"Your Buzz On-the-Go" is a franchisor of a drive-through fast food chain of stores where all drinks and food contain caffeine.For example,even their breakfast burritos contain chocolate.The franchisor requires its franchisees to purchase all of the food items and paper supplies (paper bags,napkins,packaging,etc.)from a supplier that is owned by the franchisor.Mike,a franchisee,would prefer purchasing these items from less expensive sources.Most likely,what is legality of the requirement to purchase these items from the franchisor?

Question

Quizplus · Accepted Answer

The arrangement is legal for the food products because franchisors can require franchisees to maintain consistency in product quality. However, requiring franchisees to purchase paper items from a specific supplier may be considered illegal tying, as these items are not unique to the brand.

"Your Buzz On-The-Go" Is a Franchisor of a Drive-Through Fast