Franchised Outlets and Stipulations of Proprietary Products and Proprietary Equipment

Often in the world of franchising a franchising company may have a unique business concept and model and in this franchised model there may be few if any products available to help the franchised outlet perform its duties. It is for this reason that many franchising companies established proprietary products and proprietary equipment to help the franchisee get the job done correctly, consistently and to the liking of the consumer of the end product or service.

In my franchising company this was the case and we had to create specialty equipment and some specialty products in order for the franchisees to stay efficient, profitable and consistent with the level of service that a customer had known and come to expect. It is for this reason that I adjusted our franchise agreement and designed a clause to address this issue; you will find it below:

4.5 Proprietary Products and Proprietary Equipment

Proprietary Products and Proprietary Equipment (