. For example, if you want to expand your franchisor-owned units or terminate an agreement with a franchisee, you could buy back the territory, regardless of whether the franchisee wants to sell. Usually, this will occur at fair market value.

How to Sell a Franchise Territory

Selling a franchise territory differs slightly from selling a unit without a specific location. Choosing a location is sometimes part of the appeal of joining a franchise. However, having a territory already selected also means you’ve already done some legwork. When choosing the location with your territory mapping strategy, you should know the territory’s customer base and understand the overall landscape.

Before talking to franchise candidates, build a materials package showing off the territory’s best selling points. Is it in a high-density area? Do you offer franchise-exclusive rights? Focus on developing a marketing strategy to gather qualified leads.

The Role of Data in Franchise Territory Mapping

Whatever strategies you choose, an effective franchise territory model always depends on high-quality data. Consider a combination of several types of data:

• Franchise data: FranConnect can help in this area. The platform can store, track, and analyze data for all units in your franchise.
• Population data: You can turn to third-party organizations that collect and maintain information databases for demographic and economic data. Some territory mapping software includes population data.
• Competitor analysis: Many businesses offer competitor analysis tools and services to help you see what you’re against in certain areas.

This information can help you understand the whole picture and avoid gaps when defining franchise territories. While you can map territories without any direction, a data-driven approach is essential for limiting risk and setting you and your franchisees up for success.

Grow Your Franchise With the Right Franchise Management Resources

With so many factors affecting territory mapping, you can understand why it deserves so much thought and attention. Effective franchise territory mapping is crucial to business growth, helping you identify profitable locations, reach your customers, and maintain good relationships with franchisees. Now you know what to watch for and how to conduct territory mapping successfully—let FranConnect help with the rest. We aim to arm franchisors and franchisees with the necessary resources to succeed.

After building your franchise map with one of the above methods, contact FranConnect for actionable next steps, like selling to franchise candidates and managing your finances. Our franchise management platform helps you gather and analyze data, develop your franchise, engage with franchisees, and maximize revenue.

Request a demo today to see FranConnect in action.

Most of us are past the point of thinking, “What would we do without the internet?” It’s transcended novelty to become, simply, a normal part of life. As a franchisor, you understand the necessity of harnessing the power of online marketing for your units. One way of doing this is setting up a Google Business Profile for each.

With Google Business Profiles (GBP), potential customers can absorb everything they need to know about a business without a single click after the initial Google search. Explore Google Business Profile features and how to list your franchise locations on Google.

What Is a Google Business Profile?

A Google Business Profile appears on the right side of your computer screen when you Google a business. On a mobile device, it will appear near the top or at the top of the search engine results page (SERP). GBPs reveal vital information about a business, such as:

• Location
• Hours of operation
• Phone number
• Website
• Service area

Creating Google Business Profiles is essential for improving local search engine optimization (SEO), which helps local businesses rank higher in SERPs. Each of your franchise units should have its own Google Business Profile. When customers search for your business, they’ll find a location nearest them. For example, a person on a work trip might Google their favorite hometown chain restaurant to find a dinner spot.

Helping your customers find locations near them that serve their needs can boost leads and sales for your franchise units.

How Google Business Profiles Can Benefit Franchises

Google Business Profiles are beneficial for businesses in any industry. Take these examples:

• Gyms: Those who belong to a gym with multiple locations may need to find somewhere to work out when they’re out of town for a work trip or headed to college. Additionally, prospective members can Google local gyms to find the closest one to them before signing up.
• Salons: Before making an appointment, people may Google a salon to see their hours and service areas.
• Restaurants: From a GBP, restaurant attendees can call for reservations, scan reviews and look at photos of dishes.
• Stores: People needing groceries or a new sweater in a pinch can find an open shop near them with one Google search.

Take a look at some of the features of Google Business Profiles that can benefit franchises.

Call Directly From the Listing

Google Business Profiles often have two places viewers can click to call — a button directly below the franchise name and a clickable phone number further down in the listing. Whether people have a question about a prescription, an appointment, holiday hours or specific services, all they have to do is Google the business name to find a phone number.

Request Directions to the Franchise Location

Clicking the “Directions” button under the franchise’s location leads viewers to Google Maps, where they can get directions to a business. This feature is especially convenient for travelers, people who have recently moved or those of us who aren’t great with directions.

Ensure Brand Consistency

Click to View the Franchise Website

Another button is the “Website” link, which leads directly to the company website. Easy access to a business website allows users to explore products, services, sales and company information when they don’t know a URL by heart.

