*Per Eric Barboza
The market for franchises It's warmer than ever. According to data from the Brazilian Franchising Association (ABF), revenue from this segment reached R$ 240.6 billion in 2023, representing a growth of almost 14% compared to the previous year. Compared to 2019, a year before the COVID-19 pandemic, this increase was approximately 29%, according to the same research.
This scenario highlights franchise management as an essential element for the success of this business model, given the growing competitiveness of the market, in particular, the role of franchisees, who are at the forefront of operations. This management can be optimized with the consistent use of technology, allowing greater efficiency and control over a unit's operations.
The benefits of technology in franchise management
Firstly, when talking about the operation of a franchisee, it is important to highlight that it has particularities compared to a common company. Normally, the franchisee works with a price list pre-fixed by the franchisor, already knowing the inputs in their region and the prices they can charge, as well as the profit margins on each sale.
In this context, technology makes it easier to manage these price tables and pre-established campaigns. This means you can know exactly how much to sell for and what the profit margin is on each operation. In the case of campaigns, common in the franchise universe, where products or services go on sale during seasonal periods, technology facilitates management without the need for manual updates.
The main challenges for operating a franchisee
Taking these characteristics into account, there are a series of challenges that can impact a franchisee's operation. In addition to structural limitations, with a backoffice small and small team in the finance department, often the same person in charge of financial management also carries out the purchases necessary for the operation.
Furthermore, many opt for simple software that cannot eliminate significant difficulties in implementing the workflow. In this scenario, there is a lack of specialists in financial management, accounting and fiscal and taxation aspects, necessary for an efficient operation.
Considering this, simple off-the-shelf software can serve a small franchise, but when it comes to managing multiple CNPJs, it is not enough. There are small pieces of software on the market that meet basic needs, but many are limited in functionality.
Management systems are key for franchisees
The market has evolved in relation to business management systems and services (ERP) which integrate accounting for franchisees, expanding the operational flow beyond daily activities and covering obligations to the tax authorities. These solutions allow for comprehensive and efficient management, meeting the diverse needs of franchise operations, both simple and complex.
Furthermore, the technology present in these platforms helps to overcome the barrier of dealing with multiple systems, centralizing all information in a single place. This simplifies the process for the franchisee, who does not need to be an expert to operate it.
The technology also allows, using APIs, for external data to be automatically inserted into the platform, automatically updating prices. This eliminates the operational burden on the franchisee of constantly updating the table, a task that can be extensive and take a lot of time on a daily basis.
Likewise, some automation systems, such as RPA (Robotic Process Automation), are increasingly being implemented to automate flows within these ERPs. When issuing a service to the customer's CNPJ, for example, it is possible to automatically search for the corresponding invoice and integrate it into the solution. This automation eliminates the need for manual bookkeeping, providing significant operational efficiency.
Generally speaking, this operational efficiency directly reflects consumers who are more satisfied with the services or products offered by the brand. Ultimately, investing in technology for franchise management has not just become a differentiator, but a mandatory item for franchisee operations. In a heated market, with an increasingly demanding public, effective operations have definitely become the soul of a successful business.
*Erick Barboza is ERP Market Manager at Benner Group, a company that offers business management software and technology services to revolutionize and simplify business.
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
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