Franchise networks: apply negotiated terms across the network

01

The problem starts before the invoice

Network agreements can be lost between national catalogues and local orders. Stores may keep using older prices or miss applicable terms. Headquarters needs to distinguish negotiation quality from actual execution.

The question is not simply where to buy more cheaply. It is which information must come together before deciding, who can confirm the requirement and how to check the outcome after purchasing. Start with a manageable scope, retrieve existing records and make discrepancies discussable with the people who understand operations.

02

An application to develop with Kelqio

Associate terms with eligible stores, check orders and track discrepancies. Consolidate volumes without confusing commitments with actual purchasing.

The approach connects supplier information, catalogues, requests and orders. Each proposal should retain original references, the effective date of the terms used and the decision owner. Buyers can accept a suggestion, correct it or explain why it does not apply. That response becomes useful information for the next transaction.

Savings and success fees

Distinguish observed savings, implementation costs and the fee calculation base.

What the monitoring could look like

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Savings and success fees

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03

What makes a comparison useful

Networks need to identify the entities and transactions covered by each agreement. Terms may depend on time periods, supplier scope or volume levels. Returns and credits can alter the eligible base. Without explicit eligibility rules, savings reports may add amounts not available to every member.

Share the remuneration method with customers before presenting the final result. Retain the baseline, rate, thresholds, exclusions and measurement period in the case file. Once benefits are approved, fees follow from that rule. Kelqio can provide this tracking as software separate from a consultant’s or buying group’s own fees.

04

Bring the right data together

Network agreements, eligibility, catalogues, orders, invoices and store identifiers.

First, check a few lines from end to end. Do references match across sources? Do amounts use the same unit and period? Are terms still valid? File imports can support this initial review. More automated connections follow once matching is understood and responsibilities are assigned.

Data freshness needs to stay visible. Old stock records, expired rate cards or unapproved documents can make a proposal unusable. Signal missing information and retain the last reliable state rather than presenting an apparently precise calculation based on incompatible inputs.

05

An example to explain the calculation

Take a deliberately simplified example on a comparable purchase line in this scope. For 3,000 units actually ordered, a €40 baseline price and €39 obtained price produce a €3,000 gross difference. If implementation adds €200, the net benefit is €2,800. These figures are fictional and do not estimate the result your organization should expect.

This checks the arithmetic, not the performance of the whole approach. Confirm the unit, period and purchased service, then retain invoices and additional costs. Explain volume reductions, removed services or different quality separately. Benefits only become realized after the corresponding transactions occur.

06

Measure what actually changed

Application of negotiated terms and realized network savings.

Agree the baseline before claiming a benefit. Define scope, eligible volumes, quality, time period and costs required to change the situation. An identified opportunity, an approved decision, an order and an invoiced result are separate steps. Tracking them independently prevents an estimate from becoming a promise.

Cash released from lower inventory and staff time saved create value, but are not automatically recurring cash savings of the same amount. If outcome-based fees are appropriate, agree their calculation base. Subscriptions or fixed fees may better suit risk prevention and avoided costs that are difficult to verify.

07

Conditions for a useful result

Members may have specific terms. Check eligibility and effective dates before applying network prices.

Approval should match the consequence of the decision. A different pack size does not require the same review as a new critical reference. Teams need access to the explanation, documents and person who accepted the change. This traceability also supports disputes and rule corrections without removing history.

08

Start with a real case

Choose a category, site or contract where the problem can be observed. Gather sample orders, applicable terms and available outcome evidence. The first exercise should cover the whole chain: data, proposal, approval, action and measurement.

Then compare processing time, matching quality and verifiable results. Errors and rejected proposals matter as much as gains: they reveal missing information or constraints. Expand once owners have a method they understand and can use routinely.