Leave Customer Reviews

Reviews are one of the most valuable components of a Google Business Profile. Google displays an average star rating near the top of the listing, and farther down, individuals can browse these reviews, as well as company responses to them. People can also write reviews, which makes interacting with a brand easy.

How to Create a Google Business Profile for Your Franchise

You can create a Google Business Profile via Google Maps. After signing into Google Maps, choose between these options:

• Use the search bar to search your company address and click “Add your business” on the left of the Business Profile.
• Click “Add your business” after right-clicking anywhere on the map.
• Click the menu in the top left of the screen, and click “Add your business.”

As mentioned, you’ll want to create a Google Business Profile for each one of your franchise locations. Make sure to enter the company name exactly the same for each GBP — you should not change the business name unless your company’s real-world names vary based on location. The business category should also be the same for each franchise unit.

To edit your business profile on Google, search for it on Google Search or Google Maps and click “Edit profile.” From here, you can update your hours, change your phone number, or add or remove photos from your Google Business Profile.

How to Add Users to a Google Business Profile

You may not have time to manage every GBP yourself — and that’s OK! You can designate people to manage specific profiles. The owner creates the account and can invite other users to become owners and managers, the difference being that only owners can add or remove users.

To add users to your Google Business Profile:

1. Click “Menu” on your Business Profile.
2. Click the symbol for adding users in the top left.
3. Enter a name or email address.
4. Choose “Owner” or “Manager” under “Access.”
5. Click “Invite.”

How to Add Social Media Links to Your Google Business Profile

Social media is a fantastic place for users to learn more about your franchise units. In some regions, you may be able to add your social media links like your LinkedIn profile to your Google Business Profile:

1. Click “Edit profile” on your Google Business Profile.
2. Navigate to “Business information” and then “Contact.”
3. Click “Social profiles.”
4. Click the down arrow for a drop-down menu of possible social media links.
5. Select the profiles you’d like to add, and add the link to your profile.
6. Click save.

How to Optimize Your Google Business Profile

Once you’ve created your GBP, the next step is to optimize it. Start with these tips:

• Ensure everything is accurate: Inaccurate information may result in franchise units not showing up in SERPs or customers showing up to a business when it’s closed. Ensure all information is accurate for the best online experience.
• Add images: Photos give people a glimpse into a company’s interior or confirm a business location is where they think it is. Photos can also show menu items and products.
• Ask for reviews: Honest reviews can tell you what one franchise is doing well and where others can improve. Make sure to have your GBP managers respond to all reviews — not just the positive ones.
• Link to social media profiles: When prospective customers want to learn more about a business, there’s no better way than through a Facebook or LinkedIn page.
• Utilize the post feature: Posts allow businesses to update customers about information like sales, changes in hours or updated phone numbers.

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As a franchisor, your goal is to see growth in all of your franchise units. To help this overwhelming job become a reality, many franchisors turn to FranConnect.

Contact UsFranConnect is the leading franchise management software that helps businesses drive growth and improve operational performance. Request a demo from FranConnect or call 833-438-7523 to connect with one of our franchising experts and see how FranConnect helps companies grow 44% faster on average than the broader franchising market.

With constant change the only certainty, harnessing the power of data for growth amid shrinking resources and shifting consumer behavior is critical for franchise brands of all sizes. Advanced point-of-sale and customer relationship systems offer franchisors the digital footprints to engage, garner feedback, track trends, try new products, and create unmatched customer experiences. Analytic data, swiftly served up, can also be a powerful ally to predict the success of local marketing and franchise development tactics and drive growth-focused operations and franchise relations decisions.

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It may have started as a fun way to pass the time, but today’s social media environment provides one of the best forms of advertisement for modern businesses. It reaches users of all kinds, including potential franchisees. Social media offers several advantages if you want to convince people to become franchisees for your organization. It’s affordable, easy to use, and full of resources.

Still, you’ll need to know how to use it effectively. Each platform excels in different areas, and social media advertising differs from posting, though both have their place. If used correctly, social media can drastically improve your ability to reach and attract more franchisees.

Popular Social Media Platforms for Franchisors

Before we discuss using social media for franchise advertising, let’s review the major platforms and their differences. Understanding your options can help you choose the best ones for your audience. Facebook, Instagram, LinkedIn, Twitter, and TikTok are some of the most common platforms, each offering unique features and user demographics. Understanding these specialties can help you create more targeted content and maximize your platform reach.

