Chain Leader

Franchise Developer: Intranet Insights

An intranet system helped Buffalo Wings & Rings grow from six stores in 2005 to 15, with 24 more under construction.

An intranet (an internal, password-protected Web site) can help area or master developers build a sense of community while streamlining time and costs, says Philip Schram, president and CEO of Cincinnati-based Buffalo Wings & Rings. He developed an intranet system called Paljunction that helped revitalize the chain, which he acquired in 2005. “It has created a huge competitive advantage,” he says. Here are his tips for how to get the most from an intranet system:

• Community Building. An online bulletin board lets members quickly get news, learn about new products and pricing, and interact with new franchisees coming on board. “One of our core goals was to develop a feeling of community,” says Schram. Seek input from franchisees on what information they consider useful, and require everyone to log on and check the bulletin board at least once a week, Schram recommends.
• Document Hosting. Keep all the documents needed to operate a franchise unit (operating manual, logos, promotional fliers and customer-satisfaction surveys) on the intranet for downloading by franchisees. “Before, we would get logo requests two or three times a day; now we barely get any,” says Schram.
• Online Payment. Incorporate a secure online EFT (electronic funds transfer) tool to streamline accounting and payments. “If a franchisee needs to calculate royalties and write a check, that takes time,” says Schram. “We have reduced the time we were spending to collect the royalties by 90 percent.” Franchisees also use the intranet to order products from suppliers and perform a weekly review of their P&L statements.
• E-training. Training new employees is often a huge burden on the franchisee. Schram’s unit managers will soon be able to use the intranet. “We’re developing an e-learning center that will be a training tool and quiz-management system,” he says.
• Sourcing an Intranet. You can hire a company to develop an intranet system or develop your own to avoid monthly per-user fees, says Schram, who developed www.paljunction.com from some software he bought on eBay and then refined with an IT-savvy business partner. The total cost of developing the tool over five years was $150,000, he estimates. “Even at twice the price, I would still do it,” he says. “It’s really a tool of growth.”