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Q: Can my franchisor dictate to me which service providers I must use, in particular the supplier of my business insurance?

Feb 12 2008

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Answered by: Julie Waites Ask a question

I'm afraid that the answer is yes. If the insurance company is nominated as the preferred suppliers in your franchise agreement and you have agreed to this, then there is not much you can do.

If you have genuine concerns regarding the supplier, you may want to speak to your franchisor and voice your worries.

Comments [1]

Comment by Wok2go Franchise

Tuesday 10th June 2008

Usually a franchise will dictate suppliers for sound business reasons. Often because preferrantial rates for franchichees have been negotiated in return for exclusivity, but also because the levels of service or quality of the product is the best for that franchise. It also ensures a level playing field for all franchises. At wok2go, we have carefully handpicked all suppliers based on a combimation of these, that ensure the best possible start for franchisees. Cheers!

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