Can a franchisor limit what franchisees can sell?

In California, franchisors are allowed to restrict what their franchisees can sell. This is because as part of the franchise agreement, franchisors maintain control over the products and services that carry their business name. By limiting what franchisees may offer, the franchisor ensures that the quality and reputation of their business is maintained. Generally, franchisors will provide franchisees with a list of approved products and services that they may sell. Additionally, some franchisors may require franchisees to only offer products or services that are provided by the franchisor, while others may allow franchisees to offer other products or services that may be related to their core business. Franchisees may also be required to maintain a certain level of compatibility between their products and those of other franchisees. For example, a franchisor may require that all franchisees in a certain geographic area offer the same menu items. In sum, franchisors can limit what franchisees can sell in California, as long as these restrictions are outlined in the franchise agreement. This helps franchisors maintain their brand’s reputation and establish uniformity among franchisees.

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Can a franchisor limit what franchisees can sell?

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