3 minute read
ADAPTABILITY INCREASES OPPORTUNITY
Wynn Williams on the need for franchise agreements to allow for new opportunities
Market conditions and customer demand are constantly changing, which requires franchisors to be able to pivot quickly in order to optimise opportunities. ‘Pivoting’ is not a concept usually associated with franchised businesses, which are better known for prescriptive legal agreements and consistency across a network.
Despite this need for strict controls, however, franchisors and franchisees must remain open to evolving their businesses to remain sustainable.
Technology and consumer engagement
Advancements in technology are revolutionising the way franchised networks operate. Old-school printed compliance and training manuals have made way for software-based and in-person training. Induction programmes are now supported by online training modules utilising videos, quiz-style tests and gamification.
Consumer engagement can now leverage data collected to tailor bespoke marketing campaigns targeted at subsets of consumers. Targeted social media advertising further helps to build brand recognition and grow consumer engagement at a granular level.
While these advancements create opportunities for franchised networks, franchisors do need take steps to carefully protect this data in accordance with local and global privacy laws.
Alternate channels, new products and ESG governance
Evolving franchisors often look to exploit new channels to build brand awareness and attract new consumers. Franchisors and franchisees must be open to such changes, even if they weren’t initially contemplated in the franchise agreement. Nando’s sauces and bottled Boost Juice being available in grocery stores, and real estate agents diversifying to offer property management or mortgage brokering, are great examples.
Environmental, social and corporate governance has become an important priority with franchisors increasingly expected to take the lead on what this means for the franchised network. For example, Hell Pizza has adopted a sustainability plan with a goal of being the first fast-food restaurant to be completely carbon neutral from 2024, and sustainability was a key element for many entries in the recent Westpac New Zealand Franchise Awards. Wynn Williams was named Service Provider of the Year in the 2023 Awards (see page 24 of this magazine).
Changes to laws
Ideally franchisors should have protections in the franchise agreement that allow for changes to laws, the market and consumer behaviours.
Where a franchise agreement doesn’t contemplate changes, then the franchisor’s approach to compliance and supporting their franchisees will be critical to driving change successfully and keeping the all-important franchise relationship intact.
‘At Wynn Williams, we can assist with the implementation of change,’ says Katrina Hammon. ‘We can also update franchise agreements to allow for adaptability that enables evolution of the brand, the business and the ability to exploit new opportunities. If you’re looking at new directions, contact us today.’
Advertiser Info
Wynn Williams
Contact Katrina Hammon
P 0-9-300 2647 M 021 221 8847
E katrina.hammon@wynnwilliams.co.nz
