Purchasing Power. Does the franchisor use the collective buying power of the total system to get discounts on supplies and inventory beyond what an independent operator could achieve? This factor is one of the biggest advantages of joining a well-run franchise systemand should offset much of the upfront fees associated with being a franchisee. Make sure to ask for specific examples, pro or con, in terms of the franchisor’s attempt to leverage this franchise system advantage.
At Joey’s Franchise Group, our collective purchasing power comes from vertically integrating our whole system. Our in-house purchasing team not only buys for our system but leverages our buying for other sources as well. This means we’re not just buying products for our system from our vendors but that we’re buying for multiple customers from our vendors. Buy more, pay less.
We’ve also integrated our printing, marketing and development requirements, lowering the standards costs our franchise partners pay for our core services.
Rob Hilditch – VP of Business Development
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