Franchises do an incredible amount to help their franchisees, from providing support and guidance to the use of trademarks. However, achieving a unified payments system has proven to be a sticking point for such businesses, particularly as technologies advance and new solutions are introduced.
The recent pandemic saw many quick service restaurants (QSRs), which are very often franchises, adopt a hybrid model of payments acceptance. This saw them partly fulfilling orders for customers visiting the restaurant in person and partly via delivery apps or orders placed online.
We have seen a degree of standardisation for payment processes, with most large franchise brands now able to mandate things like eWallet acceptance: even prior to the pandemic there was an increase in the use of cashier-less terminals in QSRs. Far more common, however, are franchises with a patchwork of payment systems, usually put in place by the franchisees rather than the brand.
Franchisees are therefore tasked with incorporating and installing Plug & Play solutions, delivering a reliable omnichannel approach, and making sure that all customer journeys mirror their parent brand, all while adding value-added services to answer consumer needs. Let’s look at a few key issues this could bring and how they can be addressed:
High cost per transaction
One of the key issues with the franchise model is that transactions are not processed en masse. Each franchisee will have their payments processed as an individual company, cutting into their profits – even more so if they their online and offline payments are processed differently. This is not a concern for other centralised retailers. Instead, consider consolidating transaction flows to enable a better price per transaction. By processing every payment from a country’s franchises at one time, both franchise and franchisees benefit from economies of scale.
Non-standard payments technology
Franchisees may have to source their own payment terminals, point of sale (POS) systems and other vital pieces of technology, particularly if they are part of a smaller franchise. Therefore, they often end up paying full retail prices for items that they can’t do without, and there is no quality control from the brand. Additionally, there will be little opportunity for the brand to offer support with technology; if a system goes down, the franchisee is on their own to sort the problem.
A simple solution is to set technology at franchise level and standardise throughout the business. This will enable the franchisee to benefit from economies of scale when implementing new systems, but technical support and training will be easier, and customers can enjoy a better overall experience with the brand.
A lack of a cohesive online and offline experience
With so many transactions taking place digitally, franchises must make sure that the customer journey is cohesive, whether that’s online, offline, or between the different franchise outlets. No matter how or where they pay, customers should have an experience that it is fast and in fitting with the franchise’s brand. A good solution is to implement a brand-down omnichannel approach means that any time a customer interacts with a brand they get the same experience.
No single onboarding experience
With payment technology spread between multiple providers it is often left to each franchisee to onboard themselves and their employees. But this can lead to an unequal training experience, with some employees needing to be re-trained, particularly if they move to a different franchisee location. Advanced partners such as Worldline can offer an online portal to ensure that franchisees can get the training they need for themselves and their staff. There are dedicated content, onboarding and reporting tools, and support teams are tasked with making the entire process as smooth as possible.
Levelling up franchises together
The solutions to many of these issues often involve having a brand standardise and centralise their technology, whether it is the hardware in their stores or the cloud-based software backing it up. This could be a costly, difficult process, but the right payments partner can make it far easier.
The Worldline franchise offer that will be rolling out across several European territories in the coming months will be a key way in which franchises deepen the support they give to their franchisees and allow them both to keep on being successful together.
