Can Endless Summer Sweets suggest pricing policies to franchisees?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
- D. Establishing prices. You generally can determine your own prices, but we may periodically make suggestions to you regarding pricing policies. We may establish customer loyalty programs with attendant program benefits for customers and maximum prices and minimum discounts for any given product or service you offer. You must honor any maximum or minimum prices we establish and provide customers with the benefits of any customer loyalty program Franchisor may from time to time establish to the extent permitted by applicable law). (Section 5.5 and 7.4).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 18–25)
What This Means (2024 FDD)
According to Endless Summer Sweets' 2024 Franchise Disclosure Document, franchisees generally determine their own prices. However, Endless Summer Sweets may periodically suggest pricing policies.
Endless Summer Sweets may also establish customer loyalty programs, which include benefits for customers and maximum prices and minimum discounts for the products or services offered. Franchisees must honor any maximum or minimum prices that Endless Summer Sweets establishes and provide customers with the benefits of any customer loyalty program that Endless Summer Sweets may implement, as long as it is permitted by law.
This means that while franchisees have some autonomy in setting prices, Endless Summer Sweets retains the right to influence pricing through suggestions and the implementation of customer loyalty programs. Franchisees need to be aware of these potential pricing controls and factor them into their business planning.