A Franchisor Supply Chain & Its Benefits
It’s natural to have doubts when you are unaccustomed to how a franchising system runs. Let’s make you aware of how a franchising system works and its supply chain benefits.
1. Optimal supply chain management
If you are an individual business owner, you know the struggle of bargaining. There is no consistency when it comes to opting for a permanent supplier who would agree on cheaper rates for your raw materials with good quality. With the franchising system, this is never an issue. A Franchisee, all thanks to its Franchisor, enjoy preferential rates on sourcing all year long. The bulk raw materials get supplied to the franchisee without any compromise on the quality. Franchisors add tremendous value to improve quality thanks to optimal supply chain management where in- the ability to store large volumes of raw material in cold rooms is done using modern technology. These rooms can process raw materials – for example, potatoes – for an entire year’s usage. The franchisor also helps the franchisee with its ability to invest in large manufacturing units to process raw materials into ready-to-use products making the most out of the supply chain management.
A large number of production makes it difficult for an individual business owner to maintain the hygiene factor. With no supply chain management, an individual business owner faces its non-hygienic doom faster than one can anticipate. In a franchising business, the franchisor ensures that the supply chain management is performing to its full potential. It helps in preventing food-borne illnesses, contamination, and potential outbreaks. It also ensures that sustainable and certified practices are in place to satisfy hygiene and health-conscious consumers.
3. Utilisation Of Technology
For individual business owners, confined space restricts them to make a shift from old technology to modern. As for the franchisees, the franchisor’s entire business relies on the usage of modern technology.
Technology like IQF freezers increases the shelf life of products using state-of-the-art technology, avoiding the usage of preservatives. It can store the material at minus18 degrees celsius.
The ‘Freezer to Frier’ technology allows stores to fry one patty at a time; after receiving the order from the customers. Each product piping hot is served to the customers. The franchisor also uses assembly technology instead of needing specialised chefs to deliver standardised taste, 365 days a year.
Even after all the technology costs involved, the final product that lands at the store are 15-20 per cent less if compared to what the individual business owner would have incurred had they tried to make the product on their own. The franchisors bet on the strength of massive volumes to improve supply chain management. It includes the utilisation of technology to improve demand forecasts, purchase compliance and the ability to weather unexpected storms.
Talking about all these benefits has brought us to an important question- Will you start as an individual business owner, or will you join hands with the most rewarding business- the franchising business?
If you are keen towards the latter one, let us inform you that India’s Largest Homegrown QSR Burger Chain, Jumboking is looking for an enthusiast like you. All you need to do is click on the link below, and soon Jumboking’s franchise will be yours.
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