{"id":36300,"date":"2021-04-06T15:06:40","date_gmt":"2021-04-06T19:06:40","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=36300"},"modified":"2021-04-20T14:32:59","modified_gmt":"2021-04-20T18:32:59","slug":"cybersecurity-threats-franchising","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/cybersecurity-threats-franchising","title":{"rendered":"Why Cybersecurity Threats In Franchising Are A Very Real Concern in 2021"},"content":{"rendered":"\n
\"cybersecurity
Cyber Attack Online with Hacker Accessing Stolen Data<\/figcaption><\/figure>\n\n\n

(Guest post on Cybersecurity Threats In Franchising)<\/em><\/p>\n

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Cybersecurity For Franchise Organizations<\/h2>\n\n\n\n

According to IBM<\/a><\/strong>, it takes an average of 280 days to identify and contain a data breach which can result in financial losses of up to $3.86 million, on average. As cybersecurity risks grow in complexity and sophistication, more and more organizations will be exposed to cybersecurity threats.<\/p>\n\n\n\n

And this is especially true as companies continue to increase their digital presence and e-commerce capabilities to keep up with a rapidly evolving technological landscape.<\/p>\n\n\n\n

In franchising<\/a><\/strong>, cybersecurity is a very real concern. Data breaches in franchised networks have been on the rise in recent years. The impacts of which affect not only a corporation\u2019s bottom line but impact its operations and compliance in the short term.<\/p>\n\n\n\n

Besides, simply not having a comprehensive data security system in place \u2013 regardless of whether there\u2019s a breach or not \u2013 can result in hefty liabilities. Furthermore, the reputation cost of breaches can result in lost business.<\/p>\n\n\n\n

After all, franchise systems<\/a><\/strong> collect vast amounts of data on franchise owners, current and prospective employees, as well as clients and customers. In the modern world, data is king, and the effective use of data is synonymous with success.<\/p>\n\n\n\n

As a result, many corporations collect data not only to identify operational inefficiencies but also to improve quality of service, better target their marketing campaigns. Plus, it improves their business and bottom line.<\/p>\n\n\n\n

That’s why establishing systems to protect valuable data and intellectual property should, therefore, be at the core of every franchise brand.<\/p>\n\n\n

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Cybersecurity Threats In Franchising: Unique Vulnerabilities of Franchise Systems<\/strong><\/h2>\n\n\n\n

Many franchises have hundreds, some even thousands, of locations worldwide, leading to interdependent and interconnected networks between franchisors and franchisees. Franchising is at its core a relationship between franchisors and franchisees characterized by mutual interdependence.<\/p>\n\n\n\n

Although they are different companies, they share entangled domains of trust and risk creating unique vulnerabilities. Each party relies on the other to do its part in protecting data and information systems. If one franchisee is not secure, then the entire franchise is not secure. For this reason, franchises need a comprehensive, centrally managed cybersecurity framework<\/a><\/strong> that covers every tier of the organization.<\/p>\n\n\n

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Cyber Vulnerabilities Common to Franchise Systems<\/strong><\/strong><\/h2>\n\n\n\n

As mentioned, franchise networks handle large volumes of data and customer information on the daily. The technology systems franchisors use to collect and analyze data are intrinsically linked to their franchisees’ systems. <\/p>\n\n\n\n

For instance, customer credit card information, sales tracking, and royalty payments, among others, originate from franchisee networks. As a result, a franchise system is vulnerable from multiple entry points – each franchisee\u2019s office, computer terminal, or POS is a cyber-vulnerability. Can you see why cybersecurity threats in franchising are so serious?<\/p>\n\n\n\n

Franchisors tend to view cyber vulnerabilities mainly in terms of their POS systems<\/a><\/strong>. The truth is, much more is at issue, as the following realities demonstrate:<\/p>\n\n\n\n