For Australian brand founders preparing to franchise their business, there is a lot to consider. As operations expand across multiple locations, technology and cybersecurity risks increase significantly. According to the Australian Cyber Security Centre, over 84,000 cybercrime reports were received in a single year, with small businesses experiencing rising average costs per incident, highlighting the importance of addressing technology risk before franchising. Read on to find out more.
How Franchising Changes Your Technology Landscape
First, it is helpful to understand how franchising changes your business’s tech landscape. Franchising inevitably involves increasing the number of users, devices, locations, and systems accessing central business infrastructure. This greatly expands the overall attack surface, which means that cybersecurity must be a top priority.
Data Access & Control Across Franchise Locations
Franchises rely on shared customer data and centralised systems for ease of access, but this can create risks if access permissions are not defined. There may also be inconsistent security practices across different franchisees, which can put the entire brand at risk. This is why there needs to be clear governance around access control in all locations.
Securing Network Access Between Franchisees & Head Office
It is important to protect internal systems while still enabling day-to-day franchise operations across different locations. A VPN for business is a smart solution as it can create a secure connection between franchise locations and head office systems with encrypted network access. This protects data and activity in all locations, helping to prevent unauthorised access and data interception.
Third-Party Software & Local Vendor Exposure
Additional risks are introduced with third-party software and local vendor exposure. For example, point-of-sale systems, booking platforms, and local service providers in each location can introduce new risks. This is particularly true when franchisees are responsible for choosing their own technology vendors, which is why you might want to consider a unified approach for security and consistency across locations.
Setting Technology Standards Before Expansion
Franchisors should define minimum IT and security requirements before onboarding franchisees. This should include key requirements such as device standards, access policies, and incident reporting processes. By setting tech standards before expansion, you can reduce risk as your business grows and create a structured approach to security that will help reduce risk during a time when cybercrime is a growing issue affecting businesses in all industries.
Franchising is an exciting step for Australian brands, but you need to be aware of the risks and challenges in terms of technology and cybersecurity. It is vital to address these risks and challenges before franchising so that you can grow your business in a safe manner and ensure strong security across all franchisee locations. This will give you peace of mind and ensure that your franchising journey creates no security gaps so that you can focus on growth and success.