1. Facebook

Facebook was one of the first social media websites to take the world by storm. As of January 2023, it had almost three billion monthly active users. It’s infamous all over the planet, especially in places like India, the United States, Indonesia, and Brazil. Although Facebook is still largely populated by younger crowds—primarily in the 25-34 age range—it appeals to all age groups.

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Popular ad formats on Facebook include photos and videos in the user’s feed and stories that take up the whole screen, showing up between user-generated stories. Posts are also highly versatile, as you can share photos, videos, links, slideshows, and much more when using Facebook for franchises.

2. Twitter

Twitter is another social media behemoth focusing on short, text-based updates. According to one estimate, 7.4% of all eligible people worldwide use Twitter. That number includes people over 13 who do not live in China, where the platform is blocked. Advertisers can potentially reach 372.9 million users.

Posts on Twitter, called Tweets, can include text, photos, videos, links, and hashtags, which are used to tag a post as being related to a specific topic. For example, a basketball game might have hashtags with the team names. Twitter has a significant focus on news, often issued directly from journalists and organizations. Using Twitter for franchise advertising can be a great way to connect with specific communities.

3. LinkedIn

LinkedIn is a career-focused platform designed for networking with other professionals in your field. As of April 2023, marketers could see a potential reach of 922.3 million users on LinkedIn ads. This platform has a relatively even distribution of women and men, with most users in the 25-34 age bracket. The 18-24 and 35-54 age brackets have about a fifth of LinkedIn’s users.

Unlike most other platforms, LinkedIn is almost solely dedicated to building careers, so your audience is likely already in the mindset of pursuing new business opportunities. You can create regular posts, place ads on the user’s feeds, put sponsored messages in a user’s inbox, or incorporate ads on the side of the page.

One unique way to promote your franchise on LinkedIn is with thought leadership. By publishing articles that show off your expertise, you can position yourself as a trusted partner and get your name out there.

4. Instagram

Instagram is an image- and video-based platform owned by the same company as Facebook. It has over two billion monthly active users, 60% of whom are 18-34 years old. Many users post personal updates, and influencers are popular on Instagram, promoting products through their content. Companies might post photos of their products, graphics to promote deals, or videos highlighting their process or team culture.

When using Instagram for franchises, you can make standard posts, which include photos, videos, and carousels with multiple images or videos. As with Facebook, you can place Instagram ads in the user’s feed or between stories, which are full-screen videos or photos, only visible for 24 hours. Reels are similar but stay up forever, like a regular post.

You might find Instagram a good match if you have a franchise focused on aesthetics, such as a photography studio or a wellness workshop. As a platform driven by visuals, its users often appreciate high-quality stylistic content. Still, it’s used by many people for different purposes, and its demographic tools can help you find the right audience.

5. TikTok

Like all of the apps on our list, TikTok is hugely popular. In 2023, it had 113.2 million users in the United States alone. It focuses on short-form videos, often accompanied by music. You’ll see skits, dances, educational content, clips from larger pieces of content, storytelling, and many other types of content.

One aspect that makes TikTok stand out is its young user base. As of September 2022, most content creators were 18-24 years old, contributing to TikTok’s popularity among Generation Z and Millennials. Keep this audience in mind when using TikTok for franchise ads. Videos tend to be more lighthearted, so this platform could be a great way to promote a fun franchise like a toy store, donut shop, or cafe.

How Franchisors Can Leverage Social Media

Social media offers a lot more than just an advertising space. It’s a place to engage with your audience — in this case, people who could open a franchise. It can also help you develop your brand image. First, it’s important to note the difference between paid advertisements and posting content:

• Standard posts: When you have an account on these social media platforms, you can post content like anyone else. Depending on the platform and your following, this content might get significant reach, but it might not. You could post organizational news, link to articles on your company blog, or highlight an outstanding franchisee. These posts are free to make, but increasing reach might call for tactics like using hashtags or having users share your post.
• Advertisements: The other option is to use advertisements. Ads often look similar to regular posts because they’re designed to look cohesive to the user. The difference is that you pay for these posts to get pushed to specific audiences, and you may have access to particular formats. Many platforms also give you comprehensive analytics with advertisements to help you learn more about your strategies.

Using Ads on Social Media

Some platforms, like Facebook and Instagram, let you promote or “boost” a standard post, making it function more like an ad. It will appear on users’ feeds but still looks like a regular post, sometimes with text marking it as boosted content. Most businesses do best with a healthy mix of organic posts and paid advertisements. Your ads help you reach more people, while posts develop your brand image and help you engage with customers.

