An effective method is to leverage agreements with suppliers to guarantee franchisees products at market prices or slightly below. This approach not only promotes economies of scale, but allows the parent company to obtain a small commission or credit note, which represents an indirect source of income.
Outsourcing and centralization
In the case of differentiating products or services, the parent 99 acres data company may decide to produce some components internally or to delegate the processing to external suppliers. For example, it is common in the clothing industry to create unique semi-finished products (such as customized fabrics) to distinguish the brand.
However, it is essential to avoid excessive logistics costs or the creation of centralized laboratories if there are not the production volumes necessary to cover the costs. Economic sustainability must be guaranteed already with internal consumption before involving franchises .
Supplies at market prices or slightly lower
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