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.
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
Does a franchisor sell its products exclusively through its franchisee network or is it able to make them available elsewhere?
Answered by John Pratt
John Pratt writes: There’s no standard answer to this question because, for instance, a number of well... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: We first need to look at what we refer to as five-star franchising. Is your... read more
Will a franchisor ensure I operate my business within the required health and safety guidelines of the sector I operate in?
Answered by Shelley Nadler
Shelley Nadler writes: The franchisor should provide health and safety guidelines appropriate to the sector the franchise... read more
Answered by Louise Harris
Louise Harris writes: The initial investment in a franchise varies greatly across the industry, but it’s one... read more
Exciting Franchise Opportunities
Companies to Consider
Black Rooster Peri Peri
ROI within 18 months with an average net profit of 25%
£111,000 revenues, £82,000 gross profit and net profits of £48,000
Laser Clinics United Kingdom
In excess of £70,000
£50,000 – £100,000 profit
Third party sources
Fresh Car Valeting
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 2 years ago | 2 min read
Added one day 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