Morrisons is in the advanced stages of selecting a preferred EPoS provider for its Daily franchisees, with firms MSP, TLM Technologies and CBE understood to be in the running.

Sources close to the process confirmed the latest stage of selection was completed at the end of March, with the three companies asked to submit proposals to the multiple. One source added that the chosen provider could be one, or a combination of the three.

They added: “Morrisons wants to build a franchise model in competition with One Stop. Currently they allow franchisees to select their EPoS firm. Morrisons has asked for proposals from three suppliers, which will go to a final round of negotiations to ask how they want to carry out the business.

“One option could be a choice of either of the three providers for franchisees, while selecting one preferred provider would offer preferential rates to franchisees. The process comes down to recommendations from retailers and how relationships are managed.

“Morrisons has plans to open thousands of Daily franchisees. They want to see how the chosen EPoS provider would approach the market, get something agreed and move forward.”

Each of the shortlisted firms already has experience working with retailers, with their systems installed in unaffiliated and major symbol groups.

Asked to comment on the process, a Morrisons spokesperson said: “We can confirm that we are talking to a number of suppliers regarding an EPoS contract but won’t be confirming the names of who they are at this stage. The aim of the project is to ensure the best service to our retail partners, provide good value and improve functionality for our franchisees.

“We haven’t made any decisions yet but we expect to conclude negotiations later this year.”

TLM Technologies was unable to confirm or deny that it was in the application process, while MSP declined to comment. CBE has been approached for comment.