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Franchisor Issues: Maintaining Franchise Standards

As a franchisor, you know the value of maintaining high standards throughout your franchise system. One of the ways you can maintain your standards is by establishing a uniform system for your franchisees. This may include establishing a system wherein you take charge of supplying franchisees. This means that you can specify who your franchisees’ suppliers are and control the goods and services that are sold throughout your system.

When supplying franchisees, you will need to establish your terms of supply within the franchise agreement. To achieve consistency in your system, you can describe the specifications, standards, and operating procedures that each franchisee must follow.

In the area of supplying franchisees, you may designate approved suppliers that franchisees must buy from. You can also designate the goods and services they must buy and the presentation, packaging, and delivery of those products.

On the financial side, you may also set minimum requirements for the purchase of goods and/or services.

But supplying franchisees is just one area within your franchise agreement. There are many terms and conditions that you must establish for franchisees. When establishing the terms for your franchise system, you may want to get the help of a franchise lawyer who has experience in putting together franchise agreements.

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