Who better to ask about the wild, wonderful world of franchising and its evolution over the years than those who have been there to support franchise systems? Franchise Canada posed a series of questions to three franchise support service/supplier members to get a fresh perspective on where the franchise industry has been, and where it’s going
How does franchising today compare to franchising at the turn of the 21st century?
Greg Nisbet, managing director at RadioMogul, a custom in-store radio service: As it happens, I was actually a franchisee at the turn of the century, running the Toronto operation of a global education franchise. I already had my own school, but I decided to be a franchisee for my second location, in order to tap into a much larger business network. I don’t think that basic rationale has changed, but I’d say more entrepreneurs are now aware of the franchise model and how valuable an existing sales network is to grow a new business.
Tate Hackert, president and co-founder of ZayZoon, a financial empowerment platform for modern businesses: Franchising has evolved significantly since the turn of the century, driven by economic pressures like inflation and a more connected, tech-enabled world. Inflationary pressures have pushed businesses to rethink how they attract and retain talent, leading to the rise of innovative employee benefit options. Franchisors now recognize that technology isn’t just a tool; it’s a bridge that connects every aspect of their operations, from tracking performance to enhancing the employee experience. Franchisors have responded by adopting benefits like earned wage access (EWA), which alleviates financial stress and boosts employee retention.
Technology has also transformed how franchisors and franchisees connect. Platforms for time and attendance tracking, integrated payroll solutions, and analytics create operational efficiencies and foster better communication between franchisor and franchisee. These changes reflect the growing focus on leveraging technology to address workforce challenges and improve the overall franchise experience.
What are a few types of technological innovations in franchisor development and franchisee support that are currently being used in the industry?
Lyn Walker, marketing manager at Telpay, a platform to simplify payment workflow and boost productivity: One of the most game-changing tools in the franchise industry today is the franchise management system. While some franchises still rely on traditional software, most are making the leap to cloud-based platforms—and for good reason. These systems offer a seamless user experience, giving franchisors clear visibility into daily operations. They also make it easier to analyze performance, assess how individual units are doing, and decide on the next steps to drive success.
Another key piece of the tech puzzle is the customer relationship management (CRM) system. CRMs are the ultimate wingmen for managing customer interactions, tracking sales progress, and crafting effective marketing strategies that keep the brand thriving.
When it comes to financial operations, cloud-based solutions like Telpay are making waves. Franchisors can simplify royalty collection from franchisees, ensuring timely payments and offering detailed transaction reports for transparency. Franchisees, on the other hand, can handle payments to suppliers and process payroll for their employees—keeping their operations running smoothly and stress-free.
Hackert: One of the most impactful innovations is EWA, which empowers employees to access their wages instantly as they earn them, rather than waiting for payday and requesting an advance. This is particularly impactful in franchises where time and attendance tracking are already integrated into daily operations.
Over 60 per cent of employees lack the emergency savings to cover unexpected expenses. Leveraging existing systems, EWA solutions seamlessly sync with payroll and attendance data, ensuring employees have instant access to funds without creating administrative burdens for franchisees. This kind of technology not only improves employee satisfaction but also reduces turnover and boosts morale.
Nisbet: For both franchisor development and franchisee support, in my view, it’s all about the data. An incredible amount of possibly valuable information is being generated through many different types of technology—the trick is parsing through all the options and all that data and finding actionable outcomes that will actually help the business.
Where do you see the industry moving over the next 10 years when it comes to tech-driven solutions?
Hackert: The next decade will see tech-driven solutions like embedded EWA becoming industry standards. As financial wellness continues to influence employee productivity and retention, franchises will adopt comprehensive financial benefits packages that integrate seamlessly with their existing systems. Franchises that embrace these tech-driven innovations will set the standard, creating a model where technology supports not just the bottom line but also the people who make it possible. The franchises that succeed will be those that adopt a holistic approach to employee wellness and operational adaptability.
Walker: Automation, automation, automation! Simplifying workflows, increasing efficiency. Freeing up people to do the work that computers can’t, not data entry and manipulation.
Nisbet: Both robotics and AI will change the game. In the restaurant industry, widespread adoption of robotics is still a few years away, but labour shortages will certainly drive adoption at an increasing pace. In franchising more generally, with AI, people tend to see it as a standalone thing (like ChatGPT), but its real potential for franchising is how it will be built into existing and new applications that will analyze patterns and data and recommend actions to increase operating efficiency and profitability.