Genrally in these companies, stores work on three formats,
CoFo: Company owned franchisee operated: – Here Inventory is owned by the company and store staff etc is managed by franchisee. (Certain International Brands run on this format)
FoFo: Franchisee Owned Franchisee Operated:- Here, inventory is sold to the franchisee, and you have fixed days to collect the trade receivables. Of course, you will have a deposit covering almost 70-90% of the average inventory cost.(ABFRL & Jockey are predominantly this)
FoCo: Franchisee Owned Company Operated: Here inventory is owned by the franchisee and store staff etc is operated thorugh the company. (More prevelant in restuarants and jewellery stores.)
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