Pros and Cons of the Shared Franchise E-commerce Model

The shared franchise e-commerce model is a variation of the pure-play franchisor model that considers the growing awareness and will of franchisees to be part of the internet enterprise while acknowledging the role that brick-and-mortar franchise representation plays in supporting the overall brand’s e-commerce strategy. 

Most franchisors using this model can propose a fixed or volume-based financial agreement with franchisees based on e-commerce sales that compensates for competing with physical sales transacted within the franchisees’ territory. 

Additionally, franchisors can help franchisees become an integral part of the e-commerce strategy by integrating online sales within local brick-and-mortar fulfillment. One example of this approach is “showrooming,” where franchisees can show customers more product options at their physical location and close orders through the franchise’s centralized e-commerce platform. 

In all cases, this model recognizes the crucial role franchisees play in the franchisor’s online success. Although the latter keeps a firm hold on the e-commerce component of the global sales strategy, franchisees can contribute from pre-sales to local fulfillment and customer service.