How franchisees can benefit massively from the franchisor’s supply chain.

Are you starting your own business? An unfamiliar system can be confusing and stressful. The purpose of this blog is to introduce you to the workings of a franchising system and the benefits it provides through its supply chain management. A franchisor adds massive value in lowering your cost, let’s take you through the journey of how.

Cost-Saving

Supply chain management is fundamental to any franchising system, and a streamlined supply network can offer enormous value to the franchisees. Cost reduction is one key area where a franchisor delivers this benefit. By utilizing their power, a franchisor procures raw materials at more affordable prices. It is difficult for an individual to permanently secure a supplier who delivers quality materials at cheaper rates. However, with the buying power, a franchisor can get preferential terms for franchisees on sourcing raw materials throughout the year. Furthermore, the franchisor’s expertise in minimizing manufacturing costs, equipment costs, and transportation costs results in considerable savings for the franchisees, who can take advantage of the cost-effectiveness transmitted from the franchisor while still enjoying independence as entrepreneurs.

• Rent savings
• Savings on Staff Cost
• Saving on staff cost
• Savings on equipment
• Less wastage

Quality Control

To ensure consistency in taste, appearance, and quality across all franchise locations, a franchisor closely monitors its supply chain management, which involves procuring raw materials and delivering them to all franchise locations. The franchisor sets strict standards for the quality of raw materials and establishes partnerships with specific suppliers to maintain consistency. Regular maintenance schedules for machines are also put in place, with technicians on hand to address any issues promptly. By consistently producing high-quality products, a franchisor helps franchisees establish a reputation for excellence that can increase customer loyalty and sales.

A franchisor ensures that its supply chain management is performing to its full potential, which prevents food-borne illnesses, contamination, and potential outbreaks. This leads to consistently high-quality products, providing abundant raw materials for the franchisees. A franchisor also relies heavily on modern technology, such as IQF freezers, which increase the shelf life of products using state-of-the-art technology and avoid the usage of preservatives.

As a result, the franchisees benefit from cost savings, quality control, and modern technology.