The franchisee is an independent business partner: he/she finances his project, hires and pays his employees, and bears the costs and benefits from the fruits of his activity.
The franchisee must therefore be free to determine his or her resale prices to customers. The franchisor may, however, recommend resale prices, or even impose the implementation of specific promotional operations for all the network members.
The franchisor may also impose maximum resale prices that must not be exceeded.
The franchisor is not responsible for the franchisee’s business or actions.
In that respect, the franchisee must display in its point of sale and on all its documentation, its corporate name and the indication “independent franchisee, member of the XXXX network”.
This information is often displayed as a sign at the checkout and on receipts.
