Corporate chains have a great deal of power in dealings with their suppliers because of their economic power in the marketplace. These are retailer-sponsored groups formed by independent retailers that cooperate on promotions while running their individual stores separately. These are wholesaler-sponsored groups that may contract with independent retailers to standardize common operating procedures, storefronts, names, and joint promotions. Here a franchisor develops a good marketing strategy and the retail franchise holders carry out the strategy in their own units. The franchisor usually offers training and management support while the franchisees run the individual stores.
Some chains have buy-back clauses to ensure that the quality of each store can be maintained.