The franchise industry is all over the board when it comes to accepting payments from vendors and suppliers.�Many franchise companies do not accept any such payments (instead negotiating for lower prices for their franchisees). Others accept them but require the payments to be made into the franchisees' advertising fund. Still others accept these payments and put them into the corporate coffers.�
Whatever approach is used, if any payments or rebates are accepted, then that fact must be disclosed in the franchisor's FTC mandated disclosure documents so it is a matter of public record.
Here's my suggestion for you.�Simply ask the franchise company what is standard in its operation--there are no secrets in this type of matter, so the franchisor should be willing to tell you straight up. Then factor it into�the pricing of your bid.�
Jeff Elgin has almost 20 years of experience franchising, both as a franchisee and a senior franchise company executive. He's currently the CEO of FranChoice Inc., a company that provides free consulting to consumers looking for a franchise that best meets their needs.