After a great many years in franchise sales, I’m frequently asked the one question everyone asks when making a significant purchase. That question is, “how much does it cost?” In my current line of work, that question more specifically is, “how much does a franchise management tool cost?”
Also see: 3 Reasons Your Franchise Can’t Afford to not Automate
In This Post:
- How Much Does a Franchise Management Tool Cost?
- What are my Options?
- What Should I Know Before Purchasing?
- Franchise CRM/Management Solutions
How Much Does a Franchise Management Tool Cost?
I know what you’re here for, so I promise not to keep you waiting. You want to know exactly how much a franchise management tool will cost you. The simplest answer is – that depends. I know that’s not what you wanted to hear, but it’s true. The fact is, there is not a one size fits all answer to that question.
Think about it in terms of purchasing a car. We all know that a Volkswagen will cost you lots less than a BMW, or a Benz. All three however, are German made cars, right? So how would you answer that question when it applies to these vehicles? It depends, right? Sticking with this analogy, you also know that when you walk into a showroom, sticker price isn’t what you’ll be paying either. But, lots depends on whether you want the baseline model or the fully loaded top of the line vehicle. Other factors like cash vs. credit, the value of your trade, will also factor into your costs. So, let’s get back to the original question at hand and bring this back to Franchise Management vehicles. Same might be the case for prospects for your franchise, trying to figure out costs of entry, you too, must explain how, “it depends.” There are many factors that they must consider, right? Are they looking at a single, or multi-unit purchase, are they buying area development rights or the rights to sub-franchise?
Now, let’s bring the original question full circle: The cost of a franchise management tool should depend upon the following: What are your specific needs as a franchisor? Are you a brand new or emerging brand, looking to scale and track growth? Are you an expanding brand needing tools to manage Franchise Sales and Operations? Are you a Legacy brand, needing all the above, plus royalty and financial management, while also trying to manage collaboratively, across a large team of remote users?
What are my Options?
Before we get into the various platforms and choices on the market, I’m going to address the elephant in the room. The elephant being, my position, as President of FRM Solutions. Yes, my bias is to be expected, but I’m truly writing this to empower you as a consumer. My desire is for you to make the best decision for your organization, when it’s time to choose your tools. As my good friend Keith Gerson at FranConnect always says, “the best CRM/software management tool, is the one you’ll use.”
What Should I Look for in a Franchise Management Tool?
1) Flexibility – the right tool for any organization is one that fits your organization’s needs and grows with them.
2) Understanding of Franchise – while evaluating FRM potential clients sometimes ask, “why can’t I just use a regular CRM like Zoho, or Sugar?” Well, the truth is, you can. But, what you will sacrifice, will be all of the franchise-centric fields, workflows, and specific stages of lifecycle disciplines, dashboards, reports, metrics, KPIs and data analysis, that don’t come out of the box, with plain vanilla tools.
3) Partnership – Your franchise-centric CRM/Franchise Relationship Management provider should care about your business. They shouldn’t just be a SaaS provider but rather, someone that you can trust, someone who can and will provide advisement and takes steps with you to grow. They should be a company that is as good a fit culturally, as they are competent in the further development of their platform. They should live and breathe franchise culture, as much as they do software.
What Should I Know Before Purchasing?
Know that you are making an investment for the future of your organization. What may seem like a major expense now, will save you even more in the long run, in terms of recruitment and operating costs. Think about the experience you want candidates for your franchise to encounter, as they move through your funnel, doing their due diligence. That’s the same feeling you should get from your franchise management/CRM solution provider, as you move toward reviewing several competitors and arriving at a decision.
Below please find a list of all the franchise specific CRMs that I know of, in North America. I share this with you, borrowing a page from the playbook of one of my mentors, Sy Syms. Years ago, Syms was a chain of retail clothing stores in the metro New York area. Every single radio commercial they ran, explained something about their value proposition and how they differed from others in their competitive set. Those commercials all ended with Sy himself, explaining that “an educated consumer, is our best customer.” Confident of the same, I end this blog inviting you to do the same. Compare us to the others in our space. Then, determine which vehicle provides the best fit for your needs. The VW, the Beemer or the Benz. They are all listed below and with any questions about FRM, please feel free to reach us at: sales@frmsolutions.com, or contact me directly, at sfriedman@frmsolutions.com
Franchise CRM/Management Solutions
- ChainSynch
- FranConnect
- Franchise Soft
- FRM Solutions
- IFX
- Naranga
