A roundup of franchise news you can really sink your teeth into follows.
2012 Is The Year Of Technology For Franchises
Great Clips is a company that delivers haircuts to the masses. While that’s worthwhile, it’s hardly revolutionary. It’s how they’re delivering these services that’s fresh.
Great Clips is one of those franchises that has embraced technology, bringing in a mobile application, an online check-in and other web-based services to make things easier on customers. We’ve talked before about why technology is so important to franchises and small businesses, but it’s worth remembering that most consumers are now online and like to be there. The more ways you can cut down on their time spent in the shop, the more time you can spend maximizing the good feelings that come out of a visit.
Great Clips instinctively understand that. By taking away the hassle of waiting in line or having to drop by or make a call to get an appointment, they’ve made the whole experience about walking in, getting a great haircut and talking to the customer. That’s a winner, and franchises would do well to remember that.
Franchisee Incentives On The Rise
Our friends over at PointBlank talked about this yesterday, but we’d like to expand upon the point a bit. Restaurant chains really are sinking more into incentives for their franchisees:
Companies such as Papa John’s International Inc. and Denny’s Corp. are establishing lending programs, cutting back royalty fees and assisting their franchisees in other ways to push growth in new markets and help those in challenged ones, even if it hurts the company’s earnings in the short term.
Don Graham, head of development for Papa John’s, says it is tough, especially for small franchisees, to secure the proper financing for expanding in this economy. It also has become increasingly competitive among restaurant chains to win over the attention of large, lucrative franchisees.
This may become par for the course in 2012. With an opportunity to seize growth in the offing, franchisors will be aggressive about getting franchisees to go for new locations and push expansion. Incentives just so happen to be the best way to do it.
Tax Cuts Taking A Time Out
Franchisees may be effected by the tax cuts Congress is lazily letting languish in Washington these days. BizEngine took a look earlier this week.