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Article: Power selling for franchise systems: national account programs. (Spotlight: Piper Rudnick LLP: Advertisement).
- Article from:
- Franchising World
- Article date:
- February 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 International Franchise Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Buyers of products and services with multiple locations frequently have a strong preference to purchase under a single contract. This enables the buyer to utilize its purchasing resources efficiently--it is able to negotiate with and pay a single supplier, thereby reducing transaction costs and enabling it to address problems with a single party. In addition, a single contract enables the buyer to derive the volume pricing that would not be available if the individual locations functioned as separate purchasing entities.
Until recently, franchisors have been at a disadvantage vis-a-vis non-franchised suppliers in obtaining such multi-location, or "national," ...