One of the hallmarks of the franchising model is that most, if not all, franchise concepts don’t require any prior experience to own and operate. This is primarily due to the comprehensive amount of training and close-knit, ongoing support provided by the franchisor. Many brands take great pride in developing university style learning centers, where newly minted owners get both classroom and on-the-job training. Support comes in all forms and manners, from call centers staffed 24/7 and recurring check-ins to the proliferation of personalized franchise business coaches assigned to new franchisees. It’s all done with one primary goal in mind – to ensure the success of new owners, many of whom have never owned and operated a business of their own. The ability to rely on corporate assistance, as well as that of the franchisees in their networks have become invaluable resources that ensure the collective success of the brand.
But there’s also another increasingly important factor. The rapid-fire advancement of technologies, proprietary software suites, and app-based development tools designed to help franchisees with sales, new business acquisitions, and the day-to-day operation of running their new businesses.
Where Technology Intersects With Franchising
Technological advancements can be found in multiple areas of the franchising business model, primarily in areas where there’s a direct user benefit that adds value to the opportunity. What technology affects are the core processes of the business model itself – designed to make things easier and more scalable for franchisees in the system. Examples can be found in all levels of marketing and promotion, equipment and inventory control, recruiting, staffing, and training – just to name a few. Franchisors are sharpening their appeal by harnessing the power of big data and algorithms to make decisions that streamline operations, create efficiency, and save both money and time. And it goes without saying that AI is playing an ever-increasing role in an abundance of these efforts.
The Rise of Enterprise Platforms
As franchisors work tirelessly to make their operations scalable and simple enough for any new owner to access, we’re seeing a rise in enterprise level platforms, many of which are proprietary in nature. At the heart of these systems is a custom-designed infrastructure that can help owners with every aspect of the business they’re operating. One good example is Unleashed Brands, the parent company of seven different youth enrichment brands. Their comprehensive platform includes a full suite of operational systems and processes that offer untold value to the franchisees in their network. There are secure modules for business management, business intelligence, training and development, and procurement. The sheer amount of information their franchisees can access and the assistance the platform provides for running the day-to-day operations is nothing short of impressive. And it’s becoming more and more of a key selling point when it comes to recruiting qualified candidates.
Using High Tech to Flip Houses
As the CEO of New Again Houses, we help franchisees specialize in the entrepreneurial acquisition, renovation, and profitable resale of older homes – adding value through construction upgrades. As one might expect, we generate a lot of interest from candidates with backgrounds in general contracting and residential real estate – an industry that’s definitely reached a crossroads of sorts now that the traditional 6% commission structure is a thing of the past. But we also knew we had to appeal to those without a real estate background, construction remodeling experience, or even basic technical expertise.
With the assistance of a full stack software engineer, we set out to design our proprietary MasterSuite Technology™ software platform. Since our business model revolves around the acquisition of residential properties, we knew the platform needed to be sophisticated, powerful, but easy enough to provide an unmatched user experience. Like many other professional grade analysis software suites, much of the back end power comes from algorithm-driven data that can be accessed quickly and accurately. Even if our franchisees have no prior industry experience with evaluating and flipping residential real estate, the technology we’ve developed can help them:
- Focus on finding the most suitable – and profitable – prospects
- Calculate risk factor based on financial analysis
- Calculate values and required profit margins
- Generate quick and accurate remodeling estimates by locality
- Forecast specific construction budgets by locality
- Assess accurate calculations and projections for final profitability and ROI
Essentially, we’ve done what we can to remove the emotion from analyzing deals to determine whether a specific property involves too much risk or too little profitability. But there’s even more. We also included links in the software that redirect our franchisees to our Flip Simulator training program, in which owners can run virtual flipping of hypothetical properties – because we know that practice makes perfect. There’s also a portal to connect franchisees with our executive leadership team for support, contract libraries, and other professional partners who can offer invaluable advice – when you need it (which is typically right away). Lastly, our MasterSuite Technology offers a direct link to our proprietary funding partner, where owners can connect with the financing and capital needed to renovate older homes into newer, more modern, and more valuable real estate prospects.
New Again Houses is not alone in the quest to use proprietary software platforms to ensure the success of our franchisees. What we’ve learned over the years has come from observation, trial, sometimes error, and adoption. But like any other franchisor that participates in specialized technological advancements, it’s rarely an investment you’ll regret down the road.
About the Author
Matt Lavinder is the CEO of New Again Houses, a franchisor that specializes in the entrepreneurial acquisition, renovation, and profitable resale of older homes – adding value through construction upgrades. The brand has made significant investments in technologies that help franchisees flip houses, promote their business through local marketing, obtain ongoing support, and access capital from the brand’s proprietary capital funder.