All Systems Go: How To Launch a Franchise with the Correct POS System

JONNY EGAN Choosing the correct Point-of-Sale (POS) system for a franchise is one of the most critical operating decisions a franchisee faces because it affects the efficiency of business operations. POS systems are defined as a computerized network operated by a main computer and linked to several checkout terminals. To achieve the maximum level of satisfaction with a new POS system, it’s important to invest careful thought and effort into the selection process.  Common POS systems include a computer, receipt printer, lockable cash drawer, a bar code scanner, a magnetic swipe reader and a modem and pole display. Then there is the POS software, a critical element of any POS system. While there are many brands to choose from, some popular manufacturers include NCR Corporation, CAM Commerce Solutions and GotMerchant.com, among others. POS software has evolved substantially throughout the years. Nowadays, POS systems can be integrated with e-commerce for online selling, electronic payment processing, integrated accounting, video surveillance, ordering, purchasing stock, and much more. To ensure the appropriate POS is chosen, there are various guidelines to consider. An Adaptable System Look for a POS system capable of growing as needs increase. If a franchise is starting on a tight budget, a typical POS system may very well begin with a basic set-up. In most cases, this would be POS software running on a PC or Mac with just a drawer and printer receipt attached. As time develops, franchisees can add the necessary aspects of a POS system required for business, perhaps a credit card reader or bar code scanner, and keep upgrading as time passes and the franchise becomes more successful. Decide between ease-of-use against functionality The best systems should offer a balance of efficiency, ease-of-use and minimalistic time constraints when training employees on their new POS software. The more complex orders and/or inventory is, the more features will be needed to combine a structured POS system with the franchise. Don’t install complicated and unnecessary features just to make the POS software feel more robust.  Simply choose based on one’s requirements. Remember to take into account that training employees on the new system can also be a time-consuming operation. Supplier selection While this issue generally does not arise, the last thing a new franchise needs is a POS system crash resulting in sales loss. The three pillars of what to observe when choosing a supplier are customer support, reputation and product offerings. Doing research is a key factor before choosing a supplier for the franchise’s new POS system and software.  Investigate suppliers’ customer support options and ensure their hours of operation coincide with the franchise’s opening hours.  If they offer 24/7 support, that’s a bonus. If you come across a supplier interested in business, make sure to find out what stores have previously purchased their systems and how their name resonates within other franchisees’ walls. It is best advised to buy the POS software and POS hardware from the same supplier to ensure full system compatibility to avoid purchased software without analyzing hardware requirements and end up having an incompatible mix resulting in further costs and more time delays.  Purchasing from the same supplier makes assistance easier in the case of a system issue. In addition, the supplier will be able to offer the correct system based on one’s needs. A successful franchise launch will rely heavily on the POS systems chosen.  Make sure to do the right amount of due diligence to ensure it goes off without any errors.