This modality is gaining more strength in the world every day, as it represents a growth opportunity for those companies that need local representation and also for entrepreneurs who want to enter the digital ecosystem with the support of a recognized brand.
The Internet has changed the way we perceive the world, move around and consume, so much so that the business models known as franchises have effectively gone virtual and in recent years have become popular, offering the possibility of investing more safe, with lower costs and good growth opportunities.
Digital franchises are brand licensing that works the same as a physical franchise but on the Internet; in these the franchisee buys the rights to certain geographic areas and obtains profits from mobile and web e-commerce within its marked territory. You also have the rights to leverage the brand and have the back-end systems , as well as training and customer support from the parent or franchisor company.
This type of entrepreneurship has become one of the most profitable investment businesses in the last year, especially in Europe, although in Colombia it is a relatively new concept. If you are thinking of entering the world of digital franchises, it is essential to know a little more about them to ensure that the brand fits your profile, expectations and needs.
What are the advantages of a digital franchise?
Different types of industries can benefit from taking the approach of a digital franchise. This model is ideal for:
- International representation allows accelerating the growth of the franchise, improving the competitiveness and positioning of the brand.
- The training provided by the franchise allows continuous learning, as well as the certification of the quality of the work delivered under the name of a brand with recognition and presence in other parts of the world.
- By not requiring a physical establishment for its operation, investment costs are usually lower than with other types of franchises.
- Possibility of undertaking without having to start from scratch.
- It is a good option for companies looking to expand their market and reduce financial risks.
When is a digital franchise recommended?
Different types of industries can benefit from taking the approach of a digital franchise. This model is ideal for:
- Businesses trying to connect with local consumers like restaurants, mechanics, dry cleaners, and spas , businesses where the people who work don’t have the time or knowledge to focus on connecting with their consumers online or maintaining a digital presence with up-to-date content.
- Secondary and tertiary markets that lack a digital connection with their consumers. This happens in intermediate or small cities that are not usually a main focus for large national competitors and that hire remote sales teams in remote offices.
- Entrepreneurs who understand their local market, where content management and oversight is crucial to user acquisition and retention . A local franchisee has a vested interest in the accuracy and completeness of web and mobile content to deliver relevant and up-to-date information to end users.
How do they communicate with their audiences?
The relationship strategies of each franchise vary according to their nature and location. It is essential that the franchisee knows the local and hyperlocal market to identify potential customers who are within their target audiences, in this way they can reach them with the appropriate language and techniques of the franchisor business.
Successful digital franchises
WSI, Canada
It is a digital services franchise and is the world’s largest Internet consulting firm. It offers thousands of solutions for small and medium-sized businesses and through the use of the patent-pending Lifecycle™ system for Internet Marketing, its franchisees can assess the business needs of their clients in order to deliver marketing strategies focused on generating income.
Entrepreneurs can acquire the license of this brand and start providing digital marketing services to companies and professionals around the world. The company is in charge of giving them the training and the material for the development of the tasks.
Ciudadentumano, Spain
It is a network of low-cost franchises that allows you to have your own app, website and social networks positioned to deliver information and value offers on each city for which it is created. It has a presence in Bolivia, Chile, Colombia, Ecuador, Guatemala, Honduras, Mexico, Nicaragua and Panama, which makes it one of the most successful today.
It has many opportunities for continuous growth since it is focused on specific developments according to geographic location, there can be as many franchises as there are cities in the world.
