Franchise businesses come in several shapes and sizes, from company owned and operated to franchise owned and operated and many owner/operator combinations in between. For a franchise business owner (franchisee), the model can be quite appealing, since they’re buying into a brand that is already established and successful, mitigating many of the risks that typically accompany starting a new business. Despite these advantages, franchise businesses come with some complexities when it comes to managing franchisee identity and access.
In franchise models that are “company operated,” employees are considered employees of the brand itself. In the models deemed “franchise operated,” employees are not considered employees of the brand. Rather, they're “non-employees” (also known as third parties), akin to contract workers. While it may seem like a small distinction, this difference in employee status and relationship to the main brand has significant implications for the way these individuals are granted access to a brand’s resources, including sensitive data. The business processes used to identify and manage non-employees are often complex and inefficient. Without the proper identity and access management (IAM) solutions that specifically address third-party identity populations, mismanaged franchise-operated employees can increase the brand’s exposure to cyber risks.