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Franchising in digital era – what lies ahead

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Franchising is an age-old method used by companies to expand their reach and grow in different markets. Due to the benefits of internet exposure, cost effectiveness, automation, and a broad reach that it offers, franchising has recently experienced a significant uptick in popularity with the advent of the digital era. This article will explore the impact of the digital era on franchising and what the future holds for this trend.

What is Franchising?

 Franchising is a process wherein a franchisor licenses its brand, systems, and processes to a franchisee in return for a fee. The franchisee updates these processes and systems as per the latest trends but must maintain the franchisor’s standards. The success of the franchise depends largely on how well the franchisor and franchisee can work together to leverage their combined strengths.

The Impact of Digitalization on Franchising

  1. Improved access to data – The emergence of digital technologies such as cloud computing and Big Data has enabled franchisors to harness and access large amounts of data. This enables them to understand the trends and make better decisions. Additionally, franchisors can leverage Big Data to collect data on the franchisor’s customers and analyze it to gain insights into their preferences, needs, and buying behavior.

  • Automation of processes – Franchisors are investing heavily in automation or process optimization. This helps them streamline their operations, eliminate manual errors, and improve customer service. Automation also saves costs and helps in faster decision-making. This helps both the franchisor and the franchisee to work in a more efficient and profitable manner.
  • Increased reach through digital media – With the emergence of digital media, franchisors can easily promote their products and services and increase their reach. Social media platforms such as Facebook, Twitter, and Instagram offer franchisors the opportunity to connect with their customers and promote their offerings. Digital media also enables franchisors to target specific audiences and build relationships with them.
  • Cost savings – The emergence of digital services has enabled franchisors to reduce costs related to advertising, marketing, and other business activities. With the help of online platforms, franchisors can easily advertise their products and services to a larger audience at a low cost. This reduces the cost of a franchise effectively, enabling the franchisor to expand their business at a much lower cost than traditional methods.

What Lies Ahead for Franchising in the Digital Era?

  1. More focus on technology – Franchisors will increasingly emphasize the importance of technology to ensure the success of their franchises. In fact, franchisors have already taken steps to invest in technologies such as automation, Big Data, and cloud computing to optimize their processes and increase their reach. Additionally, they are adopting technologies such as Artificial Intelligence, Machine learning, and Blockchain to further improve the success of their franchises.

  • Personalization of products and services – Franchisors have already begun to focus on providing personalized products and services to their customers. This facilitates increased customer loyalty and helps them retain their customers. Franchisors are also leveraging data analytics to gather information on their customers and develop personalization strategies to differentiate their products and services from other companies.
  • Focus on franchisee engagement – Franchisors are focusing more on engaging with their franchisees. This helps build trust between the franchisor and franchisee. Franchisors are implementing technologies such as chatbots, mobile apps, and social media campaigns to effectively interact with their franchisees and increase the efficiency of their operations.
  • More emphasis on franchisee education – Franchisors are paying more attention to educating their franchisees in order to ensure the success of their businesses. Franchisors are providing franchisees with the necessary training and resources to help them better understand the business model and leverage the latest technologies. The emphasis on franchisee education also helps to reduce the risk of franchise failure.


The emergence of the digital era has been a huge boon for franchisors as it has enabled them to leverage technologies such as automation, Big Data, and cloud computing to optimize their processes and increase their reach. Additionally, it has enabled them to target specific audiences and provide personalized products and services to their customers. With the focus on technology and franchisee engagement, franchising is poised to become more successful in the future.

About Apoorva: 

Apoorva is a technology services company that assists software products with ideation, developing prototypes, programming, creating a digital marketing presence and accelerating sales through direct contact. Over 150 for-profit and non-profit organizations, such as Xcel Energy, PeopleCare Health Services, Frontier Airlines and Centers for Spiritual Living have trusted Apoorva to build software. 

Apoorva was founded in 2001, has more than 50 employees, and uses proprietary and proven methodologies to bring technology products to the market. Contact us / Visit for more information.

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