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.
Does a franchisor receive commission from suppliers a franchisee is obliged to use?
The majority of franchisors do recommend that franchisees make use of nominated suppliers. This is a ‘win-win’ for both the franchisor and its franchisees because the franchisor can usually negotiate much better terms with suppliers than would be the case if individual franchisees tried to do so. As a result, franchisors are often able to claim that although franchisees have to pay continuing fees, the advantages they receive from discounts offered by nominated suppliers outweighs the ‘downside’ of these payments. The advantage for franchisors is that if franchisees obtain their essential supplies from nominated suppliers the franchisor is in a position to ensure the quality of those supplies is maintained, which is an important element for franchisors who generally do not want there to be substantial variations between the quality of products or equipment supplied or used by franchisees. The important thing is that franchisees are able to obtain items more cheaply through the franchisor, or its nominated suppliers, than they would be able to do so otherwise, and in such circumstances some franchisors do receive some sort of payment or discount from suppliers. The only difficulty arises where the franchisor is not transparent and has not informed its franchisees that it is receiving a payment.
You might also be interested in
Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Answered by John Pratt
John Pratt writes: It is simply not possible to refer to taking a franchise as an “investment”,... read more
Answered by Louise Harris
Louise Harris writes: It’s quite a lot like choosing a life partner. You need to be interested... read more
Answered by Shelley Nadler
Shelley Nadler writes: Franchise law is a specialist area and it may not be something that your... read more
Exciting Franchise Opportunities
Companies to Consider
Fixed sites can earn up to £16,000 per month with profit margins of 65%
From £18-20,000 per week. First year R.O.I 40%
Third party through banks
£12,000 weekly revenue, 25% net profit
I Am Döner
£10,000+VAT turnover per week, 20% EBITDA profit
In house and high street banks
Canopy Children’s Nurseries
Operational breakeven in the first month of trading and return on capital investment from approx.18 months
Fun Fest for Children
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 3 years ago | 2 min read
Added 18 hours ago | 2 min read
Added 2 days ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news