How Franchisors Can Stop The Use Of Unauthorized Products Or Suppliers In Their Franchisees

Consumers should have the same customer experience, which includes receiving uniform products and services from any franchised location

By Content Writer
How Franchisors Can Stop The Use Of Unauthorized Products Or Suppliers In Their Franchisees

One of the most important features of franchising is uniformity. By using unauthorized products and/or suppliers, franchisees will start to break away from the uniform system standards set by the franchisor. This will then lead to consumer dissatisfaction and will eventually tarnish the brand image.

To protect the integrity of the system and the brand, franchisors must take affirmative steps to stop the use or sale of unauthorized products and supplies. Here are following steps how franchisors can prevent the use of unauthorized goods before problems arise.

Franchise agreement

It all starts with the Franchise Agreement. The starting point for any system standard is the franchise agreement. If the franchisor has not adequately reserved its right to control the products and supplies sold or utilized by its franchisees, its ability to keep unauthorized items out of the system will be severely limited.

Indeed, where the use of unauthorized products and supplies has been litigated, courts routinely begin their analysis with a careful review of the franchise agreement.


 A licensor has a right to terminate a license to use its trademarks when the licensee fails to meet the standards established by the licensor for products marketed under its trademark. Termination may be an option where a franchisee sells unauthorized products or uses unauthorized supplies.

Unauthorized products and supplies are often implicated in conjunction with other terminable offences by franchisees. The legal basis for termination is a breach of contract—constrained by any applicable state franchise relationship laws. A breach occurs whenever a franchisee fails to abide by contractual terms limiting use or sale of products and supplies to those authorized by the franchisor.

Proactive Approaches

Of course, the most effective way to resolve a problem is to prevent it from occurring in the first place. While litigation can effectively end use or sale of unauthorized products and supplies, pragmatic and proactive steps may forestall such noncompliance before it ever begins. Other less significant steps can be taken to maintain compliance with product and supply standards.

Get the Evidence

Whatever a franchisor does to ensure compliance with product and supply standards, the importance of gathering documentation and evidence depicting the non-compliance cannot be overstated. Photographic, documentary, testimonial, and other evidence of noncompliance serves as the factual basis for any relief sought from unauthorized products or supplies. The more evidence collected, the better the case comes for effective enforcement.

star franchise india
Related opportunities
  • Kids Entertainment Zones
    My Own Playhouse started on 15th June, 1990. It completed..
    Locations looking for expansion Delhi
    Establishment year 2021
    Franchising Launch Date 2021
    Investment size Rs. 10lac - 20lac
    Space required 2000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Herbal, Ayurvedic, Homeopathic & Natural Care Products
      MEDY365 – One of the fastest growing Dealer/Distributor Network Chain of..
    Locations looking for expansion Punjab
    Establishment year 2020
    Franchising Launch Date 2021
    Investment size
    Space required 00
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Sangrur Punjab
  • Quick Service Restaurants
    To own a business in food & beverages industry, Chick..
    Locations looking for expansion Tamil Nadu
    Establishment year 2009
    Franchising Launch Date 2013
    Investment size Rs. 5lac - 10lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Salem Tamil Nadu
  • Healthcare Products
    Locations looking for expansion Haryana
    Establishment year 2019
    Franchising Launch Date 2020
    Investment size Rs. 10000 - 50000
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Faridabad Haryana
Insta-Subscribe to
The Franchising World
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts

ads ads ads ads