The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Close
Does a franchisor get commission from suppliers to the franchisee network?
One of the advantages of being part of a franchised network is that franchisees ought to be able to purchase goods or services at a far better rate than they would as a sole operator. The franchisor usually negotiates the special price and may then arrange for each franchisee to deal directly with the supplier, or he may purchase items centrally and pass them on in smaller quantities to the franchisees. If the franchisor buys and re-sells the goods in question he is likely to make a mark-up, if only to cover handling costs. Where franchisees order individually, the franchisor has the choice of whether to pass on the entire benefit of his negotiations to the franchisees or to accept a commission, or retrospective discount, from the supplier. There is no reason why a franchisor should not do the latter, provided he is open about such arrangements. We have at least one client who puts all the commissions he receives into a fund that pays for a large proportion of the cost of the annual franchisee conference, which seems to me to be an excellent idea.
You might also be interested in

Answered by Alan Wilkinson
Alan Wilkinson writes: The short answer is no. The interesting bit is why a franchisee should actually... read more

Answered by Louise Harris
Louise Harris writes: This question is one that many have explored and much has been written on... read more

Answered by John Pratt
John Pratt writes: Virtually all franchise agreements are granted for a specific term and either contain an... read more

Answered by Shelley Nadler
Shelley Nadler writes: The answer to this will really depend on the reason your franchise is not... read more
Exciting Franchise Opportunities
Start your own Not Just Travel franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Not Just Travel for further information!

Start your own Schmidt Kitchens franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to Schmidt Kitchens for further information!

Start your own Wendy’s franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to Wendy’s for further information!

Start your own Stencil-Tech franchise
Yes
Find Out MoreDiscussed at information disclosure...

Request Free Information
Send a free enquiry to Stencil-Tech for further information!

Start your own InXpress franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to InXpress for further information!
Companies to Consider

Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
Brexit property investment myths BUSTED!
Added 3 years ago | 2 min read
-
“We’ve found new ways to support all of the franchising industry”
Added 14 hours ago | 2 min read
-
5 greatest lessons we’ve learnt from COVID
Added 2 days ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Over 50k
If budget is not an issue, then don't miss these.
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
What Franchise Newsletter
Keep up to date with all the industry news