Technological advances leave their mark on every aspect of our lives, and the franchise system is not immune to its effects. Advances in computers, telecommunication, and internet influences have helped to increase the internationalization of franchising, and change the course for the future of this business partnership. Whether positive or negative, the impact has left its mark.

Positive effects of technological innovations on the franchise business are numerous. The internet has enabled businesses to develop sales globally. The number and size of internet-related franchises are multiplying rapidly, and new types of franchises are being developed. The new categories of franchised businesses have been created in response to various niche markets that have formed online, resulting in added franchise opportunities.

A growing amount of franchise businesses are taking the initiative to add internet sales to their operation. The internet is a new way to reach new customers, interact with existing customers, and sell products and services online. It is a convenience that many customers enjoy, and have come to expect from most companies.

An increasing trend in many franchises is the move toward collaborative unions with other businesses. International convergence is a projected outcome resulting from the boom in e-commerce. These arrangements are opportunities to effectively compete online by joining forces with complementary product/service providers.

While the internet provides businesses the opportunity to develop sales globally, there are some negative results of the increased technology. One is the conflicts created between the franchisor and franchisee, as a result of website disputes. Many times, franchisors want full ownership and authority on internet developments, and do not want franchisees to start their own websites. There are also disagreements regarding internet sales and revenue. Company website sales may compete with a franchisee, by targeting and selling to customers within their territory. Franchisors keep the profits of the sales, which makes franchisees feel that their franchise value has been diminished, and their customer base within their promised territory violated.

Additional issues that have arisen from internet involvement are the effects on retail establishments. With the increased customer traffic and growing sales of internet retailers, both retail establishments and service providers alike are noticing the impact of e-commerce. The internet’s effect has made it more challenging for a business owner to conduct business from a store front alone.

Although the traditional way of doing business may change, the current outlook for the future of franchise opportunities looks positive. The introduction of ever-changing technological advances may require franchisors and franchisees to develop new approaches to marketing their good and services, but will also give way to greater access to customers, increased sales options, and collaborative partnerships.