Dent-a-Medical has franchised out its dental clinic in Wroclaw. Under the agreement, the listed firm will receive at least PLN 720,000 (€185,000) in an annual fee plus a variable fee tied to revenue. The arrangement is to be replicated at its other clinic in Warsaw. Although the impact will be negative on the revenue side, it will greatly improve the company’s profitability, slashing its cost base by several million zlotys. As a result, Dent-a-Medical could move into profitability earlier than planned, possibly before the end of the year.
Dent-a-Medical aims to consolidate the Polish dental care market by building up a nationwide franchise network. So far it has signed eleven partners. (See also the news item ‘Dent-a-Medical to partner with insurance firm, foreign dental care provider’).
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