Item 16: Restrictions on What the Franchisee May Sell
Content: This is a description of the “conditions imposed by the franchisor on the goods or services that the franchisee may sell.”
Purpose: This protects the standards and uniformity of the franchise system.
Tips & Advice: If you are going to buy a business that has a specific type of product, chances are likely the restrictions to that product will be delineated clearly in this section. To use a fairly obvious example, such a restriction assures a McDonald’s franchisee will open the store each day with an expectation of selling Big Macs, not cell phones.