Jonathan Maze, of Restaurant Business Online, talks with industry experts like Ron Gardner, in his most recent article: Recent disputes highlight franchisors’ use of vendor rebates: most franchisors receive such funds to run their supply chain, but franchisees often push back as their prices increase.
Dady & Gardner, P.A. attorney Ron Gardner, talks about how franchisees understand the franchisor needs to make money, but are concerned about the franchisor making so much money that the franchisees’ final costs becoming prohibitive.
“As long as the franchisee pays less than the market, then the franchise is using their buying power, I don’t think franchisees would complain,” Gardner said. “It’s when they’re worse off” that they have problems.
Read the entire article here.
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