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How franchisees can put your brand at risk
Mishandling customer information could make you the next newspaper headline
Franchising is widespread in industries like real estate, automotive, food and retail, and offers a range of potential benefits and synergies for both the franchisee and franchisor. Technology transformation and disruption has meant that many of these sectors increasingly collect customer data in order to deliver personalised marketing or cross-sell financial services, yet the disaggregated nature of franchising means that customer data privacy, governance and culture needs increasing attention and oversight.
When your brand’s reputation is what you count on, it is important that you understand your weaknesses. Data breaches are a reality for companies and how incidents are managed is subject to constant criticism by the media and consumers. These risks and consequences to your company’s brand can be mitigated and, in some cases, prevented by franchisors who take the time to check just how their franchisees are putting their customers’ data at risk.
This article will identify:
- The risk that franchisees pose to a brand’s reputation
- The consequences of poor privacy and data protection practices
- The impact of a data breach on a franchisor.
We have also included a checklist for franchisors to conduct a quick assessment to determine if their franchisees are doing what is needed to protect their customer data and in turn their brand.