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.