5 Questions to Consider When Investing in Franchise Technology in 2025

December 2024

By Lizzy Young, CFE, CareerPlug

As digital tools evolve more quickly than ever, franchisors everywhere strive to keep up with the technological curve – and the competition.

However, technology is rarely a one-size-fits-all solution. Investing in the right franchise technology requires thoughtful consideration of current needs and long-term goals.

Making an informed decision for your franchise system can save time, resources, and effort down the line. Before committing to a new tech investment, franchise leaders should ask themselves five essential questions to make smart, future-proof decisions:

Does the technology provide the reporting capabilities you need to optimize and grow?
How user-friendly is the technology for franchisees, managers, and employees?
How does the supplier’s support team measure up?
What’s the time commitment for implementation, and what resources are available for support?
Does the new technology integrate with your existing tech stack, and what will happen if you switch those vendors?

Let’s dive into each of these questions a little deeper and how considering these points can help you make the right decision when investing in franchise technology.

Does the technology provide the reporting capabilities you need to optimize and grow?

Data analysis is crucial for scaling a franchise system, and it’s important to ensure that you have access to two key types of data: system-wide and unit-level reporting. Additionally, the reporting features must be robust enough to address your franchise’s specific needs and metrics. You should also consider ease of use. If the reports are too complex or difficult to navigate, you may spend more time extracting and analyzing data than acting on it.

How user-friendly is the technology for franchisees, managers, and employees?

Just like technology should enhance customer experience, it should also simplify operations for franchisees, field coaches, managers, and support teams. Watching a demo video or participating in a live demo is helpful, but make sure you also experience it firsthand or test it with a select group of franchisees. If possible, opt for a free trial and involve members of your Franchise Advisory Council to gather feedback and gauge how well the technology would be adopted across the network.

How does the supplier’s support team measure up?

Not only are trustworthy suppliers key to strong franchisee support, but they can also greatly impact your operations and franchise development efforts. The last thing you want to do is rush a decision. Take the time to conduct due diligence and evaluate the supplier’s team. This can be done through a combination of interactions with their support team, research through online reviews, testimonials, and case studies, or reaching out to your network of fellow franchisors to inquire about firsthand experiences.

Do they have the expertise and responsiveness you require? Will they “walk the walk” with your corporate team to ensure smooth implementation and adoption? Will they be there when obstacles arise? Most importantly, do they understand the nuances of the franchise model and take the time to learn your brand’s specific needs?

What’s the time commitment for implementation, and what resources are available for support?

Rolling out new systems within a franchise network can be complex and time-consuming. However, choosing a supplier with an organized and resourceful launch strategy can make a significant difference.

From comprehensive “How-to” guides and instructional videos to dedicated franchisee success specialists, ask potential suppliers to outline the resources they provide to simplify the rollout. Some suppliers may even host webinars or town halls for franchisees to learn more about the new tech and address any questions.

Of course, the support needed depends on your franchise system and how you prefer to partner with your suppliers. If you prefer a supplier who is more hands-off with the franchisees, but still there for your corporate and field teams, your preferences are something to discuss early on to ensure you’re each aligned with what a potential partnership would consist of.

Does the new technology integrate with your existing tech stack, and what will happen if you switch those vendors?

Integrating new technology into your existing tech stack can be challenging, but the right integrations can save you a lot of time initially and down the road. But ensuring compatibility with the tools franchisees currently use is only one piece of the puzzle. Future-proofing your tech strategy means thinking ahead about how different systems will work together.

If you anticipate changes to your tech stack in the coming months or years, ask which other vendors the technology can integrate with. If you’re actively seeking other new vendors, they may even be able to provide recommendations based on their preferred partners. Of course, you should still do your research to ensure that other franchisors are satisfied with all potential vendors.

Whatever technologies you choose and whenever you implement them, one thing is certain: staying ahead of the curve through proactive decisions will be your greatest advantage.

Lizzy Young, CFE, is the senior marketing manager, partner acquisition at CareerPlug. Since entering the franchise industry in 2019, Lizzy has held key roles in marketing, PR, and business development for franchisors, franchisees, and suppliers. A Certified Franchise Executive, Certified Franchise Marketer, Top Franchising Voice on LinkedIn, and Co-Chair of the Women’s Franchise Network of Chicago, she actively engages in networking, learning, and supporting the franchise community. As the Senior Marketing Manager of Partner Acquisition at CareerPlug, Lizzy partners with franchisors to help their franchisees hire and retain top talent. For more information about IFA supplier member CareerPlug, please visit franchise.org/suppliers/careerplug.