The franchise sector is booming. According to FranConnect, 79% of US franchisors plan to expand this year and 11% of these owners plan to add at least 25 units. What's more, FRANdata projects that franchising will recover its growth to nearly the pre-pandemic levels in most metrics by year-end.

This exponential growth is plausible, thanks to the advent of franchise eCommerce Platforms. In this article, we'll explore the opportunities that come with having a franchise eCommerce platform and reveal what to look out for when choosing an eCommerce solution for your business.

Why millennials are the driving force

The gradual shift in B2B purchasing decisions is driving B2B eCommerce. With older Millennials hitting their late thirties, more of this generation is assuming decision-making roles. In 2021, millennials make up nearly half of all lead buyers or financial approvers. These digitally savvy leaders prefer the convenience and speed of doing business that online services offer.

Over the years, Millennials have begun to explore ownerships in franchises. According to Franchise Ventures, 21.8% of prospective franchise owners in 2020 are Millennials. This figure is 35.8% up from 2018.

Source (News - Alert) (News - Alert): Franchise Ventures

The International Franchise Association argues that Millennials are valuable assets because of their digital savviness, innovative spirit, and hunger for knowledge. They are also a generation determined to change the world and make a difference. As more Millennials become franchise owners, we can expect the demand for franchise eCommerce platforms and other B2B technologies to increase even further.

How Franchise eCommerce Platforms Facilitate Franchisor-Franchise Partnerships

Franchise eCommerce Platforms offer several opportunities to franchisors. Let's look at some of these benefits:

Effective Support

Making the franchisor-franchisee relationship successful requires consistent support. Franchisees should be able to give and receive quick feedback. This is especially useful to new franchise owners yet to adapt to existing processes. Fortunately, franchise eCommerce platforms enable timely information sharing across the franchise units.

With these tools, franchisees are likely to receive quick, same-day responses from anywhere in the world, when and how they want the data. This enhances numerous processes in a franchise business, from onboarding and subsequent training to personalized prices, promotions, and product catalogues among many others

Quality Control

Fewer communication barriers also mean better quality control. Franchisees will have access to documented operational standards to ensure uniformity. While most locations may have slight differences, they can maintain a level of brand consistency. In cases franchisees purchase products from vetted third-party suppliers, multi-vendor support enhances the process. It connects these vendors and franchisees. Franchisors, in turn, can monitor suppliers to ensure they meet set standards. 

Reporting and Analytics

Franchise eCommerce platforms also optimize performance reporting. ECommerce solutions that integrate with core systems allow tracking of performance across several locations. The integration may deliver real-time data on inventory levels, pricing rules, or more to franchisees. By monitoring network-wide data, franchisors can uncover patterns to optimize operations.

Automate Workflows

ECommerce solutions allow businesses to scale operations. Repetitive tasks such as order management, franchisee onboarding, and follow-up activities are bottlenecks. Digital tools can handle these mundane tasks faster and more accurately. This significantly frees up your time to deliver better experiences in other areas.

Choosing an eCommerce Platform for Your Franchise

The right eCommerce for your franchise should be able to support your unique operations. Ideally, it should streamline your processes and deliver better experiences to end customers.

To meet the complex needs often associated with franchises, a B2B eCommerce solution may be a better choice. B2B systems offer essential features built specifically for businesses. Examples are multi-vendor support, dynamic pricing engine, user roles, permission controls, etc. They allow native integrations with other solutions like ERPs, warehouse management systems (WMS), CRMs, and accounting tools. While a B2C solution may have some functionalities, its capability is still on the low side. It would require substantial, constant customization to meet your needs.

Depending on your organizational structure and needs, you may require:

• Custom eCommerce solution:

Custom development is ideal for franchises with complex workflows and multiple connected systems. This solution delivers a more personalized experience. But building this system often requires considerable resources–time, development team, and money. It also requires consistent maintenance by franchisors afterwards.

• Vendor-based eCommerce solution:

Ready-made solutions often reflect the current market needs and trends better than custom tools. The service provider handles the security, maintenance, and certificates. These solutions require less initial setup costs and time than custom software. Yet, franchisors are restricted to only available features. Also, these tools may not scale at the same pace as your business.

Whichever solution you choose, there are key functionalities your franchise ecommerce platform should have. They include:

• Multi-warehouse management
• B2B corporate account management
• Security features
• API integration with various business systems
• Multiple currencies, pricing, and shopping lists
• Roles access and permissions controls
• Order & Inventory management
• Multi-channel CRM
• Dynamic pricing functionality
• Automation features
• Franchisee customer portal functionality.

How Franchise V and B Manages their Processes Effortlessly

V and B is a liquor franchise that caters to the after-work crowd. The products include wine, beer, and spirits. Customers may order online, buy on-premises, or gifts to their loved ones. Vand B was founded in 2001, has over 210 locations in France, and offers over 3,000 products.

With an extensive network to manage, V and B leveraged digital solutions to optimize their operation. Considering that a custom solution would have been expensive, the company opted for vendor-based software. With various technologies, Franchise V and B was able to implement cloud integration between ERP, product information management (PIM), their order management systems (OMS), and point-of-sale (POS). This consequently improved their entire order management process.

B2B Franchise eCommerce Platforms: A Priority for Franchises

Digital tools are far too critical to ignore in franchising. In an ecosystem—like a franchise—where multiple relationships exist, a single oversight can make or mar the entire network. The right eCommerce solution will provide company-wide visibility into daily operations allowing franchisors to build better relationships with franchisees. Franchisees, in turn, can then deliver an exceptional experience to end customers than before.