Ads can also help you differentiate your content for potential franchisees from content for customers. If you don’t want to fill your company’s profile with posts about opening a franchise, you could put this messaging in ads, which will only show up to the specified audience.

Using ads involves more than making regular posts because you’ll need to choose who to target and how you’ll pay for the ads. Most platforms guide you through the process. For example, the Facebook Ads Manager asks you to choose an objective, such as brand awareness, engagement, or conversions, so that it can make suggestions accordingly.

Next, configure your target audience. It might take some trial and error, but you have many options. Analyze the demographics of your existing franchisees, looking at factors like age, gender, income, and hobbies. Targeting similar people can help you focus on the most qualified prospects.

Pricing varies between platforms, but you’ll typically set your budget and the timeframe for which you want to run the ad. The platform will keep delivering your ad to customers until it meets the budget. You can choose from many different pricing structures. It’s worth learning more about your options if you plan to invest heavily in social media advertising.

With these different posts defined, let’s look at some of the ways you can use social media for franchises.

Social Media Leads

A great way to use franchise social media marketing is to generate leads. As you reach more people with posts and ads, you can facilitate deeper connections and urge people to take action. You might end a post by telling people to message you directly, or you could push an ad that links to a webpage with more information on opening a franchise location.

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Social media’s expansive reach and diverse formats are ideal for generating leads, especially with granular audience targeting capabilities, which you can use to find more potential customers who wouldn’t otherwise see your brand.

Generating leads relies on collecting information. In other types of advertising, users might have to go through many steps to give you their information, like finding your website and filling out a form. Social media makes it much easier for them to connect with you. Your posts appear on their feeds, and their details are ready to share from their profiles. Between comments on posts, direct messages, phone numbers, and links to your website, social media lets users reach you in many ways.

Social media also helps you make the most of your leads through nurturing and conversion. It can nurture leads by helping you build relationships with them and support conversion with relevant, natural prompts. Use your calls to action to spur people along in the sales journey.

With so many ways to use social media, keeping track of leads can get complex. Use a franchise management platform with resources to manage your social media interactions. Good management is essential for following through with all of your leads and effectively guiding them through the sales funnel.

Tracking Performance and ROI

Most social media platforms offer analytics tools to help you understand your performance and maximize the return on investment (ROI) of your ad spending. Like other analytics platforms, these tools collect data on how users interact with your posts — whether organic posts or paid ads — and generate metrics you can track. You can use these metrics to assess your progress toward specific goals.

For instance, if you use social media to increase engagement, you could monitor the number of views your posts typically get. You might also track conversion rates to attract potential franchisees based on how often users contact you after seeing an ad. Metrics can ultimately tell you if your tactics are working. If not, they might point you in the right direction.

Some of the areas in which you can benefit from social media marketing for franchises include:

• ROI: If you spend time on social media, paid or not, you want to know that it works. Metrics can accomplish this task. They can help you show the efficacy of your social media activity to stakeholders by displaying exactly how many people your ads and posts reach.
• Decision-making: Metrics can provide insights into your content’s performance, allowing you to change strategies if necessary. They point you in the right direction and guide you toward better results.
• Social listening: A more qualitative way to assess social media activity is to track common topics being discussed. Pay attention to the conversation. The insights might help you improve your offerings or learn more about your audience. For example, you might know that many franchisees are confused about how opening a store works. Making content that explains the process could help push them toward franchising and boost conversions.

While social media platforms offer insights into your performance on that platform, they don’t show you the bigger picture. Plus, navigating to the individual platforms can be time-consuming and cumbersome. A franchise social media management system can pull data from all your social media platforms, providing a comprehensive picture that lets you drill down into specific platforms and demographics. FranConnect, for instance, can integrate data from all major social media platforms to help you plan your outreach and engage more potential franchisees.

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Finding potential franchisees can be difficult, but social media offers the ideal environment for reaching new people. With granular targeting capabilities and various format options, social media can help you generate high-quality leads and grow your franchise. Managing multiple platforms and types of advertising is a great way to cover your bases, but you need the right resources for tracking performance and nurturing leads across platforms.

FranConnect is a comprehensive franchise management system with many social media tools to help collect metrics, identify your target audience, track leads, and more. Integrate your franchise’s social media platforms to see the whole picture and meet your goals. Request your demo today to see FranConnect in action and learn more about how it can help you tackle social media management.

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