Item 16 - RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL

Most franchisors have restrictions on what you may sell as a franchisee. Item 16 details the specific goods and services you are obligated and authorized to sell to customers, and the extent to which the franchisor may change these requirements during the term of the franchise agreement.

Objective
  • Identify how much control the franchisor has over the products and services you will sell as a franchisee.
Important Considerations
  • The very essence of franchising is to provide a consistent customer experience that equates with the franchise brand. This requires the franchisor to strictly control the products and services franchisees offer.
  • Are you permitted to add additional products and services, such as additional product lines?