It is illegal for a franchiser to require franchisees to purchase products only from "approved suppliers."

Question

Quizplus · Accepted Answer

It is legal for a franchiser to require franchisees to purchase products only from approved suppliers as long as the requirement is reasonable and non-discriminatory. However, the Federal Trade Commission may take action if there is evidence that the requirement results in an unfair competition or harm to the franchisees.

It Is Illegal for a Franchiser to Require Franchisees to Purchase