Many people get into a franchise with the hope of fast-tracking their way to a lucrative retail business. The promise of tapping into strong brand recognition, established business processes, supplier relationships and collective marketing might are a major draw card.
However, a franchisee simply can’t do everything themselves or be there all the time. They must rely on employees to interact with customers, process transactions, handle cash, receive and count stock and execute other day-to-day operations. But all too often franchisees run into challenges around the day to day management of employees. Intentional employee fraud, operational inefficiencies and training deficiencies are a constant threat and risk of loss for franchisees that may go undetected for long periods of time.
Likewise, the pressures of building and maintaining a profitable business are a constant challenge for franchisees. This may ultimately lead to the temptation to artificially deflate reported revenue figures to reduce royalty fees paid to the master franchisor. An unfortunate fact that poses a significant ongoing risk for franchisors.
Adding value to your franchise with automated loss prevention
By monitoring a broad spectrum of risk scenarios, an automated loss prevention platform empowers both franchisees and franchisors to monitor day-to-day operations and reduce the risk of loss. Whether highlighting cases of suspected understated revenue or identifying suspicious employee point of sale activity, such a platform acts as a “Command Centre” for monitoring retail operations.
In addition to monitoring overall compliance of a franchise network, an automated loss prevention platform can be a powerful value-add in franchisee agreements, helping franchisees maintain control of their operations as an added benefit of buying into a brand.
Gaining visibility, regaining control
Rather than relying on ‘gut feel’-based investigations that might take months to initiate and weeks to conclude, a comprehensive loss prevention platform should ensure operations are continually monitored and that key data is available in a secure, simple-to-use interface.
Imagine a platform that presents intuitive dashboards that bubble up high-risk activity across franchisees, stores, employees and operating scenarios, allowing you to drill in to view trends, patterns and to hone in on relevant transaction and item level data.
Such an approach allows you to move from laborious bottom-up investigations to pro-active top-down investigations, providing a significant headstart on investigations. Retail Defender provides such a platform in a cost effective, modular solution that suits all retailers.
Making the most of your hard work
Successful franchising can be hard enough even without the risk of fraud, operational inefficiency and training deficiencies. With the help of smart technology tailored to address the vulnerabilities inherent in your specific business environment, you and your franchisee can do more to tackle fraud and lost revenue, faster and with fewer resources.