Restrict Franchisee Sales

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What should my franchisee be selling?

Restrict Franchisee Sales

You definitely want your franchisee to sell any products or services related to the business. But you do not want them to sell unrelated products and services at the business site implying endorsement by the franchise system. You also do not want the franchisee to sell unsafe or untested products, even if they do relate to the business.

In Item 16 of the Uniform Franchise Offering Circular (UFOC) you can stipulate exactly what can and cannot be sold by your franchisee. You can further spell out where the franchisee can sell your products and services. It should be only at their franchise location. They should be prohibited from directly market to customers outside their territory.

Of course, you can also make provisions for allowances. You can set up a process for reviewing new products and services and for requesting marketing allowances.

   

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