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Dictating or Encouraging Franchisee Pricing

A price charged by a franchisee that is too low can adversely affect other franchisees and the franchisor by discouraging the provision of pre- and post-sale services, eroding brand image and jeopardizing the ability to introduce new products by depressing price points. Although relatively rare, a franchisee also may cause marketplace problems by charging too high a price for an attractive, new product in great demand.

9 minute read February 28, 2014 at 11:00 PM
By
Eugene F. Zelek, JR.
Dictating or Encouraging Franchisee Pricing

A price charged by a franchisee that is too low can adversely affect other franchisees and the franchisor by discouraging the provision of pre- and post-sale services, eroding brand image and jeopardizing the ability to introduce new products by depressing price points.

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