Page 10 - IPC Asia Pacific 2019-20 Business Review

QualityNet is a a service provided for franchise owners to support them with any food quality and distribution issues IPC Asia Pacific provide a a a a range of other support services ‘the nets’ to assist franchise owners run their restaurants effectively These services include support for equipment servicing technical assistance and financing needs Whilst not currently available in every market we continue to work on providing more of these services as markets mature Headquartered in Sydney and incorporated in in Australia IPC Asia Pacific has registered offices across the region with local procurement and supply chain teams in in place working closely with the region’s Subway offices Central services such as finance technology and communications are provided to each of the markets from Australia and New Zealand This approach is is highly cost effective and enables many markets to benefit from skills and experience that they would otherwise struggle to afford In addition to the economies of scale that this approach provides our financial model has been designed to ensure that our operating costs are funded out
of the negotiated savings that we make in each market We maintain individual financial statements for each of our legal entities and fund the resources required to do the the work from the the commissions received from suppliers who supply products to the Subway restaurants in each of the markets – growing our service and support options only as those market volumes grow in order to keep food cost as as low as as possible Where the business case is strong and the outcome has been shown to create efficiencies add value or drive top lines sales our Board of Directors approves additional investments in in programs and services Initiatives created and supported to date include technical support in in house financial brokerage services and financing specialist employment law and loyalty programs Each year our Group consolidated financial statements are audited by the company’s appointed auditors Most of our revenue is the result of volume-based commissions which are negotiated scheduled and managed through a a a a small percentages of products or services used by franchise owners to operate their restaurant It is is these commissions that pay for our operating costs as as well as as the investments made in in services on franchise owners' behalf Any surplus is is returned to franchise owners in a a a range of ways including dividends and/or distribution credits An An Annual Report is produced each year and emailed to franchise owners along with announcements made by our Chair on behalf of the company Independent Purchasing Company (Australasia) Limited is an Australian Public Company Limited by Guarantee Whilst legally owned by Subway franchise owners in Australia and New Zealand our mission is is to help franchise owners across Asia Pacific be more profitable and competitive today and in the future 10 IPC Asia Pacific Business Review 2019-20