Leveraging R365 for your Franchisees can provide full transparency into your Franchisor/Franchisee partnerships.
Having all your locations in a single R365 database provides many benefits:
1. Consolidated Financial Reporting and Billing
2. Control over Purchasing and Inventory Databases
3. Control over Product Mix
4. Healthy Competition amongst Franchisees with the P&L Comparison Report
5. Central Repository for Franchise Documentation and Communication
Allowing each Franchisee to maintain their own R365 database removes this transparency, however the burden of maintaining the database now falls on the Franchisee and is no longer the responsibility of the Franchisor.
That being said maintaining the R365 accounting/operations database is typically associated with a monthly technology fee that is passed onto the franchisee and provides additional revenue.
While we lose insights into the Franchisee's financial health and purchasing we are able to maintain polling of the POS to monitor sales and product mix. However if each Franchisee has a unique POS database then the responsibility for mapping the sales and payment types for the Franchise module billing will fall on the Franchisor. We now have the ability to pull only the Net Sales which negates the need for any mapping, but we lose check level detail and therefore product mix in this scenario.
Ideally we want an Enterprise POS solution in place and a single R365 database for a truly scalable Franchise model.
We have Franchisors with Franchisees in their databases ranging from 2 - 60 plus locations. Since the security is tied to the location assignment on the user roles there are no concerns with security. Additionally we have added Limited Accounting roles specific to Franchisees who want to do their own accounting within R365.
Onboarding your Franchisees to your existing database is fairly straight forward, just like adding a new location of your own. Keeping in mind that you will be billed for these locations and passing the cost onto your Franchisee.
How many locations does your company have and have you encountered any security issues? My company wants to take this approach and are being told it can't be done as they would have to delete our historical DSS and EDI with our food vendor. We are currently using R365 for the corporate entity and want to have our franchisees to start using it in 2021. Any insights are appreciated. Thanks
The biggest challenge is allocating Franchisor resources to maintain and manage the database. The Franchisor needs to assume the role of gatekeeper for the R365 database and not all Franchise groups have the bandwidth for this. But adding the cost of an R365 admin to the Franchisee billing can help offset the labor costs associated with managing and supporting the Franchisees.
What are the difficulties you have seen with having Franchise locations included in a single database?