Why should you become a franchisor?

What are the reasons behind the flexibility of franchising?

The digitalisation of information and communications technology has called into question the working methods of companies. Whilst fears of the future and the levels of hierarchy often slow the process of adaptation in classic companies down, franchise systems are able to react in a far more flexible manner to changes. The transparency of the management systems makes selective changes and adaptations possible. The reorganisation of companies, which is occurring across the world, has resulted in fundamental changes through:

New Organisation of Labour
The numerous rules concerning the organisation of labour have lost their validity as a result of modern information technology. By using data banks information can be used by different people in different places at the same time. Generalists can achieve a highly specialised performance through using expert systems. With a computer system network companies can achieve the same advantages from centralisation or decentralisation. Simple employees can make far-reaching decisions by calling up information from data banks or other aids supported by computers. Employees are able to receive information at any time and from any place and pass it on as a result of cordless data communication systems. With the aid of interactive media customers can be as efficiently informed from a distance of the business as when they personally meet company representatives.

Considerable Process Acceleration
With the help of modern information technology the burden of habits which have accumulated over decades and which have hindered the development of companies can now be thrown off. To this purpose their functions must be called into question, outdated regulations must be ruthlessly broken and new work methods be found. If the potential is really exploited then the result will not only be an improvement in the existing processes but also a revolution in the everyday business of the company.

Consistent Delegation of Decision-Making
Computer networking makes it possible for all employees to have access to data at any time. As a result of having immediate access to customer-oriented data banks many decisions can be delegated to the employees who are on site which in turn will increase their sense of responsibility and motivation. As many businesses are dependent on rapid decisions being made due to the fast-moving markets, an abandonment of the time-consuming necessity of consulting with superiors can increase the competitiveness of the business.

Unreserved Customer Orientation
The kind, extent and intensity of customer contacts have become important competitive factors in many markets. In order to be able to build up close relationships with their customers, companies need to gather concrete knowledge on the wishes, expectations and habits of their customers. New techniques in the field of computers and data processing make it possible - as far as the data protection act allows - to draw up, process and pass on such information. By using the centrally stored data the contact person in the area can attempt to fulfil the customers’ requirements in a more selective manner.

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