Got approached by someone who owns 6 Subway locations across central Ohio, all on AEP. Bills range from $800-2200/month each. He wants a bulk discount on my fee structure since I'd be auditing all six at once. How do you guys handle multi-location deals like this?
Franchise owner with 6 locations - package deal strategy?
I usually offer a small break on the percentage for bundled accounts, maybe drop from 50% to 45% of recoveries. The real benefit is efficiency - similar usage patterns, same utility, economies of scale on the analysis. Just make sure each location has a separate contract in case he sells one.
Watch out for cross-subsidization issues with franchise operations. Sometimes corporate has negotiated special rates that individual franchisees don't qualify for. Also seen cases where the franchisor is supposed to handle utility setup but screws up the rate applications.
Good point on the separate contracts. Found issues at 3 of the 6 locations - two were on small general service instead of large, one had an old seasonal adjustment that should have expired. Total recovery around $18K spread across the three. Owner was thrilled.