Q&A

Question: Does a Franchisee have to accept supplies from a Franchisor?

A Franchisee will be required to accept supplies from a Franchisor if the Franchisor has disclosed this fact and the associated cost of the supplies to the Franchisee. In most cases, this occurs when there is a “core” product, and the Franchisee is required to purchase a minimum amount of this “core” product on an ongoing basis. The Franchisee must have however obtained permission from the ACCC to do this.