Franchise Spotlight: Distribution
Franchisees usually collect and deliver goods to retailers, the hospitality sector, schools or workplaces.
Wholesale distributors buy goods in bulk from manufacturers and sell them at a profit to retailers or commercial customers, whether just domestically or internationally too.
One growing global industry trend that has been in the news is manufacturers bypassing retailers and selling directly to consumers. The direct-to-consumer distribution model has been adopted by the likes of Nike, furniture maker Koala and eyewear manufacturer Bailey Nelson.
Franchise industry analysis
The role of a distribution franchisee usually centers on collecting and delivering goods to retailers, the hospitality sector, schools or workplaces, among others.
The beauty of the franchising model is that the franchisor takes care of much else, from picking and packing goods to invoicing, marketing and market research.
Franchisees will probably need a drivers licence but not necessarily previous experience as a courier or in roles in the distribution sector.
Franchisors tend to look for attributes like drive, enthusiasm, a customer-focused attitude and attention to detail.
Franchisees of Yarra Valley Farms deliver fresh fruit and vegetables sourced from farmers and growers to customers in the hospitality industry.
Starting and finishing their working day early, 20 plus franchisees and 100 support staff fulfill orders for more than 2,000 customers, generating more than $45 million in annual sales, according to the franchisor’s statistics.
Franchisees are assured a minimum $1,500 weekly gross income for the first six months and that the business will be operated as normal in their absence when they take a holiday.
The Original Poster Company, meanwhile, distributes greetings cards and gift wrap to retailers, with franchisees also installing and restocking in-store displays and collecting payment for stock sold.
Delivering goods to workplaces are Books and Gifts Direct, which distributes books, homeware, toys and games, among other items, at heavily discounted prices, and STACKS OF SNACKS, which supplies snack boxes comprising confectionery and other snacks.