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Independent Purchasing Cooperative

Purchasing

IPC’s primary role is to negotiate the lowest cost for purchased goods and services, including food, produce, packaging items and equipment. IPC’s purchasing professionals are focused on finding and returning the best value to the franchisees through effective negotiation and supply chain management.

IPC’s primary role is to negotiate the lowest cost for purchased goods and services, including food, produce and packaging items on behalf of SUBWAY® franchisees. IPC’s purchasing professionals are focused on finding and returning the best value to the franchisees through effective negotiation and supply chain management. Furthermore, IPC strives to continually expand its role in negotiating contracts where IPC can add value. Working with FWH Research and Development (R&D), SUBWAY® franchisees and suppliers, IPC looks to eliminate non-value added costs in the supply chain. This is accomplished by creating a competitive atmosphere, assuring consistent quality andservice, efficient logistics, commodity risk management and strategic planning.

Produce

Food safety and quality is a top priority for IPC. Hence, IPC adheres to FWH’s stringent Gold Standard Specifications and FWH’s requirement that all SUBWAY® restaurants carry only SUBWAY® Gold Standard produce. Moreover, IPC works closely with FWH to ensure continual improvement to food safety and quality on behalf of franchisees.

Food safety and quality is a top priority for IPC. Currently, produce is ranked second only to seafood in the number of food-borne illness outbreaks (with poultry being ranked third, beef as fourth and eggs as fifth, respectively). Hence, IPC adheres to FWH’s stringent Gold Standard Specifications and DAI’s requirement that all SUBWAY® restaurants carry only SUBWAY® Gold Standard produce. Moreover, IPC works closely with FWH to ensure continual improvement to food safety and quality on behalf of SUBWAY® franchisees.

Quality

IPC’s role is to assure product consistency and quality by purchasing to the Gold Standard Specifications established by FWH for every food and packaging item in the SUBWAY ® system. Moreover, IPC assists FWH in ensuring specifications are consistently met.

Food quality and safety are of the utmost priority at IPC. In addition to purchasing to the Gold Standards established by FWH for every food and packaging item in the SUBWAY® system, IPC also works collaboratively with FWH to ensure that these product consistency and quality specifications are consistently met. An expansive, three-pronged approach is taken to ensure the highest food quality and safety standards – all with a view to protect the SUBWAY® system and brand. At the forefront of IPC’s food quality and safety initiatives are the preventative and continuous improvement projects spearheaded by the IPC and FWH joint committee known as the Office of Food Safety and Quality Enhancement (OFSQE). Meanwhile, IPC continues the day-to-day tracking and measuring of SUBWAY® food quality through QUALITYnet. Lastly, IPC utilizes iCiX, an on-line industry network to consolidate and ensure the maintenance of all vendor documentation.

Equipment

IPC identifies suppliers and negotiates contracts that meet stringent SUBWAY® Gold Standards at the lowest possible price for equipment, small wares, furniture, lighting and all the tools necessary to operate a profitable SUBWAY® restaurant.

IPC constantly reviews supplier contracts and works closely with FWH to ensure that SUBWAY® franchisees have the best price available for equipment, smallwares, furniture, lighting and other restaurant equipment necessary to operate a profitable SUBWAY® restaurant. Efficient, reliable equipment at an economical price provides our franchisees with the means necessary to remain competitive in the QSR industry today. Franchisees tell us they want more than the assurance of competitive prices. Rather, they want improvements to their equipment packages including quality that will hold up to today’s standards, and to be able to open restaurants more quickly and with less downtime. Thus, IPC’s goal is to improve quality and to make continuous process improvements to ensure SUBWAY® restaurants retain their competitive advantage.

Services

IPC is able to leverage the buying power of the entire SUBWAY® system to save franchisees money and to make services available that were otherwise not accessible by individual franchisees. From facilities services, to labor law compliance and in-restaurant music, IPC negotiates discounts for its members and continues to seek out opportunities for further savings on services in the future.

