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
How are online sales managed across a franchise network?
Shelley Nadler writes:
Franchisees often operate their own websites for online sales, either as a page on the franchisor’s main website or as a standalone site.
Some franchisors may wish to prevent or restrict a franchisee’s ability to make sales online, preferring only to grant the right to make physical ‘bricks and mortar’ sales in the granted territory. The reason for this is often the franchisor’s desire to retain control over its online offering and ensure consistency.
However, such franchisors risk falling foul of competition law. Franchisors operating in the UK and Europe cannot prevent franchisees from making online sales, as these are considered ‘passive sales’ and cannot be banned.
This means franchisors cannot prevent franchisees from selling online, but franchisors can require that the franchisee’s use of the internet complies with certain standards and conditions.
In the fast food and restaurant sector, franchisors may want to limit the delivery areas of franchisees based on quality and food safety requirements. This will be allowed if the restriction can be justified by food safety laws.
Restrictions on franchisee’s use of third party delivery platforms, such as Deliveroo, can be permitted if they’re based on objective criteria. Some franchisors also restrict their franchisees from selling through third party online platforms such as Amazon.
The relevant competition law considerations are complex and if you need further information or are unclear of how online sales are dealt with in your franchise arrangement, you should seek advice from a British Franchise Association affiliated solicitor.
Shelley Nadler is a legal director in Bird & Bird’s international franchising team and has many years’ experience of advising on all aspects of franchising.
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 DiscreteHeat franchise
Yes
Find Out More£125,000

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

Start your own Rassam’s Creamery franchise
Yes
Find Out More£500,000-£1m, bottom line 20%+

Request Free Information
Send a free enquiry to Rassam’s Creamery for further information!
_75_36_s.jpg)
Start your own BT Local Business franchise
Yes
Find Out More£1-2m t/o, 10-20% profit
_75_36.jpg)
Request Free Information
Send a free enquiry to BT Local Business for further information!

Start your own No Letting Go franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to No Letting Go for further information!

Start your own The Design Print Distribution Group franchise
Yes
Find Out MoreTurnover circa £120,000. 30% profit...

Request Free Information
Send a free enquiry to The Design Print Distribution Group 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
-
5 greatest lessons we’ve learnt from COVID
Added one day ago | 2 min read
-
Franchisees, ace staff recruitment with these top franchisor-recommended strategies
Added 4 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