Technology has become a critical tool in franchising for operational efficiency, cost reduction and long-term success. Franchise leaders are increasingly introducing cutting-edge solutions to their brands. 

To understand the transformative role of technology in franchise management, 1851 Franchise spoke to industry experts Scott Svilich, chief operating officer of Next Health, and Jack Mashini, co-founder of Wing Snob.

The Most Impactful Technologies in Franchise Management

Technology plays a pivotal role at every stage of the franchise lifecycle, from site selection to ongoing operations. For example, at Next Health, advanced tools like 360FranTerra are employed to analyze demographics, psychographics and market data for strategic site selection. According to Svilich, this meticulous approach ensures that franchise locations are positioned for success from the outset. 

“We’re as thoughtful and strategic with the markets and sites we select for new locations as if each one was our one and only corporate location with the entire company’s success riding on it and leverage technology to make informed decisions,” he said.

Next Health leverages other key technologies to support franchise success, such as ZoHo, which ensures precise management during the pre-launch phase, tracking every detail from lease signings to construction. Post-launch, a robust CRM optimizes the customer journey, driving predictable financial outcomes and sustainable growth. Schoox, a learning management system (LMS), provides comprehensive staff training to ensure operational excellence. 

Using Technology to Streamline Operations and Reduce Costs

Franchisees can leverage technology to optimize operations and minimize expenses. Svilich emphasizes the transformative power of artificial intelligence (AI) and data-driven decision-making. By analyzing customer traffic patterns and seasonal trends, AI can help franchises determine optimal staffing levels and marketing strategies. 

“Service-based businesses like Next Health have fixed costs, such as rent and payroll,” said Svilich. “Put AI to work to analyze your customer traffic, seasonality, and industry and business-specific trends to understand when and how many staff members you need working, when to offer certain services, and have specific skill sets present.” 

Mashini underscores the value of cloud-based systems, which store data and run processes over the internet rather than relying on local servers or personal devices.They typically use remote servers hosted on the internet to store, manage and process data, offering accessibility from virtually anywhere with an internet connection.

“Utilizing a cloud based point of sale platform allows our franchisees to monitor sales and labor in real time to make decisions on cost cutting initiatives to be more profitable,” he said. 

The Role of Data Analytics in Improving Franchise Performance

Data analytics serves as the backbone of successful franchise operations. By leveraging actionable insights, franchise owners can make informed decisions that drive growth and efficiency.

“It can be easy to lean on your products or services and forget that the business is a living and breathing thing, then end up kicking yourself wondering why your forecasts aren't met and revenue is unpredictable,” said Svilich. “In this case, I’ve found that the issue is that they don’t have the tools to get the data that they need or that they don’t understand the data.” 

At Next Health, tools like Net Promoter Score (NPS) provide actionable insights into customer satisfaction and operational performance. NPS is a metric used to measure customer loyalty and satisfaction by asking customers how likely they are to recommend a brand or service to others.

“NPS provides immediate feedback on customer experiences, helping us identify operational risks and areas for improvement,” Svilich said. “Consistently monitoring NPS allows us to ensure that we are delivering exceptional service and maintaining a strong connection with our customer base.” 

Mashini shares a similar perspective, noting that data drives decisions at every level. “Data is our best friend,” he said. “We use data in every aspect of our business from store level unit economics to menu rollouts and real estate site selection.” 

Adopting New Technology Without Disrupting Existing Processes

Introducing new technology can be a challenge, but it’s a necessary step for staying competitive. Svilich advises franchisees to think strategically about technology adoption, prioritizing tools that integrate seamlessly into existing workflows. Collaboration with franchisors and fellow franchisees is essential for identifying and implementing effective solutions. 

“Remember that technology evolves more quickly than we can even imagine, especially with the pace of advancement in AI,” he said. “Do not marry yourself or your business to a technology vendor for too long. Ask the right questions: ‘How are you keeping up with trends?  How often are updates pushed through the platform? What innovations are in the pipeline that will positively impact my business?’ If the answers are lackluster, then it’s time to shop.”

Mashini also encourages franchisees to embrace change despite initial disruptions that might come. “Jump on board and just make the changes needed,” he said. “It’ll be messy at first but once implemented it’s smooth sailing ahead.”

Growing and selling franchises is difficult. No great franchise did it alone. Want to learn more about how 1851 helps franchisors grow their franchises with confidence? Visit www.1851growthclub.com and see what we can do for you.