IPC’s primary role is to negotiate the lowest cost for purchased goods on behalf of SUBWAY® franchisees. In 2006, IPC identified the opportunity to expand its role and to add greater value in the area of services. In the past, SUBWAY® franchisees, negotiated with third party providers to deliver services or to perform necessary tasks in their restaurants. These contracts were left to be negotiated by local franchisee groups or, often times, by the individual franchisees themselves. Now, IPC is able to leverage the buying power of the entire SUBWAY® system to save franchisees money and to make services available that were otherwise not accessible by individual franchisees.

SUBWAY® Card / VPS

IPC is constantly striving to provide SUBWAY® franchisees with innovative ways to help them stay a step ahead of the competition as well as significantly increase their profits. As part of this effort, IPC and FWH have created the SUBWAY® Card Program, an electronic stored-value or “gift” card program.

IPC is constantly striving to provide SUBWAY® franchisees with innovative ways to help them stay a step ahead of the competition as well as significantly increase their profits. As part of this effort, the SUBWAY® Card Program, an electronic stored-value or “gift” card program was created to drive franchisee profitability.

Distribution & Logistics

Foodservice distribution is a key component within the SUBWAY® supply chain. Therefore, IPC has put forth tremendous effort to develop a SUBWAY® distribution program that is geared towards meeting the needs of SUBWAY® franchisees, improving distribution related service and reducing overall supply chain cost.

Foodservice distribution and logistics is a key component within the SUBWAY® supply chain. Therefore, IPC has put forth tremendous effort to develop a SUBWAY® distribution and logistics program that is geared towards:
• Meeting the needs of SUBWAY® franchisees
• Improving distribution related service
• Reducing overall supply chain cost.

Technology

Information technology is critical to the success of IPC to accomplish its mission of driving profitability for SUBWAY® franchisees. IPC's cornerstone of technology is IPCnet and QUALITYnet which have received several industry accolades.

Technology is critical to accomplishing IPC’s mission of driving savings and profitability for SUBWAY® franchisees. IPC's cornerstone of technology is IPCnet and QUALITYnet which have received awards for excellence by several organizations, including the CIO 100 Award by CIO magazine, an Edge Award from Hospitality Technology magazine and an Applied Technology Award from QSR magazine. IPC also continues to collaborate with SUBWAY® system stakeholders to increase franchisees’ competitive advantage, enhance in-restaurant efficiencies and reduce costs through system-wide technology innovation. Best-in-class technology, world-class architecture and applications, and highly seasoned development teams combine to meet the SUBWAY® system’s unique and complex technology needs in the areas of POS software and hardware.

Membership

As a SUBWAY® franchisee, you are automatically a member of IPC and qualify to vote for your representation on the Board of Directors and to participate in the patronage dividend system. IPC pays an annual dividend to all SUBWAY® franchisees in December of each year.

As a SUBWAY® franchisee, you are automatically a member of IPC and enjoy benefits which include:
• Qualification to vote on all membership issues.
• Participation in the patronage dividend system.

IPC pays an annual dividend to all SUBWAY® franchisees in December of each year. The patronage dividends are issued in the name of the franchisee(s) of record on August 31 of each year as reported to IPC by FWH. Dividend checks are not divided or prorated if the store is sold during the IPC fiscal year (September 1 of the previous year through August 31 of the current year). The amount of the dividend per store is based in part on each store’s total purchases from their authorized Distribution Centers (DC’s) duringIPC’s fiscal year.

Communication

A key priority for IPC is to keep SUBWAY® franchisees informed of our initiatives and accomplishments. Our goal is to provide SUBWAY® franchisees with all the information necessary to maintain their competitive advantage and to run their businesses successfully.

A key priority for IPC is to keep SUBWAY® franchisees informed of our business initiatives and accomplishments. Moreover, IPC strives to constantly improve our communication methods through the development and management of various communication tools. Our goal is to provide SUBWAY® franchisees with the information necessary to maintain their competitive advantage and to run their businesses successfully.


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