If you’re a franchisor, it is imperative for you and all your franchisees to be using a common point of sale (POS) system. Having one unified POS solution enables franchisors to look for customer trends, improve overall customer service, and generally standardize operations. Not having this puts you at risk of zero transparency between franchises, losing money due to lost payment data, and poor inventory management, among other things.
One immediate problem is that franchisees who are using Square and other platforms (Stripe, Paypal) are unable to sell all their data in one place or in real time. Control makes this easy because it aggregates ALL of your payment data, even across multiple platforms and multiple locations. From one dashboard set up on Control, you can gain insight into revenue drivers, cost metrics, and payment performance across multiple (even hundreds or thousands of Square businesses), allowing you to focus on growth and expansion.
What you can streamline through one POS
Tracking all of your data across multiple franchise locations is just good business sense. Traditionally, franchisors would receive self-reported franchise data from all their locations, which made things like inventory management and revenue analysis an unusually time-consuming process. Standardizing this data through a universal POS creates huge benefits for both franchisors and franchisees. Here are a few keys ways these benefits work:
Whether it’s a restaurant or other type of retail business, franchisees typically purchase the bulk of their inventory directly from franchisors. Having all sales data for products sold available in one place allows the franchisor to manage inventory in real time, to avoid the risk of ever running out of items, easily manage bulk orders, and set timely alerts to restock key items or products. This can easily be done through a cloud-based POS.
As we mentioned in our Top 5 Ways Franchises Fail blog, not having SOPs and a system followed across all franchises can be one of the main reasons a franchise fails. A point of sale system can help greatly with standardizing operations, but an added benefit to customers is that many of them have built-in loyalty programs. For example, a POS can collect customer email addresses, making it easy to send out occasional discount codes, coupons, and other loyalty rewards. This can be easily personalized based on a customer’s purchase history.
In order for a franchisor to succeed, s/he must know how their businesses are performing at all times. It is crucial to be able to use the hourly reporting and analytics features that most POS systems provide. At any time, owners and franchisors can take a look at total sales, gross profit, and transaction history. Then, they can do a deep dive, if needed, into larger purchase trends like changes in sales by the hour or make quick decisions on things like offering a flash sales to offload underperforming items or take advantage of seasonal trends.
They can also track what is happening with employees, seeing when they’re clocking in and out and quickly taking care of any last minute scheduling changes or understaffing issues. Employees can also be trained on using the POS in a uniform fashion across franchises, allowing them to input transactions, run reports and utilize management tools.
It’s well-known that retail businesses are in a low-margin industry, so it is even more crucial for them to measure and manage their operations. Working with unified POS data means that franchisors can leverage analytics to determine which locations are at-risk.
Also, combining POS and management technologies means that franchisors are improving the accuracy of reports, and thereby freeing up their time for other tasks. Any funds spent on integrating a universal POS system would be quickly earned back in reduced training time and cost, increased sales, and improved royalties.
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Ultimately, unifying sales data through a singular POS used across all franchises, enables business owners to create transparency, implement change quickly, and maintain a good franchisor-franchisee relationship.
Control will help you get real-time aggregated data and separate revenue of all business units. You’ll also get sales data for all items so you can assess what products are performing and which are not, as well as at what times of day/seasons so you can staff appropriately.