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Do franchise owners have to follow national sales and promotions? 

On Behalf of | Jul 5, 2024 | Franchise Business Models

One of the benefits of opening a franchise is that it comes with national branding. For instance, someone could open a fast-food restaurant. Local consumers are going to see national commercials for products and promotions, such as new menu items that come out or different sales and deals customers can take advantage of.

But franchise owners may question if they actually have to follow these promotions. For instance, say that a restaurant is running a two-for-one promotion, but the owner of a specific franchise doesn’t believe that it is going to be profitable. They still sell the same products, but they don’t want to offer the two-for-one special. Are they obligated to do it just because they run a franchise?

Some locations can opt-out

As a general rule, franchise owners actually have some flexibility when it comes to pricing. They can set their own prices, which may be higher or lower than the national average. After all, many franchises exist across the entire United States, but costs can be very different from one location to the next.

Additionally, you’ll often see that these advertisements or deals will say in small print that the offer is only good “at participating locations.” Even if 95% of locations do participate – so most consumers will think that the sale is happening everywhere – that doesn’t mean that 100% participation is mandatory.

Franchise owners need to understand the rules and regulations they need to follow and all of the legal options they have.

NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post.