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.
Is a franchisee restricted when it comes to picking suppliers for the business?
As a franchisee, you may have to purchase goods and services from the franchisor or from suppliers approved or nominated by the franchisor. You will need to check the provisions of the franchise agreement regarding this.To ensure the high quality standards required and enforce uniformity throughout the network, a franchisor may dictate both the range of products and services that the franchisee can purchase and who those products are to be purchased from.If you have to buy all of your products from the franchisor, you need to enquire whether the franchisor will make a profit on this transaction. Occasionally the franchise agreement will not provide for the payment of a separate management services fee or other continuing fee - the mark-up on the sale of goods will instead be the source of profit for the franchisor.It may be that the franchisor will supply some of the goods or services and other goods or services can be obtained from suppliers nominated by the franchisor. You will need to find out who the nominated suppliers are and the terms and conditions on which you are purchasing the goods and services from them.Often the franchisee will receive the benefit of the bulk purchasing power and negotiating capacity of the franchisor and obtain favourable prices from nominated suppliers. In some cases, involving specialist products, it may be that only certain suppliers are able to provide these products to the standards required by the franchisor.There may, however, be other types of products that are freely available from a number of suppliers, and a potential franchisee should enquire if they are able to obtain the same product, or a product of the same quality, from an alternative supplier.
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
Companies to Consider
Potential ROI within 12 months, with average profits of 34% in the first year
PACK & SEND
Assists in securing third party funding
Fixed sites can earn up to £16,000 per month with profit margins of 65%
No Letting Go
I Am Döner
£10,000+VAT turnover per week, 20% EBITDA profit
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 5 hours ago | 2 min read
Added 3 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