Soft or hard franchise? Why changing the model alone won`t improve store execution
The debate over which franchise model is more effective has been ongoing in the retail industry for years. Facing increasing market pressure, many traditional networks are deciding to tighten their cooperation rules. The goal is to achieve greater visual consistency, a unified assortment, and more effective promo execution.
However, simply changing the clauses in a contract does not fix operational processes. The real challenge lies in how the network manages the flow of information between headquarters and points of sale.
Soft franchise: freedom at the expense of visibility
The soft model relies on a high degree of partner independence. Reporting is kept to a minimum, and audits take the form of infrequent, informal visits.
The advantage is high trust and low barriers to entry. The operational problem, however, is that headquarters often operates somewhat blindly. Decisions regarding promotional campaigns or the introduction of new standards are based on historical sales data, rather than an accurate understanding of what the shelf and display actually look like in a specific store. The lack of real-time field data delays the response to errors.
Hard franchise: standards that easily turn into bureaucracy
Transitioning to a hard model promises full standardization. Headquarters gains control over the store layout, product placement, and customer service.
In practice, tightening franchise rules often results in a drastic increase in the number of inspections. Franchisees are overwhelmed with new guidelines, and auditors spend hours filling out lengthy checklists. When the information from an audit is used merely to assign a grade, partners begin to view the system as police oversight. Reporting becomes an end in itself, rather than a tool for solving problems.
Information that builds support
The key to success is not choosing one extreme over the other, but rather smartly managing the collected data. At cHow, we believe that better execution in a hard franchise does not have to mean burdensome bureaucracy for the stores.
If we relieve auditors of the need to manually retype data from notebooks into spreadsheets, and connect the verification process directly to specific actions, the dynamic of the relationship changes.
When a coordinator using cHow flags a non-compliance—for example, missing POS materials—this information doesn`t end up in a dead report. The system automatically routes a task to the appropriate department so that the shortages are replenished as quickly as possible.
As a result, the franchisee sees that the audit is not about pointing fingers, but about providing tangible support for their business. Headquarters gains an up-to-date picture of the situation, and the point of sale receives prompt assistance.
Ultimately, regardless of the chosen model, true value is built when the collected information turns into a decision and action.
Read more See all
The trap of the "tick-box" audit. Why merely collecting store data doesn`t solve operational problems
Collecting field data has never been easier. Store employees, merchandisers, and auditors are equipped with smartphones; they take thousands of photos and check off digital checklists. And yet, despite this technological ease, operational problems in many organizations remain unresolved for weeks on end.
Read article
Profitability of Retail Execution implementation - a process-based approach
The implementation of a Retail Execution system does not start with a spreadsheet or declared savings. The starting point is always an understanding of actual operational processes - how the organization operates in the field, how it collects information from the sales network, and what really happens to that data afterward.
Read article
The Algorithmic Illusion of Objectivity. On the Subjective Nature of Data.
Trust in reports typically grows in proportion to the sophistication of the technology processing them. It is an interesting correlation, yet it carries a distinct risk. Focusing on the analytical capabilities of systems can easily obscure the nature of the data itself. Before data takes the form of a digital chart, it usually starts as a record of human interpretation. Therefore, assuming its total neutrality is risky at best.
Read article
Reporting: Control or Support?
New systems and applications appear in companies on a regular basis. Some rollouts go almost unnoticed – employees simply get used to something new – while others trigger strong emotions. The latter often include applications designed for reporting day-to-day events.
Read article
Question Categories – Better Data, Smarter Insights
When you're managing multiple retail locations, a good audit report should clearly show what’s working, what needs improvement, and exactly where the problem lies.
Read article
“Mini-task Bundles" – How cHow Transforms Post-Audit Workflows
Auditing and inspections are one thing, but what happens afterward? Too often, it’s chaos: scattered messages, inefficient spreadsheets, uncertainty about who does what and when. That’s where our Mini-task Bundles—automatically generated follow-up tasks—fully shine. They help transition from problem identification to resolution with ease.
Read article
cHow for Health & Safety teams
In large production plants and distribution centers, each day brings hundreds of decisions and observations—many of which never reach the system simply because there’s no time, no place, no process. Yet effective health and safety is not just about procedures. It’s about what we really know—and what we do with that knowledge.
Read article
Observe. Document. Respond.
Using cHow in security agencies. Much of a security agency’s work happens out of sight. Field presence doesn’t always mean oversight – especially when patrol, technical, and admin teams operate across multiple sites. Sometimes it's a minor malfunction, sometimes an incident requiring documentation – and often, it's just about knowing whether everything went according to plan.
Read article
cHow helps prevent accidents
Ensure a safe workplace with cHow's Health and Safety module - a tool that streamlines hazard reporting, speeds up incident response and helps build a culture of safety in your organisation.
Read article
Data well served
It's incredible how much data we're generating these days, isn't it? Just a few years ago, we couldn't even imagine the amount we're producing now. For businesses, it's not just about collecting data anymore. The key is to process it instantly and efficiently. Being able to turn raw data into useful information that helps us make decisions is really important for the efficiency of an organisation's operations.
Read article
The internationalisation of communication - a new challenge for businesses of all sizes
In today's globalised world, it's becoming more and more challenging for companies, both multinational and local, to communicate effectively in multiple languages. The lovely folks over at the Central Statistical Office (CSO) let us know that by the end of May 2024, there were more than 1.02 million foreigners working in Poland, which is 6.7% of the total workforce. It's a common misconception that English is enough for international communication. In reality, though, having a grasp of the local language is really important, especially in sectors like retail and services.
Read article
From "I think so" to "I know"
At one end of the process, there are hundreds, thousands of small pieces of information. At the other end of the process, there are decisions that are often crucial to the organization. It is not good when there is no clear connection between these points. Unfortunately, this is the case.
Read article
Who do you think knows the most, and has the best contacts?
"I'm really looking forward to getting to know him and working together with my team of field auditors to make the most of our combined skills," wrote the Senior Internal Auditor of one of the largest FMCG distributors. About whom? About the amazing cHow app in the flesh!
Read article
The decision to implement a new system = cause for celebration
It is often assumed that the decision to implement a system will be met with enthusiasm by all customers. However, in reality, some customers may feel sceptical or even distanced from the idea.
Read article
"Healthy store" - managing the sales network in a pandemic times
Adapt your network to the new reality and be ready for the next changes! Build "healthy stores" with cHow - stores, where employees and customers will feel safe.
Read article
"Managing a field team is not an easy job"
On how to make this task simpler and where exactly lies the challenge, we talk to the Director of Operations at Monnari Trade, Piotr Olczyk.
Read article
"Meet agile reporting – decide without guessing"
You’re wasting hours looking for data in emails and tables just to find out that the situation in you retail chain might be.
Read articleContact us
Show demo
cHow
Królewska 2/2, 30-045 Kraków
Trusted us
