Restaurant Franchising, 3rd Edition

244 Restaurant Franchising

EQUIPMENT COSTS

Franchisors may require that equipment be purchased through their

cooperative, approved vendor or through the franchisor. This is done in order

to maintain uniformity of quality. For some franchisees this can be a good

deal, as benefi ts from large-quantity manufacturing/purchase can be passed

on to the franchisees. Also, the equipment may be equipped with special

customized features, which cannot be obtained in the market. However, this

can become a sore point if similar equipment is available at a lower cost than

that charged by the franchisor.

Although the fees charged by franchisors are nonrefundable ...