Vendor Exclusivity and Anti Competitive Clauses

 

– VENDOR EXCLUSIVITY AND ANTI COMPETITIVE CLAUSES

When a franchisee joins a franchise system they are often sold on the fact that they will benefit from group purchasing discounts.  Unfortunately, the truth is that vendor exclusivity and anti-competitive clauses often result in franchisee paying higher costs for goods and services than they would for similar or same products outside the brand.  FFI’s position is that these clauses should only be used for unique trade items, and they should not be used to benefit franchisors at the expense of their franchisees.

Points of Advocacy 

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Complete transparency and owner’s satisfaction guaranteed for vendors.

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No anti competitive price guidance to any vendors.

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Local vendors given priority for speedy and reliable delivery of services.

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No vendor exclusivity. Must provide multiple vendors and promote competition.

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Create independent Franchisee purchasing Cooperatives owned and Managed by Franchisees for vendors programs.