Q&A

Question: When does a Franchisor have to provide supplies to a Franchisee?

A Franchisor must supply a Franchisee with supplies if the Franchise Agreement creates an obligation on the Franchisor to do so. In most cases this will also have an associated cost and this will have to be disclosed to the Franchisee. Franchisors are required to act in good faith when engaging in such dealings and cannot refuse to sell goods to a franchisee in order to, for example, “punish” a franchisee for breaching the franchise agreement.