A great example of our hardware support for franchises was with a major nationwide fast food chain. With more than 200 corporate stores and more than 300 franchises, this chain needed a solution for franchisee hardware that gave them their corporate benefits but didn’t place the contract responsibility with the parent company. Corporate stores’ hardware contracts still remain with the corporate account, but each franchisee has its owner’s credit reviewed and arranges the deal with the owner as the credit holder.
Thanks to our hardware support for franchises, this fast food chain was able to get its corporate and franchise stores the same great deals on their enterprise hardware while freeing the corporate store from owning a larger master contract or owning all of the individual franchisee hardware agreements.
Another example of our hardware support for franchises but on a larger scale is FedEx. With more than 3,000 franchises nationwide, the scope of such a hardware initiative was vast. Each franchisee owns its delivery routes, its trucks, and other equipment but historically has relied on the corporate entity for hardware support. And because the hardware needs of each franchisee varies, it was a costly, administrative, and risk-heavy arrangement. River Capital stepped in to support FedEx with the hardware transition.
Prior to working with our company, FedEx purchased the equipment that franchisees needed and charged them a monthly fee for using it. This included handheld scanners, cradle mounts for trucks, and more. Now using River Capital for franchise hardware support, the FedEx corporate office still specifies the hardware options available for its franchisees, but the process for obtaining the hardware has changed.
Just like our first example, FedEx franchisees can utilize corporate benefits and discounts, but each franchise owner must first undergo a credit check and, once approved, is responsible for the contract. When they’re ready to get their hardware, each franchisee visits a specific site that showcases the options corporate has selected. The franchisee places an order, a credit check is conducted, the agreement is finalized, the hardware reseller receives the order and payment, and the hardware is sent to the franchisee. At this point, River Capital begins charging the FedEx franchisee a monthly payment.