Franchise business systems today need to be efficient and run smoothly. The franchisees who pay for the system expect it to function. The franchisees also expect the system to function (because they were told this when they investigated the franchise).
When something doesn’t work, such as things that affect revenue and profit, frustration can result.
Let’s imagine that you are the proprietor of a retail business. Two things are essential for the operation of your business, and they both have to do collecting revenue.
1. Credit Card Processing Machine
Customers can choose to pay with cash, credit card or check when they purchase your product. Visa reports that almost every third purchase is now made using a credit card.
Customers expect to be paid by credit cards if you run a franchise in retail or food service. The credit card processing machines are required to process these transactions. When a credit card is used, there are four entities involved. The four entities are:
- You (the merchant) will receive the payment
- The Merchant’s Bank
- The credit card is issued by the bank.
- The customer
You can only control the situation in front of your face as a franchisee. It’s important to have the best credit card processing technology and equipment at your disposal when you accept credit cards. Ask your franchise representative about the equipment that franchisees use to process credit cards.
Ask several franchisees. Every day, they’re on the field.
Your credit card processing system must work flawlessly when you franchise business is flooded with customers who pay by credit card. Customers today are impatient. If there is a problem with your machine or they are unable to make a payment, don’t expect to have them wait very long. They will leave your store and go elsewhere to buy the items they were looking for.
2. Point of Sale System
The point of sale is one of the most important pieces of equipment used in retail and restaurants today. A recent article on Wikipedia summarizes the importance of POS systems:
Retailers use POS systems that are customized to their needs. Retailers can use weighing scales and scanners as well as electronic and manual registers, EFTPOS Terminals, touch screens, and other hardware and software that is available.
Many of the POS systems available today include:
- Inventory management modules
- Financial information-transactions
- Gift card handling
- Validation of Coupons
- Customer tracking
POS systems can be customized to a great extent. You can add almost any feature you want. For maximum efficiency, some POS systems have integrated credit card processing.
